$35m to find markets overseas

By LIAM DANN and ELLEN READ

Budget 2004 gives an extra $35 million over four years to New Zealand Trade & Enterprise to help exporters find markets and strategic partners.

A new market development assistance scheme will help small and medium businesses promote themselves in international markets.

The budget provides the scheme with $7.5 million for each of the next three years. Funding will then rise to $12.5 million each year from 2007-08.

In the first year, just $6.65 million will go directly to the businesses. The rest is for set up and administration costs.

Loosely based on an Australian scheme which refunds up to half of costs involved in marketing and exploring markets oversees, it will help businesses already in the export arena with the costs involved in expanding their orders.

The scheme is due to kick off in October. Key details such as the size limits of eligible companies, assistance thresholds and requirements for eligibility are still to be determined.

"Small and medium enterprises in particular will benefit from new assistance to help them to develop a presence in global markets," said Economic Development Minister Jim Anderton. "The market development assistance scheme will provide part-funding to help New Zealand businesses with trade promotional activities, overseas representation and marketing."

Employers and Manufacturers Association (Northern) spokesman Bruce Goldsworthy said if the Government wanted to assist individual exporters it would be a positive move.

"With trade shows, for example, they have previously insisted they'd only fund a group, so if they'll now help a single business then that's good," he said.

He was a little sceptical of how much practical use the fund would be, saying if the Government really wanted to help small and medium sized businesses it would introduce a staggered tax system.

"The whole [fund] smacks a little bit of micro management. Like getting back to the days of Muldoon with a little bit here and a little bit there," Goldsworthy said. "I don't think there are a whole lot of companies just sitting there waiting for the Government to come along and run their businesses."