future direction 2015 2015 progress to date. government’s strategic priorities delivering better...
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Future Direction 2015
2015
Progress To Date
Government’s Strategic Priorities
Delivering better public services within
tight financial constraints
Responsibly managing the Government’s
finances
Rebuilding Christchurch
Building a more productive and
competitive economy
Investment
Context for the Business Growth Agenda
Regional Development
Regulatory Reform
Māori Economic DevelopmentExport
Markets
Innovation
Skilled &Safe
Workplaces
Infrastructure
NaturalResources
Investment
Business Growth Agenda Cross-cutting themes
The 2015 Future Direction report will contain:
ExportMarkets
Innovation
Skilled &Safe
Workplaces
Infrastructure
NaturalResources
Investment
The Business Growth Agenda:• Provides a platform for ongoing communication between businesses and government
on the Government’s economic work plan• Sets ambitious targets to focus the direction of the Government’s work• Holds government agencies to account for delivery of work
The areas the Government is focussing on
The state of play for each area
A high-level goal for each area
Detail on the actions being taken
A list of progress indicators
Purpose of the BGA
A vision for economic success
1. A market based economy that reflects Kiwi attributes – agile, resourceful, innovative and world-beating
2. Our businesses add greater value to their goods and services – attracting a premium from our natural resources, intellectual edge and industry know-how
3. We are more internationally connected to reduce the impacts of distance, and seen as a real hub of talent and ideas for the Asia-Pacific region
4. An economy where all regions and our people have the opportunity to grow and prosper
5. We are one of the most highly-skilled countries in the world, with ambitious business leaders who make the best of our diversity of talents and ideas
An economy like this will grow our productivity and our incomes, and deliver real and ongoing improvements in the quality of life for all New Zealanders.
What would a successful New Zealand economy look like in 2025?
• We will attract high-quality investment into all parts of New Zealand
• We will grow exports, by developing businesses that are internationally connected and able to add value to volume and seize opportunities in an Asia-Pacific centred world
• We will develop New Zealand as a hub for high-value, knowledge-intensive businesses conducting more R & D to lift innovation
• We will have skilled and safe workplaces, where all our people are equipped with the skills to participate and succeed in our 21st century economy and society
• In the natural resources area, we will improve the productivity of our resource-related industries while reducing their environmental impact
• We will provide the right infrastructure at the right time to support future investment, growth and quality of life
To achieve this vision, we need to take action in a range of areas
Building export markets: creating businesses that are internationally connected and able to add value to volume and seize opportunities in
an Asia-Pacific centred world
ExportMarkets
• Signing of the Korea-New Zealand FTA• Increasing the number of companies intensively serviced by NZTE to a total of 612• Increasing exports with Taiwan by over 15 per cent • Agreement to explore an upgrade of the China-New Zealand FTA• Accession to the WTO Government Procurement Agreement, • Significant growth in the international education industry to a total value of $2.85 billion • Significant growth in tourism to a total exceeding $8 billion for the first time• Increasing New Zealand’s footprint in the ASEAN region • ICT exports have increased in value by $384 million since 2010 • Concluding an Air Services Agreement with India • Continuing to roll out Trade Single Window • Ongoing integration of the NZ Story • Creating Seafood and Wine versions of the NZ Story
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
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Primary products - Un-processed
Primary products - Processed
Manufactures - Simply transformed
Manufactures - Elaborately transformed
Other
Composition of New Zealand exports (Source: Statistics NZ $ billions, March years)
Target to “Increase the ratio of exports to GDP to 40% by 2025”
Building Investment: attracting high-quality investment into all parts of New Zealand
Target to “Significantly lift the rate of business investment as a percentage of GDP, with an
emphasis on attracting capital that generates economic
growth, creates high-value jobs and builds resilience in
regions”
Investment
• Overhauling our financial markets legislation• Facilitating the establishment of new public growth markets• Bringing the Limited Partnerships Amendment Act and Companies Amendment Act into force• Supporting the development of new sources of capital• Strengthening our consumer credit laws• Making solid progress on developing the Asia Region Managed Funds Passport• Ongoing progress on NZTE’s Regional Investment Attraction Programme • Making progress on returning to surplus and on repaying debt
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20052007
20092011
20130
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Korea
Australia
New Zea-land
United States
Private non-residential investment as a proportion of GDP (1970-2013)Private non-residential investment as a proportion of GDPSource: Statistics NZ (December years)
Building Innovation: developing New Zealand as a hub for high-value, knowledge-intensive businesses conducting more R&D to lift
innovation
Target to “Create the right business environment and incentives to
encourage New Zealand’s business sector to increase its expenditure on
R&D to 1% of GDP”
Innovation
6.3%11.5%
5.2%7.8%
Compound annual growth rate of BERD for the latest
available 10 years 0.54%
1.23%
1.90%1.64%
BERD as a % of GDP 2014
• Increasing funding for Business R&D Growth Grants by $20 million a year• Supporting 493 high-tech firms to increase their investment in R&D through R&D Growth Grants, Technology Development
Grants and Project Grants• Supporting high-tech start-ups to develop and commercialise IP through the new incubators and repayable grants
programmes• Officially opening GreenHouse (Christchurch’s new innovation hub) in June 2015• Implementing legislation for cashing out R&D tax losses, to ensure the tax system does not discourage R&D • Working towards the establishment of ICT graduate schools in Auckland, Wellington and Christchurch. • Continued to implement the National Science Challenges, launching five National Science Challenges in 2014/15 bringing
the total to six.
