Year's exports boosted by $1.7b, says Trade Board

By Yoke Har Lee

The New Zealand Trade Development Board (Trade NZ) says it has boosted export earnings by $1.7 billion in the past year.

"This is enormously higher than we anticipated and should be qualified by saying that it undoubtedly includes 'catch up' which our clients reported from previous years," chairman Joe Pope and chief executive Fran Wilde said in the latest annual report.

The 1999-2000 annual result would be the real test, they said. "It should be noted that even if the annual figure were 30-50 per cent less, that would still be a good result for taxpayers, for whom the Government invested $54 million in 1998-99."

The audit system was based on one used by Austrade - the Australian equivalent of Trade NZ - adapted for New Zealand use.

During the year reviewed, exports totalled $21.76 billion, with Australia being the largest market, followed by the United States, which overtook Japan's spot.

Trade NZ has an annual operating budget of $54 million.

For the 1998-99 financial year ended June 30, its New Zealand operating expenses were $24.08 million while its overseas operating expenses were $30.76 million.

Export networks spending was $6.18 million, aimed at helping companies research overseas markets or gather market intelligence.

Trade NZ's annual report also provided details of three benchmarks it used to rate itself.

In its international business consultancy segment, Trade NZ's clients gave it a satisfaction rating of 68 per cent, against the board's target of 85 per cent and the 1997-98 rating of 90 per cent.

In promotion of exporting, clients gave Trade NZ a rating of 70 per cent in the 1998-99 year, against 93 per cent in the previous year and a target of 85 per cent.

In export capability development, details were given on the number of projects undertaken but client satisfaction was not measured.

Looking towards the future, Trade NZ said the country could work on building exports by:

* Building on the opportunities in the biotechnology industries due to the traditional pastoral base and isolated physical environment.

* Using the New Zealand time zone to offer services such as analysing information and processing customer data throughout the "night" for clients overseas.

* Focusing on sophisticated, high value, niche manufacturing which can be easily transported and is competitive across the globe.

* Providing services, relying on intellect and creativity, ranging from software to consultancy.

Ms Wilde said that well over half of New Zealand's export earnings still came from primary products.

This made New Zealand vulnerable to fluctuating international prices and demanding market conditions.

She said that over the past year Trade NZ, which recognised the need for changes to the export component, had begun moving more resources into value-added, knowledge-rich sectors, including software, telecommunications and education services.

Over the past year, Trade NZ assisted more than 60 telecommunications and electronics companies.

This number was expected to rise as the industry stretched into South America, the US, and Asia.

Recognising the important role e-commerce played in the global economy, Trade NZ was also offering more services over the internet.

Subscribers to MarketLink, an on-line market intelligence service, have reported about $50 million in sales as a result of the service.