Government sets aside $100 million for exporters
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New Zealand businesses will find it easier to grow their new offshore markets under a $100 million scheme announced by
Economic Development Minister Pete Hodgson this morning.
Speaking at a breakfast to launch the Export Year Platform for the Future document and to reflect on the activities of
Export Year 2007, Pete Hodgson said,
"Export Year 2007 has set new levels of export ambition for us. Part of that is removing barriers that our businesses
might encounter as they take Kiwi enterprises to the world."
On 12 November 2007, Cabinet agreed to the New Zealand Export Credit Office offering two new products: a broader
contract bond guarantee and a targeted short-term working capital guarantee. These guarantees will be provided to
commercial bond providers and banks to enable them to support the additional growth of successful export companies.
A $100 million contingent liability has been established for exporters needing bonds and/or working capital. Access to
the money will be on a first come, first served basis, but as the guarantees expire, the funds will be accessible once
more, so the facility will be revolving. In addition, the Labour-led government has the flexibility to increase the
facility in the future if demand for this new product is larger than anticipated.
These new products are targeted solutions to a specific gap in the market for the provision of trade finance and risk
management, as an Export Year 2007 initiative. Both of these products will be operational from April 2008. For further
information please refer to the NZECO website: www.nzeco.govt.nz.
Pete Hodgson also announced that the Export Year Private Sector Reference Group will continue to operate beyond Export
Year.
"This Group is well placed to 'hit the ground running' to take the lead in championing the ongoing work of the private
sector as set out in the Platform for the Future document. The challenge we now face, and what the Platform document
encapsulates is making sure that the achievements initiated during Export Year 2007 are just the beginning. I am pleased
to say this Reference group does not lack ambition internationally. "
ENDS