Getting business ready for the single market

Michael Cullen (left) and Australian Treasurer Peter Costello. Picture / Mark Mitchell

New Zealand businesses sometimes fail at the first hurdle when they "cross the ditch" and set up business in Australia. But now governments on both sides of the Tasman are moving to create a "seamless" environment where doing business in Auckland should be little different from Sydney.

The Herald - which is co-partner in Thursday's Gateway to Australia conference with the Auckland Chamber of Commerce - talked to major players in the transtasman debate.

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On Thursday former Australian Prime Minister Bob Hawke will challenge New Zealand businesses to "Get Ready for the New Australasia".

The iconic former politician these days makes his living off the international speaking circuit.

Hawke is not giving anything away - refusing even to give any interviews on the proposal for a single market - before he gives his formal address.

But influential figures attending the conference will be looking to him for some plain speaking and a wake-up call to business to get on and make the most of the new environment.

Since the single market agenda was officially launched by the Australian and New Zealand treasurers there has been a plethora of working parties examining how to harmonise banking prudential laws, the competition environment and accounting standards so that businesses can operate in a seamless fashion across the Tasman.

It might sound gobbledegook - even "boring" as Australian Foreign Affairs Minister Alexander Downer jests - but the increasing integration of the two economies brings with it the need to ensure business' voice is heard on the regulatory changes.

The policy agenda is important. At the coalface it's a different challenge.

Whether for self-employed business people contemplating applying for their first Australian contract, small businesses making their initial foray into Australia, or those companies confronting how to arrange their tax affairs so neither they nor their transtasman employees are disadvantaged, it all comes down to the nitty gritty.

A line-up of New Zealand and Australian experts will share their winning strategies on how to leverage the new environment at Gateway to Australia. Topics range from high-level strategic issues through to practical advice on how to distribute products to the right channels to market.

Joining Hawke on the speaking line-up are: Michael Hill, founder of Michael Hill Jeweller; Australian marketing man Ralf Harding from STW Group; Paul O'Connor of Carter Holt Harvey's Australian Woodlogic business; Olivado's Jon Ellegard and Bax Global's Howard Claridge.

Business will be particularly interested in the pundits' predictions on how long the "golden weather" will last.

Australia and New Zealand have enjoyed lengthy economic booms. Australian Treasurer Peter Costello and Finance Minister Michael Cullen say the boom times are not yet over - but they concede economic growth will come back a peg.

Both countries share another problem.

Each is grappling with the challenges of skills shortages and how to achieve higher productivity rates - factors that despite Costello's comment ("this is not a bad problem to have" ) do impact on the ability of businesses to expand within Australasia.

The Australian Government plans a new wave of micro-economic reforms - particularly in the industrial and taxation arenas - to ensure Australia does not lose its competitive edge.

Prime Minister Helen Clark is frank that increased productivity is also a major goal for her Government. She is studying how Australia made its gains in this area and is particularly concerned at the higher levels of investment by Australian companies into their businesses compared with their New Zealand counterparts.

All business wants to know is that the gap between the two countries will be plugged.