NZ Economy: Key Govt Strides Towards Economic Transformation
May 6th, 2010
Without much fanfare, some significant progress is being chalked up in re-balancing the economy, turning it from debt-fuelled consumption excess to export-led expansion, and out of cyclical recession to sustainable growth. Alongside the headline success of the resurgent dairy boom and the forestry sector reaping the rewards of insatiable demand for logs from China, manufacturers have been lifting exports, particularly to Aust, with the exchange rate working in their favour. This week the Govt set out new proposals to stimulate development of aquaculture, where the goal is to triple the size of the industry to exports of $1bn.
A marketing study suggests as a one-off event the Rugby World Cup tournament, into which the Govt is investing around $40m, could yield a $530m boost to GDP next year. This could easily be surpassed if Govt efforts to promote business linkages succeed (Trans-Tasman learnt this week of a diplomatic mission in Wellington which has had inquiries from more than 1000 firms in its home country to be part of the event). A bigger prize still in the Govt’s goal of transforming the economy could come from petroleum exploration.
Despite the disappointment of the latest wildcat well Hoki-1off Taranaki being plugged as “dry,” international companies like Anadarko, renowned for their skill in drilling in deep waters, are joining the hunt. Speculation is Petrobras of Brazil may be sniffing round for opportunities in this part of the world. In talks with several oil “majors” earlier this month in Mexico City, Energy Minister Gerry Brownlee found they were watching the outcome of the current drilling campaign closely, as well as block offers for frontier basins such as the Raukumara off the East Coast, and will be eager to join the scramble for licences at the first sign of a discovery.
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Duncan Cotterill