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Home / Business / Economy

Government wheels out big guns for export drive

Owen Hembry
By Owen Hembry
Online Business Editor·
30 Nov, 2006 06:49 PM2 mins to read

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(from left) Phil Goff, Trevor Mallard, Winston Peters and Prime Minister Helen Clark at the launch in Auckland. Picture / Glenn Jeffrey

(from left) Phil Goff, Trevor Mallard, Winston Peters and Prime Minister Helen Clark at the launch in Auckland. Picture / Glenn Jeffrey

KEY POINTS:

The Government rolled out its big guns in Auckland yesterday to unveil a cash boost for companies wanting to develop exports.

Prime Minister Helen Clark, flanked by Foreign Minister Winston Peters, Trade Minister Phil Goff and Economic Development Minister Trevor Mallard, said the Government would stump up an
extra $33.75 million as part of yesterday's launch of Export Year 2007.

Bruce Goldsworthy, of the Employers & Manufacturers Association Northern, said the ministerial front was an indication of Government commitment.

"We've got to welcome the fact that they've acknowledged that the scheme is working, that it's been underfunded and they're endeavouring to put it right," Goldsworthy said.

"That's real good news for a lot of exporting companies."

However, Goldsworthy - who sits on a private sector advisory group to the Export Year 2007 initiative - questioned whether eligibility rules excluded companies with the biggest potential to grow.

Firms could apply for up to $100,000 of one-off funding provided their turnover was no more than $50 million.

But he added that removing the cap to fund large companies could mean smaller ones missed out.

Firms with turnover of more than $50 million could still access funds provided they help smaller companies undertake sustainable market development activity.

One company that has benefited from the scheme is global positioning system firm Navicom Dynamics.

General manager Peter Selwyn said, because of the support, the firm had been able to travel to Singapore, Italy, UK and Cuba.

"We are a very small turnover company," Selwyn said.

"We simply don't have the capital to go to these places without assistance. It's totally vital."

The ministerial pack was at Auckland showerware and tap manufacturer Methven, which the Prime Minister said was a model for others heading on the export path.

"The idea is, if we can get more companies in, picking up the grants, getting the export bug, seeing where the markets are, they'll fly," Helen Clark said. "Improving our country's export performance is critical for the future prosperity of all New Zealanders.

"For the economy to develop and transform, it is essential we have more globally competitive, high value firms and increase our export returns."

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