Our real economic challenge – making the pie bigger

The issue for the Government this year is not just to borrow and spend less. New Zealand also desperately needs an economic development response – “It’s about diversifying and building the economy – making the pie bigger,” said Auckland Chamber of Commerce head, Michael Barnett.

He was responding to Prime Minister John key’s announcement that this year’s Budget will focus squarely on savings and investment.

“The focus urgently needs to be put on a campaign to get every New Zealand business to look at options to either get into exporting, or if they already are, to lift their game.”
Statistics show that less than 3% of New Zealand’s more than 550,000 businesses are regular exporters. That is how it’s stayed for many years, despite an Export Year campaign a couple of years ago.

If government agencies like Trade New Zealand had been doing their job properly over the last few years, we could have had a whole new tier of New Zealand companies building measurable success in terms of foreign exchange earnings and increased employment.

Every firm in New Zealand is capable of growing. Every industry sector is capable of taking a bigger share of world markets. Every exporter is capable of doing more; and, every employee from the shop floor to top management has the potential to lift their performance.

“What is required are creative ideas to make this happen, supportive Governments and Government agencies and incentives to change rapidly what we have been plodding away at for years.

“If what we have been doing was right, we would have lifted our game as a country, we haven’t so it’s time for new thinking backed by action.

“I applaud the Prime Minister for today’s challenge to his Ministers to balance the books more quickly.

He should also be challenging them – and every Government agency – to come up with practical incentives to help and encourage business to sell more to the rest of the world.”