Budget 2004

Hon Jim Anderton
Minister for Economic Development
Minister for Industry and Regional Development

Promoting New Zealand in the world economy

"New Zealand's ability to promote our skills and talents and raise our position in the global economy is enhanced by Budget 2004's investment, management and market development initiatives. Programmes like Brand New Zealand and a new Major Events Fund will also support our work to promote New Zealand internationally as creative, diverse and technologically advanced", Minister of Economic Development, Jim Anderton said today.

"New Zealanders have a wealth of unique creativity and talent that we can build on to develop high skill job opportunities and high value exports. To help us do this we need to attract quality investment, strengthen industry capabilities and develop our international markets. This package of Budget 2004 initiatives enhances our ability to do just that," Jim Anderton said.

Budget 2004 takes a comprehensive approach to economic development, focussed on strengthening and deepening New Zealand's connections with the world economy. Major events also have the potential to be a significant part of such a strategy.

"Major events can be used to promote New Zealand to new international markets and vast new audiences who may know little or nothing about us. Such events also contribute considerable financial and economic benefits to local economies. While the America's Cup 2000 generated economic activity worth $640 million for Auckland, smaller events like the World Rally Championship still generated over $50 million. The returns to New Zealand from these events are well worth working for," Jim Anderton said.

Part of the four year $500 million Growth and Innovation Budget Package, the Major Events Fund provides up to $1.5 million in 2004-05 and up to $3.5 million each year thereafter for a total of $12 million over four years.

"New Zealand faces strong competition for the investment that businesses need to expand and to develop our innovative ideas, technology and markets. Investment New Zealand and the Strategic Investment Fund received a boost in this budget so we are more able to capture this critical investment and further improve our economic and social development," Jim Anderton said.

Investment New Zealand will receive a boost of $26.5 million over the next four years. The Strategic Investment Fund will receive additional operating funding of $4 million a year starting in the 2004-05 financial year for a total of $16.1 million over four years.

"Good management is also critical to the success of business. Budget 2004, therefore, has provided funding so we can work together with businesses to help them maximise their opportunities to build up management capability," Jim Anderton said.

The Ministry of Economic Development will receive $1.2 million for each of 2004-05 and 2005-06 for this management capability work.

"New Zealand Trade and Enterprise will continue to work with key sectors to expand opportunities for growth and maximise value. The sector focused development initiatives will help support projects that establish networks and relationships with leading global businesses," Jim Anderton said.

The sector development package includes $6 million for each of 2004-05, 2005-06, 2006-07 and $8 million for 2007-08, that is $26 million over four years.

"Small and medium enterprises in particular, will benefit from new assistance to help them to develop a presence in global markets. The Market Development Assistance scheme will provide part-funding to help New Zealand businesses with trade promotional activities, overseas representation and marketing," Jim Anderton said.

The Market Development Assistance scheme will receive $7.5 million for each of 2004-05, 2005-06 and 2006-07, rising to $12.5 million each year from 2007-08 onwards, that is $35 million over four years.

ENDS

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