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Economic Development Newsletter

Economic Development
Creating Security and Opportunity for New Zealanders

A regular newsletter from the Office of the Deputy Prime Minister, Jim Anderton, Minister for Economic, Regional and Industry Development, summarising Government economic development activities.

27 March 2001 / Issue No 2

This issue of Economic Development:
1. Jim Anderton, comments on acknowledging the work of our local economic development experts
2. Key industries that can change our economy to be targeted.
3. Regional Partnerships announced - $586,000 to go to 5 regions
4. Mike Andrews appointed new Industry NZ Chairman
5. The 30th regional visit
6. Wood Industry Steering group update
7. Tairawhiti transport network report due in April
8. Economic Development Association New Zealand Biannual Conference
9. Enterprise Awards
10. Metal Skills
11. Economic Development contact details

1 Jim Anderton, Deputy Prime Minister, comment
Acknowledging the work of our local economic development experts
When I became Economic Development Minister, the government finally became a partner in economic development.

It was clear to me from talking to New Zealanders and my tours through the regions that central Government had been missing for twenty-five years. However the problem has been that economic and regional development often requires a co-ordinated approach and central government involvement.

For years this important work had been carried out by dedicated and largely unrecognised workers in regional New Zealand.

The work of the Ministry of Economic Development and now Industry New Zealand is building on the years of contribution to our economy by these local employment and enterprise people and their agencies. It has been these local economic development agencies that have been the main proponents of economic development in New Zealand.

My philosophy, and that of the Ministry's, is to bring central government to stand alongside their efforts and to help them wherever we can. I was pleased to speak with many economic development workers recently at the recent EDANZ (Economic Development Agency of New Zealand) Conference in Rotorua.

Partnerships are the way in which we can work together. This allows regions and communities to decide on where they want to go, working with central government to help them to get there.

Jim Anderton MP
Minister for Economic, Industry and Regional Development

Summary of a month of economic development:
2 What are the transforming industries?
The Government is actively identifying job-rich, high-skill, high-value export industries with the potential for rapid growth. Already this Government has established and advanced an industry steering group for the wood processing industry.

Jim Anderton announced on 21 March some other industries that need a similar approach:
* Fashion, apparel and textiles;
* Tourism;
* Creative arts, especially music and film;
* Knowledge industries such as ICT and bio-technology;
* Manufacturing, such as light alloys.

These industries are potential job-rich, high-value, high-skill industries. The first step in setting up an industry steering group is to identify industry leaders and creative thinkers that can make up the membership.

3 Regional Partnerships announced - $586,000 to go to 5 regions

At a meeting at the Dargaville Field Days Jim Anderton announced five new regions which will receive support through the Regional Partnerships Programme of Industry New Zealand. These were:
* Wairarapa - has been allocated $80,000.
* Tairawhiti - will receive $155,000.
* Hawkes Bay - is to get $100,000.
* Kapiti Horowhenua - has been allocated $51,000.
* Northland - will receive $200,000.

Up to $200,000 is available to assist regions to make economic development plans and build their capacity to implement those plans.
Further funding of up to $2 million per region is available to contribute to major regional initiatives that come out of the strategies developed in these first two stages.

A total of nearly $900,000 has now been approved to support regions since the scheme was launched last year. In the first funding round during December last year the Wanganui, Ruapehu, Rangitikei , Marlborough and Rotorua regions received funding support.

4 Mike Andrews appointed new Industry NZ chairman

Jim Anderton announced the new Chair of Industry New Zealand on 13 March.

Mike Andrews is well known as chief executive of Fletcher Challenge Ltd where he has thirty years of experience spanning forestry, building materials, steel, pulp and paper and energy. He is a member of the New Zealand Business Council for Sustainable Development, a member of the World Business Council for Sustainable Development and a member of the World Economic Forum. He is also currently chairman of the Wool Board's Implementation Project Committee.

Mike Andrews has a track record and widespread respect in linking business and economic development. He replaced Craig Boyce of Christchurch who was the acting-chair since the board was appointed in October 2000.

