By IRENE CHAPPLE
Fonterra head Andrew Ferrier threw down a challenge to the Government yesterday, saying it must intensify efforts to knock down trade barriers.
Ferrier, chief executive of New Zealand's biggest exporter, also made a plea for changes to the regulatory environment.
"I don't think I am talking out of turn by
saying we could use a little help here," Ferrier said.
"I am not talking subsidies or handouts. I am talking about having the best possible regulatory environment at home in New Zealand to support our competitiveness abroad."
He said areas of particular concern were energy pricing, transport and road user charges, employment legislation and the introduction of four-week holidays, the Kyoto Protocol and a lack of tax incentives for research and development.
New Zealand's business environment was seen as pretty good, but such areas affected Fonterra's base costs and capacity to add value.
"But at the same time," he said, "the international economy is the area where we most want to see an improved performance.
"While we are hammering away at improving our competitive position, it is equally vital the Government intensifies its efforts to hammer away at barriers to trade."
Ferrier said New Zealand needed to remain firm on the need to pursue multilateral agreements.
Fonterra, which generated 7 per cent of New Zealand's GDP, needed to "hold up the banner" for trade liberalisation, he said, but Government should also be urged to help.
The speech, made in Auckland to the American Chamber of Commerce, comes the day before Fonterra reveals its payout for the year, expected to be around $4.15/kg of milksolids for the season.
