Government help needed to keep head offices here

The Government should step in to try to prevent companies relocating head offices to Australia and help attract new ones to New Zealand, says Pumpkin Patch chairman Greg Muir.

He also said New Zealand was now effectively another state of Australia whether it liked it or not.

He was addressing a question about how New Zealand could retain head offices and management jobs, and perhaps attract new companies to set up here.

"The Aussie states are fighting against each other, arm-wrestling to attract business," said Muir, former managing director of The Warehouse. "We are in a competitive arm-wrestle with Australian states for head offices."

The Government ought to realise this and take action to retain head offices and senior jobs.

BNZ chairman Kerry McDonald pointed out that Britain had run a highly successful tax-intensive programme to attract head offices.

Muir cited aggressiveness and complexity as two major differences between doing business in New Zealand and Australia. Australian companies were more aggressive and would use any means to deal with a new competitor.

As for complexity, he said Pumpkin Patch had 12 different pay structures in Australia and only one in New Zealand.

Australian-based New Zealand businessman David Kirk said businesspeople looking to expand in Australia should make sure "the castle is strong at home" before heading across the Tasman.

Kirk, the managing director of printing company PMP, said people should know their own business thoroughly before exposing it to the more competitive Australian environment.