Business gets wish for one trade body

The Government has confirmed plans to merge Trade New Zealand and Industry New Zealand.

The move was forecast in the Business Herald last month, after the speech from the throne said their operations would be progressively integrated.

A new organisation is expected to be created by next July and will integrate the business and export development services of each of the two existing bodies, said Trade Negotiations Minister Jim Sutton and Economic, Industry and Regional Development Minister Jim Anderton.

Industry NZ's ministerial briefing papers, released last month, said the boards of the two organisations were keen to make rapid progress on a merger.

The chairmen of the two organisations had written to Anderton recommending such a move, the papers said.

The investment arms of Trade NZ and Industry NZ have already been merged to create a single body called Investment NZ, within Industry NZ.

Anderton and Sutton said the decision came in response to business calls for a single point of contact, and promised to consult the business community on the shape of the new body.

Business NZ chief executive Simon Carlaw said there was a good case for bringing the two together.

"There should be a much more direct focus on the development of New Zealand's export capacity," said Carlaw.

"Our export performance, certainly by comparison with other small countries in the OECD, has been abysmal and that growth needs to occur not just from existing exporters but by growing new exporters, and bringing those two arms together should, in principle, facilitate this."

But the structure, funding and culture of the new organisation would be critical, as would relationships with other agencies such as the Ministry of Foreign Affairs and Trade and the Ministry of Economic Development.

"There is no point in trying to grow empires here," said Carlaw.

"Trade NZ has done a pretty good job with the resources made available to it. I would like to see a very strong emphasis on value for money and I would have reservations as to whether that can yet be demonstrated in the case of Industry New Zealand."



Trade NZ was set up in 1988 as the Trade Development Board.

Industry NZ - often described as Anderton's "jobs machine" - was set up in October 2000 to implement the Government's business, industry and regional development policies.

Trade NZ has about 400 staff in this country and has 38 offices overseas, though not all are staffed. Industry NZ has about 120 staff.

- NZPA, STAFF REPORTER