Overhauling competition rules and allowing foreign firms to hold data about New Zealanders are among recommendations to improve the underperforming services sector.
The Productivity Commission has put out its final report into the sector, which accounts for about 70 percent of economic output and covers sectors from hairdressing to tourism to government bodies.
New Zealand's productivity lags behind most developed nations, so improving the performance of the biggest part of the economy is important and the commission is convinced improvements can be made.
They include overhauling competition law to promote competition, and allowing foreign cloud computing sites to host information about New Zealanders held by the Government.