Building Safe and Skilled Workplaces: equipping all our people with the skills to participate and succeed in our 21st century economy and
society
Target to “Materially lift New Zealand’s long-run productivity growth rate
while maintaining our high rate of labour force
participation”
Skilled &Safe
Workplaces
OECD av-erage
Denmark Ireland Finland United Kingdom
New Zealand Israel0
10
20
30
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Percentage of population with tertiary educationSource: Education at a Glance 2014: OECD Indicators
Perc
enta
ge o
f pop
ulati
on
• In 2014 the proportion of 25-34 year-olds with NZQF Level 4 or higher qualifications was 54.9 per cent, up from 52.6% in 2012
• Establishment of the first 11 Communities of Schools and the implementation of the Principals Recruitment Allowance, to raise quality teaching and leadership in our schools
• Increasing our investment in apprenticeships• Targeting intensive services to those clients identified as having the highest future liability, as part of the investment
approach to welfare• Holding four job fairs in Perth, Melbourne, Sydney and Brisbane • Enabling the supply of the skills needed for the Canterbury rebuild, through the Canterbury Skills Shortage List, the
Canterbury Skills and Employment Hub, and the Skills for Canterbury package. • Enactment of the Employment Relations Amendment Act in March 2015 • Increasing the size of the Labour Inspectorate
Building Natural Resources: improving the productivity of our resource-related industries while reducing their environmental impact
Target that “The quality of our natural resource base improves over time while sustaining the
growth needed from key sectors to meet our 40% exports to GDP
target”
NaturalResources
Annual merchandise exportsSource: Statistics NZ, Ministry of Primary Industries ($ billions, year ending June)
• Publication of the Guide to Section 32 of the Resource Management Act• Changes to the resource consent process • Releasing the amended National Policy Statement for Freshwater• Ongoing work to strengthen the biosecurity system• Working with a range of partners on programmes to increase productivity and reduce carbon emissions • Publishing growth studies for Northland, Bay of Plenty and Manawatu–Whanganui • Development of the Māori Agribusiness Pathway. • Establishing the Te Mana o Te Wai Fund (in partnership with the Māori Party)• Introducing the Environmental Reporting Bill• Implementing a new framework to sustainably manage New Zealand’s Exclusive Economic Zone (EEZ) and continental shelf • Amending the Local Government Act to require local authorities to operate more effectively and efficiently • Forging innovative public-private partnerships with leading businesses for conservation projects• Investment of $8 million over four years in pre-commercial petroleum and minerals exploration data acquisition projects.
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20102012
0
10
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70Other exportsOther primaryOil & gasForestrySeafoodHorticultureMeat & woolDairy
bil-lions
Building Infrastructure: Providing the right infrastructure, at the right time to support future investment, growth, and quality of lifeInfrastructure
Target that “By 2030 New Zealand’s infrastructure is resilient and coordinated and contributes to economic
growth and increased quality of life.”
• The deployment of ultra-fast broadband• Strong progress in strengthening our roading network• The electrification of Auckland’s metro rail network• Establishing a total of 100 Special Housing Areas across
New Zealand • Securing a sale and development agreement to construct
237 homes in Christchurch• Removing regulatory barriers that drive up costs of
construction • Major progress on the rebuild of Christchurch • 34,000 homes insulated through the Warm Up New
Zealand: Healthy Homes initiative. • Largely completing $5 billion of investment in the national
electricity grid • Driving better social housing outcomes
UFB Rollout as at June 2015