Hon Trevor Mallard
Minister for Economic Development

26 October 2006 Media Statement
Embargoed until: 2pm
Govt helps strengthen textile industry

The government will provide $1.96 million towards Kapiti-Horowhenua’s DesignTex project that aims to strengthen the region’s textile businesses and help them become more globally competitive, Economic Development Minister Trevor Mallard said today.

"DesignTex will link textile businesses in the lower North Island and New Zealand and help to build up their business expertise, improve production and stimulate investment in their industry.

"It will do this through five training programmes that will lift the industry’s business knowledge, foster leadership abilities, link designers with manufacturers, up-skill workers, and promote collaboration within the sector. A DesignTex Business Centre will also be established in the region as a focal point for the industry," Trevor Mallard said.

DesignTex is a partnership between textile, clothing, footwear, and carpet businesses in the Kapiti-Horowhenua region, as well as the Kapiti and Horowhenua district councils, Nature Coast Economic Development Agency and government economic development agency New Zealand Trade and Enterprise (NZTE).

NZTE will provide $1.96 million over three years from the government's Major Regional Initiative fund towards the project, which has a total cost of $4.364 million.

The textile industry has long been associated with the Kapiti-Horowhenua region and is one of its largest employers. The initiative aims to double the turnover of participating companies within five years, which in turn will boost regional growth and the national economy.

"While the textile industry has struggled at times in the past, the government believes it has a future. However, greater collective action is required to transform its global competitiveness.

"This project will help the industry form strategic relationships with a range of textile organisations, education institutions and other agencies in New Zealand to help companies become more market-led and design-led.

"It will also build relationships with textile industry leaders in the United Kingdom to develop a marketing gateway into Europe. This is all important work as we aim to transform New Zealand into an export-led, innovative and high wage economy," Trevor Mallard said.

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About NZTE and its Regional Partnerships Programme:
New Zealand Trade and Enterprise (NZTE) is the New Zealand government's national economic development agency. NZTE is a global organisation committed to improving the international competitiveness and sustained profitability of New Zealand businesses.
NZTE also has a regional network within New Zealand and works closely with local government, economic development agencies and other regional allies to grow their regional economic base, to identify and address barriers to growth, and to stimulate and develop new business opportunities.
The regional partnership programme provides support for regions to undertake major projects that build on their competitive advantages. Funding of up to $100,000 per region per three years for strategic planning, up to $100,000 per 12 month period for capability building and up to $2 million for Major Regional Initiatives per three year cycle is available to help regions realise their potential.
For more information: www.nzte.govt.nz

ENDS

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