Hon Jim Anderton Speech notes

Breakfast Speech - Auckland Export Institute Breakfast

7:30 am - 9:00 am

18 July 2001

Logan Park Hotel

187 Campbell Road,

Greenlane

Auckland

Role of Minister of Economic Development, Industry Development and Regional Development; to provide developmental dimension in Government.

In 1970 Taiwan $1 billion exports, rice and sugar while NZ $1 billion meat, wool and dairy.

In 2000 Taiwan had $130 billion of exports compared to New Zealand with $25 billion.

Ireland/Scotland (Scottish Economic Development Agency)

$14000 m per year - $600 mill Economic Development.

With $800m skills training.

Hands-off has not worked.

- 1973 no overseas debt

- 27 consecutive years later $103 billion.

Singapore Economic Development Board

- $145,000 million cash reserves to call on.

New Zealand budget a more modest $332m

But - NZ innovative and this is the answer for us.

86% of New Zealand businesses have five or fewer employees.

Less than 4% of 259000 businesses export. That is only 8,841 businesses out of 259,000.

127 companies account for 73% of our total merchandise exports.

30 companies earn half of our foreign exchange.

Labour Alliance Coalition committed to assisting exporters.

Trade New Zealand is the primary government agency for export promotion. But many agencies involved.

Industry NZ assists businesses to become “export ready’ by working to remove barriers to business growth.

Industry NZ programmes address some of the issues that impact on businesses both exporters and non-exporters.

This government is committed to partnerships, and to increase exports. And as Deputy Prime Minister bringing whole of Government approach.

Acting Minister of Customs. Customs have launched a partnership programme to reduce compliance costs called Frontline. This programme is helping exporters.

New Zealand Yachts in Whangarei is one of the Frontline foundation partners.

NZ Yachts and other Super Yacht builders import special components. These components are re-exported as part of a finished yacht.

Previously NZ Yachts paid duty and GST on imported components, and claimed it back when the finished craft was exported. Now they register those components with Customs and avoid having money tied up for months.

- Hobsonville Airforce base land

Superyacht proposal to produce $600m exports, 400 jobs.

9 Government Departments involved

Original timeframe 6 years reduced to 6 months

- Wood Processing - Not logs

- Manufacturing and other Industry Steering groups.

I understand you want to know specifically what Industry New Zealand is doing to assist exporters through support for trade shows and visiting overseas markets.

The Enterprise Awards Scheme is one of the key Industry NZ programmes for small and medium businesses.

Enterprise Awards can provide up to $20,000 in any one year for up to 50 per cent of costs for excellent commercial ideas. Starting or expanding existing businesses.

Over 170 businesses have received an award and another 30 or so are going to be announced in the next few days taking the number to over 200. Costs often met are feasibility studies, strategic planning, market research, prototype design, intellectual property protection and environmental management. Earlier this year I announced changes to the scheme so that businesses can seek assistance for trade shows. Already there have been Awards made for this.

The scheme does not assist with the costs of travel or accommodation. Difficult to monitor and open to abuse.

Governments used to fund overseas travel and there would be a sudden up-swing in interest in export markets in South Africa coinciding with the All Blacks playing the Springboks, or increased applications to explore opportunities within the EC when there was a UK or French tour.

There are other ways that government assists businesses wanting to export.

Industry NZ and Trade NZ are developing business clusters. These networks will facilitate information sharing, and create the opportunity to share costs.

Companies may compete domestically, but there are real benefits to pooling skills and resources in tackling offshore markets. Trade NZ’s Export Networks programme offers financial assistance to groups of three or more exporters who have established a genuine network with specific and well-defined export opportunities.

Trade NZ will contribute to costs incurred by these networks, in undertaking activities that are part of the group’s marketing strategy. These costs can include in-market visits, trade fair attendance and development of publicity material.

Trade NZ also has the Marketlink facility that offers businesses professional assistance with market selection and research.

This month the Export Credit Office is opening. It provides export credit guarantees to cover exporters against the possible default of the overseas importer or the bank.

This is another tangible way the Government is targeting export development and working alongside business.

Assisting business strategy - five targets

1 Help new innovative businesses to start (money, skill, experience)

- Enterprise Awards, mentoring, training.

- D'Amalfi Helmets in Auckland, who are dealing with nine international markets, including coast guards in three major countries.

2 Grow existing business, many of these exporters.

- Aunt Betty's Steam Puddings - Bank support - 18% of UK market.

- Fraser Fire and Rescue - Fire Engines exported to South Australia

- Ship Building Cluster in Dunedin.

- Hong Kong High-Risers 50 cranes

- Celebrate Success, Bruce McLaren, John Britten

- Casting industries, apprenticeships.

- East Tamaki Sheet metal shop - telecommunications componentry

- High Protein meat chips

3 Bring new Business into New Zealand

- Overseas investment in National interest - Juken Nissho - Kaitaia

- Ford - light alloy plant

- Beef jerky

- Ericcson

- Allied Telesyn

4 Regional Development

- Partnerships

- 19 regions have been given funding for strategic planning, capability building.

5 Infrastructure

- Roads, Rail, Air, Ports

- Telecommunications

- Skills development (skills not jobs)

- Lost 20-30 years

Flexibility of Programme.

If it works do not try to fix it - do more.

If it doesn't - change it.

Be accountable, be in touch - LISTEN.

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