BusinessNZ Chief Executive Kirk Hope says New Zealand has led the world in developing fiscal and monetary policy settings, including an independent Reserve Bank and fiscal responsibility requirements in the Public Finance Act.

He says New Zealand’s settings could be improved further with an institution to provide costings of political policies.

"Often Parliament and the public are not well informed about the amount and quality of government spending, or of the spending entailed in policies proposed by political parties.

"Independent information on the amount and quality of expenditure and taxation would be helpful in gaining a clearer picture of New Zealand’s financial sustainability and fiscal risks.

"However, it would be important for any such new institution to have its role and powers restricted to policy-costing. A wider role in commenting on broad fiscal and budgetary issues would duplicate existing work by Treasury and other organisations."

BusinessNZ has made a submission to the Treasury discussion document: Independent Fiscal Institution for New Zealand.