"Learning For Better Business"

OTAGO/SOUTHLAND DIVISION
NEW ZEALAND NATIONAL PARTY
ANNUAL CONFERENCE
Abbey Lodge, Dunedin

What terrific priorities you people have. The Highlanders are playing the Reds in Brisbane tonight, and you're here considering the future of New Zealand.

Can I thank you for your tremendous support through 1998.

What a tough year it was for us all.

Many of you have been through a second year of droughts. Both financially and personally, they have taken a toll on the whole region.

Gavan, Eric, Alec and Bill have briefed our colleagues regularly on the situation the people of Otago and Southland have faced. I have overwhelming admiration for the farming families and businesses as they have coped with all that has come their way.

The Government, too, faced hard challenges in 1998. The Asian financial crisis forced us all to re-think and to adjust. On behalf of all New Zealanders, we had to cut our cloth to deal with the times. We managed that and we dealt with the break-up of the Coalition and the formation of a new National Minority Government. And we've made it work.

You took hard decisions. We took hard decisions. I am pleased to say that all the reports and indicators tell us a steady recovery is now gathering strength. There are reasons for confidence and optimism.

Through all of this, the Government has delivered stable economic and political conditions. Pleasingly, New Zealanders are now benefiting from this. The majority of New Zealanders support us going right through to a November election.

I'm proud of National members' performance. I also acknowledge other political parties and their leaders who work with us and contribute to stable government in New Zealand.

Emerging prosperity is the dividend that will flow from our recent efforts. We all feel more secure and confident as a result.

National people are builders. We are 'can do' people.

Out of the crisis of the early 90s we've built a country capable of coping with the shocks that the international marketplace can dish up.

Our attitude, our good management and our economic framework helps us do that. We do it well.

Prosperity and security are the benefits that flow from it. But they don't just happen. They would not be possible if this Government hadn't delivered. They can't be guaranteed unless National continues to lead this country. We have fought to get these in place. We intend to fight to keep them in place.

The modern economy that is a key part of New Zealand today is underpinned by six key successes that National has achieved in Government.

We are careful to live within our means. The Fiscal Responsibility Act sees to that. We've delivered.
We have a workforce that is flexible, well-skilled and responsive. The Employment Contracts Act sees to that. We delivered it.
We have an open, competitive economy. The efforts of our Trade, Commerce and Finance Ministers have seen to that. They continue to deliver.
We have a competitive exchange rate, low inflation and the lowest interest rates we've had in many years. Our good economic management has seen to that. If New Zealanders want these to continue they need to keep a National-led Government.
We've steadily made progress in paying off our debt. Our growing economy and discipline by the Government has seen to that. We intend to see that continues.
We've been able to lower taxes people must pay while still increasing spending in education, health, welfare and justice programmes which are important to us and important to New Zealanders. We'll share that dividend more as the economy grows.
New Zealanders should also take a bow. Their efforts are contributing to a growing economy. The Government's efforts in creating an environment of business confidence and success has allowed us to deliver.

The commitment of this Government and the next National-led Government after the election will be to share with the people of New Zealand the dividend of our success as our economy returns to growth.

Just as we have done in the last five years, as the dividend of surpluses return, we will get the balance right by:

investing more in areas of social importance;
paying off some debt;
and reducing the taxes people must pay.
National does not support the failed ideas of the past - such as returning to subsidies and putting up taxes to pay for them as the Labour-Alliance bloc promise. They are yesterday's solutions and they didn't work then. The New Zealand of tomorrow, the positive, vibrant, confident nation that is now emerging, needs different opportunities and positive leadership by a capable team. We are that team.

The modern New Zealand led by a National Government, is in good company in the path we are travelling on - Clinton's America, Blair's Britain, Schröder's Germany.

Unlike the Labour Alliance bloc, these governments support lower taxes, firm but fair welfare programmes and strong investment in education. Astonishingly Labour in contrast couldn't be less like these successful governments if they tried.

Skills, new knowledge and attitude will be the key drivers of modern economic growth in New Zealand's next stage.

National is proud of our contribution to this decade of New Zealand's progress. We've got new plans to do more.

