The Government and the University of Waikato are investing $13 million in a new research programme in Tauranga aimed at helping tackle some of the biggest issues facing New Zealand’s primary sector, Education Minister Chris Hipkins announced today.

Minister of Foreign Affairs Winston Peters will travel to China this week for a formal meeting with his counterpart, China’s State Councillor and Foreign Minister Wang Yi.

Foreign Affairs Minister Winston Peters reaffirmed the Coalition Government’s commitment to restoring lost capacity in New Zealand’s Foreign Service today, announcing a significant increase in funding for the Ministry of Foreign Affairs and Trade.

An inclusive and comprehensive review of dairy industry legislation will help our biggest export sector get in shape for the future, says Minister of Agriculture Damien O’Connor.

The Government has released the terms of reference for a review of the 17-year-old Dairy Industry Restructuring Act 2001 (DIRA), which regulates Fonterra to protect the long-term interests of farmers, consumers and the wider economy.

“The Ministry for Primary Industries will consult widely throughout the review, including surveys and formal consultation later in the year and I encourage you all to get involved and have your say,” says Damien O’Connor.

“The review will allow us to take a strategic view of issues facing the dairy industry.

“In particular it will look at open entry and exit for farmers, the raw milk price setting process, contestability for milk, the risks and costs for the sector, and the incentives or disincentives for dairy to move to sustainable, higher-value production and processing.

“The whole dairy sector needs to look ahead to see what trends and potential disruptions are coming our way and get ahead of consumer trends.

“Only through a frank appraisal of the issues will we come to the right conclusions.

“In December last year I announced this Government would review DIRA as a matter of priority, in February we rolled it over to stop certain parts expiring, and today I release the terms of reference setting out the objectives, approach and timing of the review.

“The dairy industry will be fully consulted throughout the review so that any issues can be given full consideration before any changes happen.

“I look forward to receiving feedback from farmers, dairy processors, consumers and the wider public in the upcoming consultation process.

“A high-performing, innovative and sustainable dairy sector is vital to New Zealand’s economic wellbeing,” says Damien O’Connor.

Find the terms of reference here www.mpi.govt.nz/DIRA-review

A beehive release  ||  may 09, 2018   |||

Our ability to negotiate the best trade deals in the interests of all New Zealanders will be strengthened by a significant funding boost for the Ministry of Foreign Affairs and Trade, Trade and Export Growth Minister David Parker said.

“This is an investment in the jobs and businesses that rely on exports. Facing threats of increasing barriers, New Zealand needs to fight harder than ever for open and free trade,” David Parker said.

Economists at MFAT estimate more than 620,000 workers, one in four, derive their livelihoods from exports.

“Those exports ensure we can earn the income that allows us to import the medicines, cell phones and vehicles that we do not make at home,” David Parker said.

But a rise in protectionist sentiment around the world and recent talk of trade wars make it more important than ever that New Zealand’s independent voice is heard and its diplomatic and negotiating presence is enhanced.

“It will also mean more resources to help us uphold existing rules in the WTO and work directly with our free trade partners.”

Foreign Affairs Minister Winston Peters has announced an operating expenditure increase of $150.4 million over the next four years, and an additional $40.3 million in capital expenditure. That will allow for an additional 50 foreign policy positions and the reopening of an embassy in Stockholm, Sweden.

The Government has an extensive negotiating agenda which requires more resources to deliver the best results for New Zealanders.

That includes the Regional Comprehensive Economic Partnership, involving 16 countries with a total GDP of US $23 trillion, the Pacific Alliance trade bloc of Mexico, Peru, Chile and Colombia and making the case for a deal with the Mercosur free trade grouping of Brazil, Argentina, Paraguay and Uruguay.

It is also hoped negotiations will start soon with the EU, which is our top trade priority.

At the same time we will be implementing – and possibly expanding – the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

“The Government has launched its progressive Trade for All agenda that recognises trade must benefit all, including small businesses, women and indigenous groups.

“Having an adequately-resourced ministry at home and internationally will contribute to the well-being of all New Zealanders,” David Parker said.

A beehive release  ||  may 08, 2018   |||

The Government is disappointed New Zealand has not been included in the announcement by President Trump on exemptions from steel and aluminium tariffs, Trade and Export Growth Minister David Parker says.