5 The 30th regional visit

Jim Anderton has visited 30 regions since becoming Regional Development Minister. Each visit lasts for around one and a half days and involves talking to key groups on the priorities and issues for each region. These 30 visits are in addition to a large number of other trips to areas for specific purposes.

The 30th regional visit was to the Eastern Bay of Plenty where Jim Anderton spoke at a public meeting, had breakfast with iwi representatives as well as visiting a plant nursery and other local forestry projects.

In Whakatane Jim Anderton tried out some revolutionary kiwi software that allows people to create their own TV schedule by retrieving selected television programmes from the internet.

The software is the product of an innovative NZ development company and has been praised by Microsoft. hopes to have fifty New Zealand staff by the end of next year, as well as having offices overseas.

"I knew to be a successful Regional Development Minister I couldn't spend all my time in Wellington. It has been essential to meet with people in all our regions, hear what they have to say and work with them in partnership to achieve the objective of creating jobs and growing business," said Jim Anderton.

Jim Anderton has visited the Horowhenua, Northland and Eastern Bay of Plenty since February.

The Northland visit included visiting the Dargaville A&P show and talking with local iwi and councils. Jim Anderton also visited a number of enterprises including the Whangarei Superyachts facility and he opened the new Juken Nissho plant in Kaitaia.

6 Update on Wood Processing Industry Steering Group

Jim Anderton will seek commitment from Cabinet in the next few weeks to address the barriers that prevent jobs being created from the wood processing industry.

The barriers the Wood Processing Industry Steering Group have identified to job creation are transport infrastructure, skills and training for workers, issues around the Resource Management Act, access to overseas markets, creating higher value exports, research and technology, bio-security risks, national certification of New Zealand wood products quality, and climate change.

Jim Anderton said, "addressing these barriers should be a regional development priority. I will be asking for continued Cabinet commitment to work with industry and local government to go through all the issues, remove roadblocks and ensure we create as many jobs as we can from the wood processing industry".

7 Tairawhiti transport network report due in April

The issue of transport infrastructure in Tairawhiti is being assessed by a working group made up of Government agencies and Tairawhiti local authorities, iwi and business.

Transport networks in the region are vital because of the need to be able to process and transport wood products from the maturing forests in the region.
A draft transport plan has now been developed following work with local people in Tairawhiti and all the relevant government agencies.

Jim Anderton has asked for the financial evaluation and economic assessment to be finished so that reports can be made available in April.

8 Economic Development Association of NZ (EDANZ) Biannual Conference

In March Jim Anderton visited and spoke at the EDANZ Conference in Rotorua. The topic of this conference was ‘Benchmarking Best Practice’ and over 50 members attended the conference to discuss new ideas, current issues and future best practice in economic development.

Other key speakers included representatives from Te Puni Kokiri, Industry New Zealand, Foundation for Research, Science and Technology and Investment NZ. The conference was held in Rotorua and hosted by the Rotorua District Council.

The next EDANZ Conference is in Invercargill on 10 and 11 September. For any further details about future conferences, seminars or EDANZ contact Ann Verboeket on

9 Enterprise Awards

The next round of Enterprise Awards will be announced in early April. Laila Harré, Minister of Women's Affairs attended a breakfast at Franklin Small Business Enterprise Centre and announced some 22 Award recipients on 26 January.
Hon Laila Harré rides a Monsta Trike. On the Trike with Laila Harré is John Butler the entrepreneur who was assisted by the Franklin Small Business Enterprise Centre. He is to receive $3,000 from Industry New Zealand to assist with the development of these motorised trikes. The vehicle is classified as a car, and helmets are not necessary although the Minister is strapped in with a seatbelt.

10 Metal Skills

On Friday 7 March Jim Anderton presented a Business Growth grant to East Tamaki company, Metal Skills. Business Growth is a programme run by Industry New Zealand. The company manufactures high quality components in small and medium production runs. The company will receive a $37,500 grant to help it achieve growth of 40 staff and an extra $5 million in sales over the next two years. Most of those sales are to the UK and the USA.

11 Economic Development contacts: 08004BIZINFO
Venture capital information 0800VCAPITAL
Venture Capital Conference 22 and 23 April 2001

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