OPENING OF THE NEW MAS TECHNOLOGY OFFICE IN SOUTH AFRICA NZ TELECOMS PTE LTD PRETORIA, SOUTH AFRICA

Mr Jordan, Managing Director of MAS Technology, and others from the M.A.S. team, distinguished guests, ladies and gentlemen.

I am delighted to be here this afternoon and to be associated with announcing the merger of NZ Telecoms and M.A.S. operations in South Africa, and also to launch your new company name and logo and officially open this office.

This significant investment, along with the opening of our new High Commission today, is evidence of the confidence that New Zealand has in the future of the new South Africa.

This initiative will also strongly enhance M.A.S. performance in South Africa which has already been pretty impressive over the last couple of years.

Through the sale of sophisticated telecommunications equipment into South Africa and the surrounding region, M.A.S. has secured orders in the last twelve months totalling approximately NZ$10 million.

That is good business by anyone's standards! Apart from the particular skills and expertise of M.A.S. (and I want to talk a little more about that later) it is no particular surprise to me that it should be in the field of telecommunications that New Zealand and South Africa should choose to co-operate together.

New Zealand has, since the mid 1980s undertaken a comprehensive programme of privatisation and commercialisation of state owned and operated trading organisations as part of a commitment to reduce the Governments direct role in business activity.

The telecommunications sector has been part of this process. The impact has been to create a deregulated environment where competitive companies strive to gain advantage in the international market place. Today, New Zealand's telecommunications industry has achieved international recognition for providing specialised equipment and services.

And we have become internationally competitive in short run and niche opportunities. The industry is strong in professional and technical skills with a high commitment to quality.

Indeed, most exporters are already certified to ISO9001 and are introducing Total Quality Management Systems.

A large range of complementary products are manufactured including specialised equipment for rural environments, PABX consoles, mobile radios, base stations for fleet operators, custom built equipment for civil and military use, antennae and printed circuit boards.

Export earnings from the industry now total NZ$200 million. By the end of the century this figure is expected to be nearer NZ$400 million. So you can see that it is logical that synergies should exist between the needs that exist in South Africa and the expertise which New Zealand is able to offer. And M.A.S. is one of the leaders in the field.

With 20 years experience in international operations, M.A.S. supplies equipment and services to telecommunications and defence customers in over 65 countries - including South Africa. Exports account for over 90% of its revenue and include major turnkey projects where M.A.S. has been responsible for all aspects of installation, testing and commissioning.

So I am particularly pleased that such a good New Zealand company is active here in South Africa and that with this merger with NZ Telecoms even stronger links will be established. I know that Neville and his team are looking forward to a reciprocal trading relationship being established through this new acquisition.

With the installation and commissioning of staff to be deployed from South Africa to many other countries on the continent, the prospects for the future look very promising indeed.

There are many exciting, new opportunities for the development of the trade relationship between South Africa and New Zealand. Opportunities in the telecommunications sector are among the most exciting of all and M.A.S. will help make them happen.

May I offer my congratulations to the entire M.A.S. Technology team, and particularly to those here today. You can all be very proud. I wish you every success. It is my pleasure now to officially declare this office open. Thank you.