Government sets aside $100 million for exporters

Pete Hodgson announces additional help for Kiwi businesses and a continuation of a successful public private export group.

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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. "