We've set a goal of lifting New Zealand's export economy from 30 per cent to 40 per cent of GDP by 2025 and New Zealand Trade and Enterprise (NZTE) is the government body that works with New Zealand companies to boost their trade overseas.
Closer to home, we have many companies that are performing extremely well in overseas markets and, the more high quality trade agreements we can sign, the better off they will be. Last week, I visited a number of these businesses that have been assisted by NZTA, including Zespri, Page and McRae, Avanza and Verda International.
At Zespri, they said the industry was emerging well from Psa disease and, with new varieties of high-yielding vines, they are seeing good growth. There is more kiwifruit produced in the Rotorua electorate than almost any other electorate in the country. This is important as NZ kiwifruit goes into 50 countries and makes up 30 per cent of the world's traded kiwifruit volume.
Local growers have welcomed the news of the recently concluded Korea FTA. The 45 per cent tariff on kiwifruit will be eliminated five years from the agreement coming into force, putting around $8500 in the pockets of the average kiwifruit grower every year. That's money they will spend in the local economy.
In Rotorua, other companies will benefit from our work on high-quality trade agreements. Verda International, which manufactures and markets quality outdoor wood products such as decking, fencing and furniture, supplies markets in France, Japan, Australia and the Pacific. Reduced duty rates for processed timber will mean greater access for wood products to lucrative foreign markets and Rotorua is well placed to benefit from this.
Page and McRae is a family-run engineering business. They have extensive experience in power generation, bulk cargo handling, ship repair, food processing and water treatment. They have successfully sold into the Australian maritime transport industry and into the Canadian forestry industry.
Like Rotorua companies, Patchell Industries, Hayes Engineering and Roadmaster, they have invested heavily and are now producing high quality, high value products for the domestic and intentional markets. These companies employ hundreds of people and are experiencing growth in both demand for their products and in their workforce. The Government is committed to helping solid New Zealand companies like these grow and prosper, and good international trade agreements are an important part of this story.
We have committed more than $65 million so that NZTE can help grow thousands more New Zealand companies. If you have a business that would like to be considered for NZTE support, you can find more information on their website, http://www.nzte.govt.nz. Or give my office a call - we'd be happy to help.
