New Zealand should look to Silicon Valley as a model to follow, rather than Ireland, Israel, or Finland, says Roger Kerr, executive director of the Business Roundtable.
Kerr, who was speaking at the recent ITANZ AGM, says the IT industry would perform better if largely left alone.
Kerr says that governments cannot pick winners, pointing out that Finland’s economy has grown slower than New Zealand’s over the past 10 years, Britain is trying to recover $50 million in regional aid after Motorola recently closed a Scottish factory and Ireland has only succeeded after it “moved in a free-market direction” and lowered taxes on foreign investment.
Kerr says many firms in the New Zealand IT sector are finding "the present environment very tough".
The business group advocates lower taxes and fewer regulations in the way of laying off workers when ventures don’t work out.
IT businesses represented in the Business Roundtable include Jade, EDS, Ericsson, HP and IBM.