The Government is disappointed New Zealand has not been included in the announcement by President Trump on exemptions from steel and aluminium tariffs, Trade and Export Growth Minister David Parker says.

Key parts of manufacturing are moving beyond commodities into value-added products, a new report released today by Economic Development Minister David Parker shows.

The 150 page report, Beyond Commodities: Manufacturing into the Future, is the most comprehensive on New Zealand manufacturing to be published in a decade.

It was launched at the Manufacturer’s Forum hosted by EMA, in association with the Manufacturer’s Network and Callaghan Innovation.

“This report shows the huge diversity of manufacturing in New Zealand, from core household goods like cleaning products, to building products, furniture and steel,” Mr Parker says.

The report also identifies a number of challenges for manufacturers, including difficulty finding skilled tradespeople and a lack of scale relative to international competitors.

“The continued lack of productivity growth remains troubling and limits opportunities for development,” Mr Parker says.

“Manufacturing is crucial to boosting jobs and growing our exports, particularly where New Zealand enjoys a comparative advantage. The sector’s potential is clear and we need to devote more of the country’s resource it.”

“The Government’s Tax Working Group and reforms we are making to the Reserve Bank Act are important steps on the path to a more productive economy.”

A key finding in the report is the degree to which production and export of high-value products is starting to gain real traction. Medical equipment, pharmaceuticals and agritech machinery and systems collectively generate $1 billion of exports. Infant formula and innovative foods such as nutraceuticals are generating double digit growth.

The report, part of the Sectors Reports Series, confirms that manufacturing will continue to play a major role in the economy, particularly in the regions.

Manufacturing provides 221,000 jobs, generates $36 billion in exports, and spends $670 million on research and development.

“Manufacturing has borne the brunt of changing global dynamics and these changes have resulted in increased competition for Kiwi firms.

“However, the globalised economy has also increased opportunities for local firms to target valuable niches,” Mr Parker says.

“Value-added products can offer higher returns and efficiencies for New Zealand businesses and allow for more productive land use with a lower impact on the environment.”

The report will help provide the information government and industry needs to adapt to emerging domestic and global opportunities.

The report is available at: www.mbie.govt.nz/manufacturing

{ A Beehive release }  ||  April 17, 2018   |||

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Apr 12 - The government is seeking to head off criticism of its decision to stop granting offshore oil and gas exploration permits by talking up the potential for a major oil and gas find in the Barque prospect, off the Canterbury coast

Regional Economic Development Minister Shane Jones welcomes the opportunity to work with New Zealand’s energy sector as the country begins a just transition to a low carbon economy.

The Government has today announced no new permits for offshore oil exploration, limiting block offer 2018 to new onshore acreage in Taranaki. However, existing permits will not be affected, which was the priority of New Zealand First in negotiations.

As is the normal practice, existing permit holders will continue to be able to apply for permit extensions and change of conditions in line with New Zealand Petroleum and Minerals protocols.

“Last week I launched the Taranaki Regional Economic Development action plan, which identifies ‘four futures’ for the region, including energy,” Shane Jones said.

“The initial money the Provincial Growth Fund (PGF) committed to investigate establishing Taranaki as an internationally recognised leader in clean energy technology is an example of the collaboration needed between Government and the energy sector going forward.

“I was heartened by the conversations I had with various stakeholders, who show a genuine willingness to lead the way and seize the opportunities that the transition provides us with.

“The block offer does not affect any jobs that are already there. New Zealand First’s support is predicated by its commitment to protect the rights of existing permit holders to ensure certainty for all of those in the industry that currently hold exploration, prospecting and mining permits – these permits continue as far out as 2046.

“With ten years’ worth of natural gas consented, plus potentially billions of dollars of natural gas reserves permitted but yet to be consented, we can ensure economic returns and security of supply.

“With a long-term plan, we can protect jobs and provide the time needed for economies that have traditionally relied on fossil fuels, such as Taranaki, to diversify and future proof.

“The just transition will not happen overnight so there’s no need for scaremongering and, while it will undoubtedly pose challenges, it also provides opportunity through investment in new technology and new industries.

“I’ll be working to ensure our regions are supported to tap into these opportunities and will be encouraging clean energy proposals that meet the criteria of the PGF,” Shane Jones said.

| A Beehive release  |  || April 12, 2018   |||