Economic Development Newsletter – Jim Anderton

Creating a springboard for growth

A newsletter from the Deputy Prime Minister, Jim Anderton, Minister for Economic, Industry and Regional Development, on Labour/Alliance Coalition Government economic development activities.

11 October 2001 / Issue No 6

This issue of Economic Development:
1 Jim Anderton on regional development and the future of our economy
2 Regional Development Conference
3 Regional Infrastructure
4 Business Growth Service Grants – recent grants
5 Taupo and Chatham Islands to get $152,500 for regional development
6 Jim Anderton welcomes Enterprise Awards
7 Economic Development contacts

1 Regional Development and the future of our economy

Regional Development is vital for all New Zealanders. I think we need to shift our focus to what our economy could look like in ten years.

The opportunity we have is to develop an economy with dynamic regions which are regarded by all New Zealanders as integral parts of our national economy. Every region can capitalise on local strengths and advantages to create jobs and build stronger communities.

In ten years time Nelson could have a stronger international arts and creative tourism industry. The West Coast could offer a broader range of nature tourism opportunities. Otago and Manawatu could be promoted around the globe as places of internationally recognised applied education and research facilities. Gisborne and the central North Island with international centres of excellence with their innovative wood processing facilities. Canterbury could be more widely recognised as Australasia’s Silicon Valley.

These are just possible glimpses into the future. Each region needs to develop its own specialisations as part of regional plans that are being prepared by the partner regions in Industry New Zealand’s Regional Partnerships Programme. Through these plans each region needs to ensure that their key regional strengths have the best possible environment in which to flourish.

If we don’t look ahead and actively develop our strengths, they may never properly emerge.

This Labour/Alliance Coalition Government is working to play our part. We will co-operate with regions to ensure there is the necessary infrastructure. Regions need transport, telecommunications, and other links as well as a strong education system that supports regional development. Already we are working on these areas. The Government is supporting South Island Councils to investigate the viability of the Southerner rail service. We have funded studies on transport infrastructure in Tairawhiti and Northland. The Alliance sees a strong network of regional polytechnics as essential.

2 Regional Development Conference

The Regional Development Conference on 28 and 29 November in Rotorua will allow regions to share their visions for the development of the regions and the New Zealand economy. The conference is called “Regional Development – A Springboard for Growth”. I see the conference as a watershed; a chance to take stock and put regional development at the forefront of our economic agenda.

I urge you to attend and to share your views with other regions and with the Government.

Conference contact details are:
regdev@confer.co.nz
Conferences and Events Ltd
Fax:(03) 546 6020
Phone:(03) 546 6022
Earlybird Conference registrations close on 20 October 2001.

3 Regional infrastructure (rail, air, roads, broadband)

“In every region I visit the issue of regional transport and other infrastructural services are an important issue for economic growth.

“In New Zealand today partnership in almost every strategic sector is emerging because of a need for the public sector to re-enter the frame.

“As far as I am aware, no other country in the eighties and nineties deregulated and privatised as far or as fast as New Zealand attempted.

“In banking, electricity, telecommunications and transport, to name a few, the public sector is making a come-back,” said Jim Anderton.

See Jim Anderton’s speech “the lessons of privatisation” that was to be delivered to the Economic Development Minister’s conference in Australia.
http://www.beehive.govt.nz/speech.cfm?speechralph=36208&SR=1

Rail – Southerner/Auckland
Partnership between central and local government and Tranz Rail has kept the Southerner passenger rail service running until at least February.

The Government and local authorities will make a contribution of $240,000 towards the running costs of the service until 10 February next year.

Jim Anderton said the deal would almost certainly not have been possible if the Coalition Government had not created the Ministry of Economic Development.

“The Ministry has worked closely with local authorities and contributed funds because of the regional development and tourism potential of the service.”

Jim Anderton acknowledged the co-operation of Tranz Rail in keeping the service open while a deal was arranged, and in agreeing to meet any further shortfall from continuing until February.

First release: 20/9/01 http://www.beehive.govt.nz/speech.cfm?speechralph=36077&SR=0
Announcement 8/10/01 http://www.executive.govt.nz/admin/dpress.cfm?speechralph=36239

The lease and infrastructure assets of the Auckland Rail corridor will be sold by Tranz Rail for a price of $81 million and letters have been exchanged between the Government and Tranz Rail.
Michael Cullen’s statement http://www.beehive.govt.nz/speech.cfm?speechralph=36176&SR=0

Other regions can approach the Government on their passenger rail issues.

Transport networks
In Tairawhiti and Northland integrated transport studies have been funded to look at the priorities and investment needed to ensure transport networks are open and available to support regional development.

Air NZ
Regions and industry need to be able to rely on air services. The Government has announced a plan to reinvest in Air New Zealand and ensure it continues to link New Zealand internally and with the world.
Jim Anderton’s statement: http://www.beehive.govt.nz/speech.cfm?speechralph=36211&SR=0
Dr Cullen’s statement: http://www.beehive.govt.nz/speech.cfm?speechralph=36214&SR=0

Broadband communication

The Labour/Alliance Coalition Government is committed to solving the problem of rural communities being connected to the knowledge economy.

