Building up our market development capability

Enhancing New Zealand Trade and Enterprise's ability to facilitate more market opportunities for New Zealand companies is an important part of the Government's focus, Trade Negotiations Minister Jim Sutton said today.

Mr Sutton announced the Government intended to allocate up to $10 million a year extra to NZ Trade and Enterprise for the next three financial years, rising to $12 million a year in 2007-2008 and subsequent years.

The extra funding, set aside as part of the 2004 Growth and Innovation contingency funding, would be used to strengthen NZ Trade and Enterprise's global network. This would enable it to assist more effectively local industry to develop and execute successful international market development strategies.

Mr Sutton said the proposed funding will pay to:

• Upgrade NZTE's global IT network and communications infrastructure;

• Upskill the existing global network ? for example, to ensure staff have more of the necessary strategic and commercial skills, and to ensure greater foreign language ability; and

• Increase interaction between NZTE's onshore and offshore arms. This will help NZTE take its understanding of NZ capability to global markets, and take its knowledge of international trends and demands to NZ businesses.

Mr Sutton said a recent review of NZTE's global activities emphasised the importance of stronger connections between NZ businesses and leading world businesses in the same sectors.

"With better international connections, New Zealand companies will be better placed to extract benefits across the "global value chain", that is, from initial development of ideas through to production, marketing and sales. It will also give New Zealand better access to investment, as well as to the world-class technology, knowledge and skills that can improve living standards."

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