Address to Allied Telesyn Ltd

I am very pleased to be here today. I am particularly pleased because it is always good to see more jobs and economic activity in my home town of Christchurch.

Yesterday I attended in Auckland the Government's Business Forum. There were 85 business leaders from around the country from a range of industries and sectors, and eleven Ministers. As you have probably seen from the media, we had a productive day of discussion and feedback.

Talk about outcomes of forum here

The message I took to the Forum was that we can, and we must do better – at a local, regional and national level.

I said yesterday…..
The economy is too dependent on commodities alone for our export income. We have to import too many of our capital goods.

This Allied Telesyn expansion is exactly the sort of development and innovation that new Zealand needs, and the Labour-Alliance Government supports. It represents strong relationships with countries such as Japan and the United States. It means substantial investment in our local economy. And it represents high value exports.

It is particularly significant that this industry is high wage, high tech, and high value.

I read an account in yesterday's Infotech weekly describing the Allied Telesyn expansion as a 'reverse brain drain'. I prefer to see it is a 'brain gain'. This sort of expansion creates jobs that trained New Zealanders will want, and will stay here to do.

I'm not buying into the new-economy/old economy argument. We need to develop our old economy by adding innovation: Finding new ways to process, package and market our meat, wool, dairy and timber products.

Chris Liddell of Carter Holt Harvey had an excellent commentary published in the New Zealand Herald on Monday. His argument was that in order to retain New Zealanders, and build our economy we need to become the best little country in the world.

To do that we obviously need a strong, diverse economy. One where skills, talent and creativity can be developed. Where there will be rewards for success and for skills. Where those who try will be encouraged and supported. Where working people can look forward to rising real incomes.

We need a country that is confident in its own unique culture. We need to see New Zealand performers on the world’s stages. We need to be proud of what we do and the unique, distinctive way we do things. After all, who we are and where we are is what makes us different, and it's these differences that are the seeds of New Zealand's future success.

We need far more scientists, engineers and designers. And I know that this is exactly the sort of work that Allied Telesyn is promoting. We need far more pure research and we need research linked specifically to commercial opportunities. We need tertiary institutions much better equipped to meet the teaching, learning and research needs of New Zealanders.

To help achieve these goals you will be aware that this Government is promoting economic development. And it is a major plank of government policy.

The Ministry of Economic Development and Industry New Zealand have been established to take a partnership and a whole-of-government approach towards our economy.

In real terms this means Government is rolling its sleeves up to assist businesses to grow. That means making grants and partnerships available, and helping regions to specialise in particular industries. It also means encouraging investment in local business.

Making the most of what regions have is particularly relevant here today.

The high tech industry is a regional specialisation for Christchurch.
I know that the Canterbury Development Corporation has talked of Christchurch as the Silicon Valley of the South Pacific. We are open to hearing of ways that government can support the infrastructure to make this happen.

One area that business has talked to government about is research and development. R&D is critical to New Zealand's future. Companies such as Allied Telesyn are in the forefront of ensuring New Zealand is better positioned to develop our scientific and technological capabilities.
In the budget the Government contributed the greatest percentage increase in research and development funding ever for New Zealand, amounting to $43 million extra, almost half of which goes direct to the private sector.
Yesterday Government announced that we intend to make all research expenditure and most development expenditure immediately tax deductable.

There is no shortage of innovation and good ideas in New Zealand. We are now attempting to ensure that the government plays its part. It's not a matter of the government doing it all. It is a matter of working together.

This Allied Telesyn announcement is great news. It is a vote of confidence in New Zealand, in Canterbury, and in our engineers and high-tech industry.

As has been outlined this expansion will, eventually, create 250 jobs, and significantly boosts the local region as well as the national economy.

I want to thank you again for inviting me here to be part of this significant opening.

And now Mr Takayoshi Oshima, the chairman and CEO of Allied Telesyn International and I will cut the ribbon into the new building.

Cut ribbon.