The Government is launching pilot schemes designed to bring broadband services to regional New Zealand.

Broadband is high-speed two-way Internet connection, and regional New Zealand could miss out on it unless some way is found to make supply financially viable.

The Government wants to ensure all kiwi communities can access two-way high-speed Internet services by the end of 2003.

The pilots were announced today by Economic Development Minister Jim Anderton and Communications and Information Technology Minister Paul Swain. They say broadband is crucial for business and for our economic and social development.

The focus of the pilots will be finding ways to make broadband commercially viable.

The Ministry of Economic Development will fund the pilots at a total cost of up to $300,000.

4 Business Growth Service Grants – recent grants

"For our economy to grow and prosper we need our successful companies to grow and create jobs and export income,” said Jim Anderton announcing two Industry New Zealand, Business Growth grants of $100,000 to successful Hawkes Bay companies

"Rissington Breedlines shows how primary industry can take hold of new technology to make themselves more competitive. This company is a sheep and cattle breeding business and is using DNA technology to tag their animals and increase productivity.

"Hygiene Designz is launching a new electronic linen hand-towel dispenser with significant export potential. Hygiene Designz is also making a significant contribution towards these costs and the company expects to create 35 jobs over the next three years.

The media release is linked: http://www.beehive.govt.nz/speech.cfm?speechralph=36094&SR=0

"Many New Zealand businesses are innovative and built around creative ideas, but many lack capacity and capital to expand. Grants like this which are matched dollar for dollar by the company, will make significant returns to our economy," said Jim Anderton.

“Industry New Zealand has experts who can assist companies and assess how best to help them to help New Zealand,” said Jim Anderton.

The Business Growth Fund is one of the range of measures promised in the Alliance pre-election policy "Partnership 2000" which outlined practical ways to create jobs and make the New Zealand economy perform better.

Partnership 2000 is summarised: http://www.alliance.org.nz/info.php3?Type=PositionPaper&ID=162

Jim Anderton and Maori Affairs Minister Parekura Horomia announced a $100,000 contribution to assist plans for an extra 300 jobs to be created by boosting forest planting on the East Coast.

The Business Growth Grant will go to forest management company, Ngati Porou Whanui Forests Ltd will assist a joint venture with Hansol NZ Ltd to plant an extra 10,000 hectares of Ngati Porou marginal land.

The Business Growth Service was designed to help individual businesses and groups of business which can be sectors, clusters or iwi based groupings," said Jim Anderton.

The media release is linked: http://www.beehive.govt.nz/speech.cfm?speechralph=36083&SR=0

5 Taupo and Chatham Islands to get $152,500 for regional development

Taupo and the Chatham Islands are each taking another step toward guaranteeing a strong economic future for them and for New Zealand.

Regional Development Minister Jim Anderton today welcomed Taupo and the Chatham Islands joining Industry New Zealand's Regional Partnership Programme and receiving $92,500 and $60,000 respectively to develop regional economic development plans.

"I know that in both regions the partnerships will have significant benefit to local people through the Regional Partnerships Programme.

The media release can be seen at: http://www.beehive.govt.nz/speech.cfm?speechralph=36212&SR=0

Other regions have sought to join the Regional Partnership Programme and the next announcement from Industry New Zealand on these is expected to be in early November.

Details on the RPP: http://www.industrynz.govt.nz/regional/index.shtml

6 Jim Anderton welcomes Enterprise Awards

Economic Development Minister Jim Anderton announced recent rounds of Industry New Zealand Enterprise Awards.

The ninth round was announced in September and consisted of 35 Awards totalling $308,601.

"Seeing the continuing success of past Enterprise Award companies shows that local business is strong and innovative. With the current uncertain international economic situation we need to celebrate our successes and new business ideas," said Jim Anderton.

To see releases on the awards: www.executive.govt.nz/minister/anderton/index.html
To find out more about Industry NZ: http://www.industrynz.govt.nz/sme/sec03_overview.shtml

Jim Anderton visited De'Amalfi Survival in Auckland who recently won their second award of $20,000, having won their first award in round one. The company makes survival and specialist safety equipment and now has exports to the United States, Russia, Holland, Germany, Australia and Spain.

7 Economic Development contacts:
www.executive.govt.nz/minister/anderton/index.html
www.industrynz.govt.nz
www.med.govt.nz
www.bizinfo.co.nz 08004BIZINFO
Venture capital information: http://www.nzvif.com/
www.vcapital.co.nz 0800VCAPITAL
www.alliance.org.nz

A Wood Processing Industry Steering Group newsletter will be launched in the next few weeks by Industry New Zealand. If anyone is interested in receiving this contact mike.booker@industrynz.govt.nz

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