Trade-Industry merger comes closer to reality

By KEVIN TAYLOR

A merger of Trade NZ and Industry NZ is looming after the Government said the operations of the two organisations would be progressively integrated.

The announcement came in the speech from the throne delivered by Governor-General Dame Silvia Cartwright at the opening of Parliament on Tuesday.

The Business Herald understands the boards and senior management of the two bodies have met recently to discuss merging.

A spokesman for Economic Development Minister Jim Anderton said they were waiting for more advice on a merger from the two boards, and that was due in October.

Any decision to merge the two organisations would be made by the Cabinet.

Industry NZ, hailed as Anderton's "jobs Machine", was set up in October 2000 as New Zealand's first national economic development agency, to deliver business and regional development initiatives.

Trade NZ, with 384 staff and 46 offices in New Zealand and overseas, is three times larger than Industry NZ, which has about 120 staff.

Industry NZ's ministerial briefing papers, released yesterday, said the boards of the two organisations were keen to make rapid progress on a merger.

The chairmen of the two organisations had written to Anderton recommending the merger, the briefing papers said.

An Industry NZ source said many countries had agencies with integrated domestic and export functions, and a merger with Trade NZ was seen as making sense.

"Both organisations realised there were some overlap areas. They have both come to the point where they are doing some work on it."

The push for a merger comes after the investment arms of Trade NZ and Industry NZ were fused last month to create a single body called Investment NZ within Industry NZ.

The new investment promotion agency was announced in the Budget and the briefing papers said steps were now being taken to appoint a general manager.

Neither Trade NZ chairman David Moloney nor Industry NZ chairman Mike Andrews could be reached yesterday for comment.

Trade New Zealand chief executive Fran Wilde declined to comment.

In the speech from the throne, the Government said that in addition to integrating the two bodies, support for trade missions and delegations would be boosted.

"These will be the first steps in a more active export promotion programme."