Young Jonathan: Financial Review Debate — In Committee 
Text is incorporated into the Bound Volume 
Young Jonathan: Financial Review Debate — In Committee 
[Sitting date: 12 March 2013. Volume:688;Page:8432. Text is incorporated into the Bound Volume.] 
JONATHAN YOUNG (National—New Plymouth) 
: 
 I am very pleased to stand and speak on the financial review of the Ministry of Economic Development which actually is a ministry that has now been folded into a new ministry called the Ministry of Business Innovation and Employment. The ministry was established back on 1 July 2012 and it brought together a number of the Government’s business-facing functions under one agency. It aims to support New Zealand businesses in order to create a more prosperous economy. 
Is it not great that Treasury forecasts in December showed a real GDP growth from 2.3 percent in 2012-13 to around 3 percent in 2013-14? So while all the prophets of doom on the other side—normally David Clark is a happy member but what a depressing speech. Normally we are able to very easily just rebuff such depression that comes from the other side of the Chamber. We can see that New Zealand is forging ahead. 
We know that this country relies upon its export markets. We know that that is the real lifeblood of our economy. It is great to see that our Prime Minister has been very active in Latin America visiting four nations that are exceedingly big in their GDP with $4 trillion between them—Mexico Colombia Chile and Brazil—to build closer trading relationships with these nations which is going to enable New Zealanders to be able to export and earn more overseas exchange. New Zealand Trade and Enterprise reported to us that over the last financial year New Zealand business presence in Asia and Australia showed the biggest growth and grew substantially as well in South America. So the Prime Minister going there leading a trade delegation is very much part of the strategy that we are building in this nation to be global traders with our commodities. 
Latin America’s middle class is growing rapidly and now represents 30 percent of the population—the World Bank tells us that. This group has more disposable income and is fuelling demand for better infrastructure and an improved quality of life. That is where New Zealand can provide commodities to this market. New Zealand’s exports to Latin America were worth $1.36 billion in 2011. We believe that we can substantially increase that. What that means is jobs for New Zealanders and greater overseas exchange for this country that is going to lift the quality of life for New Zealanders here but also is going to bring a quality of life for our trading partners. 
Our dairy products are a significant export earner. New Zealand has major investments in dairying and farm production in the region particularly in Chile Brazil and Colombia. So this is a good-news story. It is a good-news story of what New Zealand is doing and continues to do led by this National Government which is forging relationships with our overseas trading partners. All of this is building the strength that we have in the international market place. 
Around that area innovation is such an important area of economic development. If we are going to see a lift innovation is one of those key areas where a lift can happen. Productivity lift does not just happen because you are doing more of the same. A lot of the time it is doing something new and doing things better. What the Government has done is establish Callaghan Innovation a new Crown entity charged with accelerating commercialisation of science-based innovation in New Zealand firms particularly in the manufacturing and services sectors which include food processing and beverages by better connecting those sectors with science technology and support that they need in order to develop and commercialise their ideas. 
It is great to see that that is happening—increasingly so. We are seeing real signs of growth. There are signs that the pace of growth has picked up in recent months. For example the volume of building work undertaken rose by 1.8 percent in the December quarter which was seasonally adjusted after gaining 9.8 percent in the September quarter. We know that the construction sector can create tremendous uplift for the economy because there are so many different sectors and trades that are involved in this particular area. Manufacturing volumes rose by 1.5 percent in the December quarter. 
Looking ahead employment growth is expected to pick up due to the Canterbury rebuild improving business confidence. Although we are still sailing into headwinds internationally New Zealand’s economy has become more resilient more efficient and more productive. Thank you.