It's true even in farming, the most traditional of industries. We used to think that our success was determined by the quality of our land, the efficiency of our management and sheer hard labour.

Those things remain very important but we have to add to them. We must add the next tier and gain the next advantage.

It's ideas that count. How to add value. How to use existing products in a new way. How to market them in ways that are important to consumers. How to break down trade barriers.

With National's leadership we will work through APEC and the World Trade Organisation to open new markets.

We are ensuring there is far better co-operation between business, the tertiary sector and Crown Research Institutes. That way we will unlock the ideas that are the key to better prosperity.

This is the thinking behind our new plan for the next phase of our economic development.

Just this week here in Dunedin I launched one of the forums that Max Bradford and his team of Ministers is holding throughout the country to help generate the new ideas New Zealand needs.

Max Bradford has launched our '5 steps ahead' plan. They focus on:

Lifting New Zealanders' skills and knowledge.
Using Government-funded research to generate more valuable and good ideas for New Zealanders to use.
Improving New Zealanders' chances of getting the finance they need to turn good ideas into reality.
Keeping laws and regulations up to date.
Promoting success and backing New Zealanders with creative and innovative ideas.
These goals are all linked.

We want New Zealanders to strive to become the most highly educated people in the world using the research funds we have available to turn new ideas into even better ideas.

We want to see that those who develop good ideas get the finance - some domestic, some from overseas - to turn them into marketable products.

We are determined to see that out-dated government laws and regulations don't get in the way and we'll continue to do our share to make this work.

We must get passionate about developing a culture that honours success.

This Government wants New Zealanders to share the challenge of achieving these goals.

We can't just achieve one of our goals. We need all five to make a real difference.

So we're working with the business community, the university and polytechnic leaders, our research scientists, and all New Zealanders to develop our ideas further. It is terrific watching these movers and shakers talking together, debating together and thinking ahead.

That is what the forums are all about. We're outlining our plans and gathering good ideas from people at the sharp end of the business. They are giving us their feedback and will be able to feed their ideas in through the Internet.

The Budget on May 20 will have some elements that we believe will contribute to our achieving these goals. Some will make an immediate difference. All are about investing in our future.

In July when our round of meetings are completed we'll outline our next step after considering all the ideas and input.

But we don't have to wait until then for some action.

This week Government launched BIZ. It's a great new idea. It's what the Employment Taskforce called for. It's about smart people helping and working with smart people. It's available to all people in business, not just the 1 percent of businesses who used to use the previous business development board system.

If you need:

help,
advice,
mentoring from an experienced business person,
information about laws or regulations,
contacts with other businesses of any type,
BIZ can help. It's action-packed.

There's an 0800 number - so anyone can call in at anytime. Four call centres with good regional contacts will answer the calls and send information or point people in the right direction.
There's an Internet service. From here you can access the BIZ service and see what help, advice or new information about law changes and much else is available.
If neither of these appeals you can go into one of the 33 BIZ centres around New Zealand and get the help and advice you need. In addition, in each area there is an advisor service that will work with you.
New Zealand businesses are mainly small and medium sized businesses. They are important wealth creators. They are often the innovators. They employ the majority of New Zealanders.

This Government is getting alongside in the way that they have asked for, so that new opportunities and new growth will flow.

It's another way the Government can help.

But we all understand it requires more than Government action.

Education has always been fundamental to economic success.

That's never been more true than it is today.

Dunedin is an education city.

The university, polytechnic and college of education are all respected for their innovation. Further afield, so too is Southland Polytechnic.

They all have a crucial job to do. Our aim is to harness the skills of them all.

Nobody is suggesting infringing the academic independence of the tertiary sector.

We're certainly not talking about business manipulating the curriculum so that the education sector churns out better production line workers and labourers.

Those aren't the only skills needed. New skills are needed in larger numbers. We must have this debate as to how we achieve this, and what or who must change.

Our education and business sectors need to strengthen their relationships to ensure they continue to meet the needs of their students and the economy in the future.

They need to get to know each other much better.

That involves the education sector listening more closely to business about what skills are required for the future - information skills, creativity, literacy, numeracy amongst our young.

