Anderton Jim: Industry New Zealand and Trade New Zealand Integration Bill — First Reading 
Anderton Jim: Industry New Zealand and Trade New Zealand Integration Bill — First Reading 
[Volume:607;Page:4345] 
Hon JIM ANDERTON (Minister for Economic Development) 
: 
 I move  
That the Industry New Zealand and Trade New Zealand Integration Bill be now read a first time. 
 After the bill has been read a first time I intend to move that the Commerce Committee consider the bill. I also intend to move that the Commerce Committee be instructed to report to the House by Monday 28 April 2003 rather than the default period of 6 months as Cabinet has agreed to an establishment date of 1 July 2003. 
With this legislation the Government— 
Hon Tony Ryall 
: For 1 month? 
Hon JIM ANDERTON 
: It is National Party policy. I would have thought the member would be supporting it. 
With this legislation the Government is creating a new economic development agency. Last week it was decided that this new agency would be called New Zealand Trade and Enterprise. New Zealand will now have a one-stop shop for economic development and trade promotion. We are creating a new organisation to integrate the services currently provided by Trade New Zealand and Industry New Zealand with the aim of making those services as seamless and responsive as possible. This Government decided early in its term of office that it had a smart and active role to take in the economy. The work we have done with Industry New Zealand and our regions; the partnership started with business communities and local government; with unions industries and Maori are starting to make a real difference to New Zealand’s economic and social fabric. 
Over the last 2 years it has become obvious however that integrating the services of these two entities—Industry New Zealand and Trade New Zealand—was in the best interests of industry development in New Zealand. It will make life easier for business and from the Government’s perspective it will make sure that economic development policy is well integrated and user-friendly. This move brings together and builds on Trade New Zealand’s experience both internationally and in New Zealand export sectors as well as Industry New Zealand’s experience in working with investors business and the regions. Under New Zealand Trade and Enterprise business will have a powerful partner for growth backing its drive for growth and success. 
New Zealand has always been a nation of exporters and entrepreneurial skills and these have stood us in good stead but we need to lift our performance yet again. The rules have changed and we are now living in a global marketplace. New Zealand needs to connect to the world and build strong networks. The Government recognises that our businesses must be internationally competitive whether their markets are domestic or offshore and that internationalisation is critical to improving New Zealand’s overall economic performance. The major objective of New Zealand Trade and Enterprise is to support the development of internationally competitive New Zealand businesses. Well-designed and delivered business development services have the potential to be a major contributor to the Government’s goal of becoming a genuinely global innovative economy. Such business development services can assist firms to leverage their innovations skills and talent into global markets. 
Essentially the move to integration is motivated by three drivers. First as I have stated already the rules have changed. Many New Zealand companies are now born into the international environment directly on their inception as new entities. Their markets opportunities and business models are based on export markets. 
Secondly we need more exporters as well as more exports. I do not think that many New Zealanders realise that over 50 percent of our entire export earnings come from 127 companies so we have a very narrow base and we have to broaden that base as quickly as we possibly can. New Zealand Trade and Enterprise will be better placed to build capability in New Zealand firms so that they can connect globally attract investment from both inside and outside New Zealand and adopt best practice and grow effectively. Getting more exporters to the starting line is vital for increased export growth. 
Thirdly our clients want an integrated service. We have had that clear and consistent message from both Industry New Zealand and Trade New Zealand clients. They want a single point of contact for export and business growth services. I say to Mr Ryall who is trying to interject that it happened to be the policy of the parties that I have represented too. The new organisation will take the form of a Crown entity so that it can develop a strong commercial culture and build and maintain credibility with business networks. 
The board of New Zealand Trade and Enterprise will comprise seven members. The legislation allows for the use when necessary of special advisers to assist the board in aligning its strategy and activities with Government policy. Those special advisers are the Secretary of Foreign Affairs and Trade and the chief executive of the Ministry of Economic Development. The Minister for Trade Negotiations and myself as the Minister for Economic Development will together be responsible for New Zealand Trade and Enterprise. The Ministry of Economic Development and the Ministry of Foreign Affairs and Trade will be jointly responsible for monitoring and evaluating the new organisation and will provide advice to the responsible Ministers. The vote will be under the vote of the Ministry of Economic Development. 
The strategic goals of New Zealand Trade and Enterprise are to contribute to increased exports and investment in New Zealand by strengthening global linkages and targeted assistance; to enhance capabilities by providing information and facilitating access to skills expertise and resources; to contribute to a supportive environment for economic growth by fostering collaborative networks and partnerships by encouraging private and non-government sector economic development services and to improve coordination of assistance. 
New Zealand Trade and Enterprise has been created to give effect to Government policy. It will have to respond to the multiplicity of issues that a firm faces. It will act as a one-stop shop with a package of services. It needs to deliver a seamless service to work alongside firms regions and sectors. Most importantly of all New Zealand Trade and Enterprise needs to connect with its clients. The strengths of the two former agencies Trade New Zealand and Industry New Zealand will be carried forward into the new organisation. New Zealand Trade and Enterprise will provide integrated services across the business life cycle—from foundation services offering advice to young companies and entrepreneurs to enabling services for regions through to inward investment and growth services giving customised assistance to accelerate the development of potentially high-growth businesses both at home and abroad. 
I have recently returned from a visit to Australia where I met the Minister of Trade and in particular Queensland State development Ministers. I have to say that our cousin in Australia is extraordinarily aggressive in terms of attracting investment from both inside and outside Australia. However that reflects only the aggressiveness of many countries now lining up for skilled immigrants for investment in research and development and the development of their own industrial base. New Zealand has to be very smart in order to compete in the international marketplace. This organisation will assist in that development and the Government urges the House to give full support to the move we are making. 
At the conclusion of this debate I will move that the Commerce Committee consider the bill and that the committee be instructed to report back to this House by 28 April 2003.