The Wellington Regional Chamber of Commerce has welcomed the news that the government intends to create a Productivity Commission.

"A significant improvement in productivity growth is necessary to secure better economic growth for New Zealand. A Productivity Commission with that outcome as its focus will make a welcome contribution," said Chamber CEO Charles Finny.

"The Chamber has been calling for such an institution to be established in New Zealand for some time.

"Australia has a much better productivity record than New Zealand. One of the reasons for this better performance has been the existence in Australia of an independent Productivity Commission.

"The Chamber has been enormously impressed by the work of the Australian Productivity Commission and we are pleased that the new New Zealand entity is expected to be based on that.

"Such an organisation should cover the economy as a whole as well as the public sector," Mr Finny concluded.