KEY POINTS:
New Zealand business has a prime opportunity next year to to "leap forward' on the international trade and investment scene.
Previous Government-backed attempts to create a swag of "world-class" companies within a short space of time have foundered on their own hype. Who talks now about the 100
$100 million companies in 10 years target that so excited businesses during the first wave of the innovation mania of the early 2000s?
The original ambition remains laudatory. There is no shortage of local backers or mentors to help our budding entrepreneurs, but there is still a real shortage of the strong drive that will spur entrepreneurs to build their companies into true New Zealand-based multinationals, instead of selling out to Australian private equity players, pocketing the windfall profits and going to the beach.
That behaviour is entirely rational given the over-priced offers some private equity firms make. But New Zealand needs more ambitious entrepreneurs to follow in the track established by the Business Herald's Businessman of the Year, Lloyd Morrison.
Tackled well, 2007 could be productive.
First up, the Government has officially designated it "Export Year". Already the goodies are flowing, in the form of a $33.75 million boost to the market development scheme, which helps businesses establish themselves overseas.
Government largesse will be increased when Finance Minister Michael Cullen announces export tax breaks or incentives as part of the Business Taxation Review.
Cullen's tax policy co-author, Revenue Minister Peter Dunne, is banging his drum for a 30 per cent rate for company, top personal rate and trust taxation.
But Cullen has always seemed more disposed to making tax assistance available to businesses that will bring in more foreign exchange through increased exports rather than giving a handout to the Australian owners of major New Zealand businesses through sizeable cuts to the 33 per cent company tax rate.
He also has a ready rationale (if he needs it), in our dire need to increase exports to help counter our teetering current account deficit.
It is difficult work establishing export markets from New Zealand, but already the signs are that business organisations - which sport many members from the smaller businesses that make up the 85 per cent of New Zealand companies - are getting excited.
It would be easy to be cynical about the "New Thinking" branding which Trade and Enterprise is using to cloak a raft of export-focused programmes. But for businesses struggling to establish themselves overseas, the Government assistance can't come soon enough. Their appetites will be whetted during "New Thinking Week" in March when 12 industry-led events will take place. These range from biotech and creative sector events, through to the NZ Beachheads programme, the World-class Awards and a NZ Exports Summit.
Secondly, the internationally focused business group that I have been promoting for some years is expected to launch early in the new year.
Stephen Jacobi - the former trade diplomat and former chief executive of the Trade Liberalisation Network - is advising an establishment board led by John Maasland and Tony Nowell. Already, key primary sector figures such as Fonterra chairman Henry van der Hayden, Mike Petersen of Meat and Wool, Rob McLeod, chairman of Aotearoa Fisheries, and Graeme Harrison, who chairs Anzco, have lent their names to the proposed organisation.
Key players from other internationally focused companies are expected to join the board of what's now called the International Business Forum when it is unveiled in February.
Expectations are that the forum will be a partnership, with some Government funding to match private business sponsorship. It will tackle the realities of the Government's post-Doha Round strategy to ensure business opportunities are maximised during a period when little is expected from the World Trade Organisation.
Jacobi has identified other critical issues, such as New Zealand's need to position itself well as Australia moves to open free-trade negotiations with Japan. High-level international advocacy is also a priority.
Third, 2007 is Australia's turn to host Apec, and signs are that next year's meeting will focus on issues such as the environment, as well as the Asia-Pacific trade liberalisation agenda. Australia is already signalling it will run the ruler over the individual action plans that the 23 Apec economies have agreed to for reducing trade impediments within their own borders.
New Zealand's three representatives on the Apec Business Advisory Group want to ensure more New Zealand business leaders make valuable contacts by taking part in the chief executives' summit that adjoins the main leaders' meeting. They're also hoping to demystify the trade gobbledegook that cloaks Apec.
Fourth, 2007 is New Zealand's turn to host the second United States New Zealand Partnership Forum.
The forum has been deliberately timed for September 10-11, to coincide with the Australian Apec leaders' meeting. Expectations are that this will provide an opportunity for some serious US big-hitters to make it to Auckland.
US Ambassador Bill McCormick has put in a bid for US President George W. Bush to call by while he is in the neighbourhood. US Secretary of State Condoleezza Rice is also a potential starter.
The forum - hosted by the US-NZ Council - is expected to have a strong focus on partnering for innovation - not just in business, but also in trade and foreign policy.
After a year dominated by post-election scandals which have seriously affected this country's image, there is now a chance for New Zealand to get itself back on the front foot internationally.
* Disclosure: Fran O'Sullivan is a director of the US-NZ Council.