$2m Trade NZ help for exporters

A Trade New Zealand programme worth $2 million annually would help companies establish bases overseas, Prime Minister Helen Clark said today.

The figure was released in yesterday's budget but Miss Clark today gave more details of the programme in a speech to a post-budget lunch at the Auckland Chamber of Commerce.

Miss Clark said $2m a year had been allocated to the "Beach Heads initiative" from 2002/03.

Traditionally, New Zealand companies looking to get into export markets had a domestic base but in the information technology sector, products or services had little, if any, domestic market.

"In this sector, speed to market is a paramount consideration. Six weeks is often the time cycle."

Trade New Zealand was receiving increasing requests from clients wanting assistance in establishing "their first beach head in the market".

"Although modern communication assists, there is no substitute for being face to face with customers especially when the global market is crowded with competitors from around the world," Miss Clark said.

The new initiative would give companies an initial platform in some key markets.

"They will be able to move into a fully wired office, clustered with other similar New Zealand companies, and have the assistance of a local person with the contacts and networks to assist them to find the right partners."

Initial establishment costs would be minimised "because they will not need to sign up to long term leases of expensive real estate".

They would get advice about appropriate services -- for instance legal firms -- and they would be able to brainstorm with other New Zealand companies "sharing mistakes and successes," she said.

Trade New Zealand was establishing the first of these beach heads in partnership with the Singapore Economic Development Board.

Further possibilities were being investigated in the United States and Britain.

Trade New Zealand was ready to move when the funding was available in the next financial year.

Miss Clark said she had been impressed on a visit to Korea last year by the Korean government's support of business incubators for companies off shore.

- NZPA