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BUDGET 2001: Opportunities for NZ businesses

24 May 2001

Opportunities for New Zealand businesses

New Zealand businesses will have the opportunity to capture more purchases by the New Zealand and Australian Governments under an expansion of the Industrial Supplies Office.

Economic Development Under-Secretary John Wright today announced an extra $4.4 million over four years for the Industrial Supplies Office [$820,000 in 2001-02, and $1.2 million of new funding in following years].

New Zealand businesses were able under Closer Economic Relations [CER] to bid for major Australian projects but until now had been simply advised of a tender, John Wright said.

"Extra resources in Budget 2001 will allow the ISO to become more than just an information provider.

"It will be able to follow the Australian example of employing specific project managers to become involved in major projects. They will work with architects and buyers and proactively identify New Zealand businesses that should tender for work.

"This year the extra funds will be used to provide project managers to work with hospitals, prisons, large private sector investors and major Government departments both here and in Australia. They will co-operate with Trade NZ to promote the use of New Zealand made goods and services."

It was estimated that the increased support for the ISO would result in import substitutions worth $147 million over three years.

"This is Government working in partnership with the private sector to create jobs and opportunities for New Zealanders.

"The expansion of ISO follows a successful pilot where an ISO representative worked with the construction team on the $400 million replacement of Auckland Hospital. It's estimated that up to $100 million of export replacement is potentially available from that project alone," John Wright said.

ENDS

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