At the higher levels also it involves information sharing between business and the tertiary sector to generate good ideas and new intellectual property.

But there's also a task for business in all of this. Just as I am challenging educational institutions to move outside the classrooms and lecture theatres, I challenge business to think beyond the factory walls, outside the farm gate.

I've been very impressed in Dunedin to see some real innovation going on. The University is outstanding and is forging new links with business here and further afield. You've got the mix of 'town and gown' and you've explored real opportunity.

While New Zealanders can feel pleased we're doing as well as we are, in order to catch the next wave of growth, we need to do more and act fast and take the opportunities we have outlined.

When business does well, New Zealand does well and New Zealanders reap the benefits.

It's a win, win.

National is pro-business. We want the community to be.

Many businesses, large and small. In addition to creating wealth and jobs, put an enormous amount back into the community. I'm proud of what many of them do. I challenge those who knock business all the time to find out the extent to which business backs New Zealand arts and culture, New Zealand schools, voluntary and social work, the churches and the tens of thousands of local fundraising events.

I also challenge the news media to find out more about the enormous amount of generous and good work that goes on and share it with New Zealanders. New Zealanders want to know. They are inspired by these stories, and they reward the businesses for their efforts

In the short-term, there's no doubt consumers reward those enterprises that are involved in their communities. And the staff of many companies have found there is great potential for team-building and morale boosting in getting involved in the community.

In the long-term, it is in businesses' interests to have healthy, well educated customers and staff.

Some of the most successful businesses in New Zealand make a substantial investment, not just in education but in social cohesion. Look at the initiatives of the Warehouse, and Hubbards cereals. Look at the corporate volunteering of dozens of companies throughout New Zealand. These people are heroes too and deserve acknowledgement and praise.

They are investing in the well-being of their stakeholders in the widest sense.

They are New Zealand success stories not despite their involvement in the community, but because of their involvement in the community.

This morning I'm proud to announce another great example of this.

Over recent weeks many New Zealanders have been drawn into the lives and business of farming families as they have worked their way through the second serious drought I mentioned earlier.

Many have been concerned. Many have helped.

The Government has helped and has worked closely with farming leaders to see that assistance has been given in the right places.

During this time, people's minds have turned to long-term solutions as well as meeting short-term needs. In February when I was in Central Otago, I encouraged people to think laterally.

Water enhancement for people, stock and irrigation has again come to the fore. A number of farming groups have begun discussions and are investigating the feasibility of new schemes and upgrading existing ones.

Often, no one can agree who should get these ideas started. Sometimes the scale of the practical solutions is beyond the resources of small groups. I'm pleased to say we have a chance for business, Government and the community to work together.

We're looking at co-operating with the Agriculture and Marketing Research and Development Trust (AGMARDT) to set up a $2 million pool that will be available to investigate water schemes.

Under this proposal, the Government would put up $1 million, alongside another $1 million from AGMARDT.

The fund will be used for feasibility studies into water enhancement projects and irrigation schemes. To ensure there is local commitment to the projects, we will be requiring local government, regional government or local landowners to contribute another third to the total cost of each project.

This will be available to any drought-prone area in New Zealand and will allow the next step of many good ideas to be explored. It is a partnership of Government, business and local interests seeking to solve long-term problems together.

It is an exciting new opportunity that will allow land-users who want to explore options to do so without bearing the total burden of cost themselves. We believe it is timely. It will address the issues being raised by our growing understanding of longterm climate change.

Full details of the scheme will be announced in the Budget on May 20 but I hope land users and regions who think they may benefit from such an opportunity will take up this challenge.

With hard work, and the right attitudes, and a determination to use all our people and resources well we can deliver far better security and prosperity for all New Zealanders. Our social ambitions will be met by business.

National is not a party that will settle for mediocrity. That may have worked in the past but it won't in the future.

Our goal is to envisage a better future and go for it. We're a 'can do' party. New Zealanders are looking to us to deliver for them and we will.

We've got a great party, great people and great ideas. We must get out and share our story.

This year we will do this and we will win for New Zealand.