Creating opportunities for small business - Bunkle
Hon Philida Bunkle
26 August 2000 Speech Notes
Address
to the Textile Institute 28th Annual Conference,
2000
Nelson-Marlborough Institute of
Technology
Nelson
Creating opportunities for small business
Good morning and thank you for the opportunity to visit a region of which I am very fond.
While there are
many places around New Zealand that I love to visit, Nelson
is one of my favourite homes away from home. Aside from the
appealing climate, the community here has proven its
willingness to lead the way both in domestic and
international fronts. Nelson is one of few places where
milk still comes in recyclable glass bottles.
Nelson
and the wearable arts show:
Nelson's internationally
acclaimed wearable arts show is a classic example of how we
demonstrate to the world that New Zealand is indeed a
vibrant and sophisticated nation. The show proves that we
have innovative designers and just as importantly textile
specialists.
Another example of this region's willingness to embrace innovative ideas is the persistence with which local businesses have lobbied government for years to recognise industrial hemp as a potential industry. I’ll touch on industrial hemp a little later.
Why government
needs to help transform the NZ economy:
I’m here to tell
you about this government’s goal of transforming the New
Zealand economy. By economic transformation I mean building
on our primary production strengths and moving into a more
value-added and knowledge based production. It also means
increasing the technological capability of business and
improving the conditions for innovation. It means greater
emphasis on exports.
I know it all sounds a bit much, but if we look at our economic history, there is a need for change. From the 1950s to the 1990s we slipped in GDP per capita from 9th in the OECD to 19th. In terms of economic performance, New Zealand is lagging behind the developed countries we want to compare ourselves with, yet at the same time we want a comparable standard of living and public services.
New Zealand’s per capita income was 95% of the OECD average in 1984 and in 1995 it was 87% and it’s still slipping. Our average incomes are falling compared to other countries. Seven dollars in every $100 we earn, goes straight overseas in the form of interest, profits or dividends. For the past 10 years government stood by and left the economic strategy thinking to the regions and businesses. The only element missing from that effort was government.
This Labour Alliance government has stepped up to fill that missing link. We want your ideas for new business. We want your ideas for expanding your business. We want your thoughts on how we can make business sustainable in economical and environmental terms. In return, this government will support you and help you create an environment that makes it possible for your business to grow.
What MED and Industry NZ has to offer:
The
economic transformation I referred to earlier works like
this: We give you our ideas to help you realise yours.
You may have heard of the new Economic Development Ministry
– and Industry New Zealand. It’s our idea of helping small
and medium sized businesses to grow.
Industry New Zealand
has programmes and strategies that will directly and
indirectly support the development of the textile industry
in New Zealand. There are three main threads to Industry
INZ.
Direct support for small and medium sized
businesses
Preparation and facilitation of
industry strategies
Direct support for regions
to enhance their economic strategies
These three threads will be supported by an events strategy and an IT strategy.
The textile industry like most New Zealand industries is made up of many small businesses. Companies like yours can seek direct support from the programmes that Industry NZ has to offer.
To give you a quick glance over
these "hand-up" business schemes this government has
developed three schemes:
1 The Enterprise Awards Scheme
grants up to $10,000 to businesses and entrepreneurs with
new ideas to expand their businesses.
2 The Investment
Ready Scheme provides business appraisal and deal broking
support to small businesses that need help attracting
investment capital
3 BIZinfo and BIZ training allows you
to get the information and training in skills you need to
generate growth in your business.
Industry NZ has an industry strategy that has three prongs – sectoral change projects, strategic projects and support for high growth potential companies. Currently Industry NZ has selected two sectoral change projects the first being forestry and national wood processing strategy and the other, a creative industries strategy. Both industries have significant potential for growth. We will look at others as the organisation grows and develops.
This government has recently announced a taskforce to develop a tourism industry strategy – hard to believe that it hadn’t been thought of before isn’t it?
Both the creative and tourism industry strategies have significant potential for your industry. Fashion is likely to be one of the major components of the creative industry plan. You know as well as anyone else that there is an unrealised potential in New Zealand’s fashion talent. Fashion combines artistic imagination and high quality workmanship. To realise that potential it needs to be underpinned by the textile industry. In other words, we need you to be involved in developing a strategy for creative industries. To help this occur I recently opened a fashionIncubator in Auckland’s fashion centre of High Street. This is a scheme that gives resource and mentoring assistance to young designers.
Likewise the tourism industry plan needs your input. I’m reminded of the Nelson Cultural Tourism Guide that features a broad spectrum of cultural activities including profiles on local pottery and textile craftspeople. People and companies featured in that excellent guide have had significant increases in sales and they have contributed to marketing this region in the best possible light.
Why stop there? The way is clear for Industry NZ and the textile industry to develop a strategy for growing textile opportunities. This must be locally based if it’s to be sustainable in the long run.
Hemp:
This government is determined to help your
business. Remember the industrial hemp lobby groups I spoke
of? This government has given its approval for work to
start on developing trial crops. We recognise the potential
for industrial hemp and we aren’t about to allow prejudiced
and ill informed panic merchants to stop us from testing
that potential. There is still a lot of work to be done but
we’ve sown the seeds if you’ll excuse the pun.
Events
Strategy:
Moving on to the whole-of-government approach
we have to developing industries like yours, I’ll briefly
describe our events strategy. Events can play a major role
particularly with your industry, where there is major local
appeal and the potential to attract international interest.
The wearable arts show is the example I used
earlier.
Fashion and craft shows are great examples of an industry including an events component. Industry NZ is still working on its events strategy and has started discussions with Trade New Zealand, Tourism NZ, and the Office of Tourism and Sport. It seems pretty obvious that these groups should be working together on a long-term strategy and again, it’s amazing to think that it hasn’t been done like this before.
Government
funding:
Our industries and economic development polices
are only just swinging into gear now. This year we
committed $33 million in new spending for these policies.
Next year that increases to more than $73 million and by the
year 2002/2003 it will be funded at a level of $112
million.
This government wants new partnerships with industries and business. That means you. We’re doing our part by putting money into programmes that will help you put your ideas to work, to help your business grow. The rest is up to you.
I’m sure the ideas and the innovation will be sprouting here this weekend. I look forward to hearing about them.
ENDS