Govt may widen range of debt securities

In its 28-page response to the Capital Market Development taskforce's 60 recommendations, Commerce Minister Simon Power said consultation would take place this month with a view to recommence issuance inflation-indexed bonds by May. The security was introduced in 1996 and suspended three years later, though Eriksen & Associates managing director Jonathan Eriksen vouched for their return early last year.

The government document said it would give ongoing consideration to longer-term debt and foreign currency debt as other options to raise money, and potential retail issues would be investigated along with why there was a lack of participation in government debt products.

One way the government hopes to entice investment from offshore investors is by cutting the 2% approved issuer levy for some public issues of debt to zero. The government expects to report back in the second half of the year on the proposal, for a possible inclusion in a tax bill later this year.