Australian economist woos NZ businesses

By ELLEN READ

Good retail demand and a strong manufacturing sector across the Tasman mean now is a good time for New Zealand manufacturers to expand or sell into Australia.

Tony Pensabene, a senior economist with the Australia Industry Group - the Australian equivalent of Business New Zealand - made a whirlwind tour of the country this week preaching that Australian good news story.

He said the Australian economy should hit a cyclical peak around the middle of this year and that manufacturing would follow a similar growth path influenced by housing demand and exports.

Singled out for particular attention were New Zealand food and wine, timber products and car components, which Pensabene said could be especially successful in Australia.

Component supply for the IT and telecommunications sector was also a growing area, he said.

Asked why Australia would be receptive to firms from its traditional sparring partner, Pensabene said governments around Australia were always keen to welcome new firms.

"If we want to grow the economy, we need to encourage all business. They will employ people and provide investment. We need to take advantage of all opportunities," he said.

Although he had heard some grumbles about Australia's tighter regulatory environment, Pensabene said the feedback had been positive.

Also outlined were some of the incentives Australia could offer local companies, such as tax incentives and rates rebates