12. MARK BLUMSKY (National) Link to this
to the Minister for Economic Development
Is he satisfied that by showcasing trade opportunities for New Zealand exporters in Hong Kong, China, and the wider North Asia region, he is on target to meet his objective of increasing exports to the region by $25 million over 3 years, now that 1 year has passed?
Hon TREVOR MALLARD (Minister for Economic Development) Link to this
Yes. We are on track to achieve the targeted net economic benefit of $25 million to the New Zealand economy.
Does the Minister believe that his Government has the skills to oversee its multimillion-dollar retail investment in Hong Kong, the New Zealand Focus centre, when feedback from many of the suppliers states that sales have been negligible, that inquiries from China have been minimal, and that a significant number of those suppliers have given up and removed their products from the store after only 1 year of operation?
Hon TREVOR MALLARD Link to this
I can confirm that a number of firms that have graduated from the organisation now have good channels into China and no longer use it, as a result of the very good start they have had. I also note that this member’s mate missed out on the contract and has been whingeing ever since.
H V Ross Robertson Link to this
Is the Minister aware of any other export initiatives that might be of benefit to New Zealand exporters?
Hon TREVOR MALLARD Link to this
Yes, I am. This Government is investing $33.75 million to increase New Zealand’s export capacity for Export Year 2007, which is something that has been welcomed by everybody but the National Party.
Why did New Zealand Trade and Enterprise appoint Extra Rations Ltd to run the Government retail store in Hong Kong, the New Zealand Focus centre, and give it $1.3 million per year, as well as $1.4 million to establish the store, when that organisation was ranked last in New Zealand Trade and Enterprise’s evaluation in the category of retail experience; and has he been satisfied with Extra Ration’s performance?
Hon TREVOR MALLARD Link to this
I have not been satisfied with its performance, but I will point out to the member that it topped its evaluation, which was independent, and it beat his mate’s firm, hands down.
Why, when New Zealand Trade and Enterprise drew up the criteria for retail manager for the Government retail store in Hong Kong, as well as including criteria such as long-term strategic vision and management capability, was there not a criterion related to being just too busy, when that was used as the reason that the retail manager of Extra Rations, so loudly lauded by the Minister, has just quit after barely 1 year in the job—being too busy to do the job?
Hon TREVOR MALLARD Link to this
The thing I know is that that company won an evaluation. It beat the company that that member used to be a director of, and he should stop whingeing about it.
Did the Government take into account, when it selected the retail product for its retail store in Hong Kong, the market prices for the product it selected when, for example, a whole shelf in the store is dedicated to noodles costing HK$30 a pack, when similar noodles can be bought in neighbouring stores for only HK$5; it is a bit like coals—or should I say noodles—to Newcastle?
Hon TREVOR MALLARD Link to this
Given the changes that have happened opposite, it is very clear that members know nothing about value added.
Madam SPEAKERMembers will be leaving the Chamber for the rest of the day unless they are quiet. The Minister may have thought he addressed the question, but he was a bit obscure for the rest of us. Would he please answer the question.
Hon TREVOR MALLARD Link to this
Unlike members opposite, given their recent changes, we recognise added value.
Hon Dr Nick Smith Link to this
I raise a point of order, Madam Speaker. The answer you had from the Minister was exactly the same choice of words that you previously ruled did not address the question. It was a very serious question about how marketing noodles in Hong Kong might help New Zealand’s trade interests, and the Minister should have to justify that.
Having had time, I understand now what the Minister was trying to say. He is being subtle; it would be easier if he could be clearer. Would the member please spell it out in words of one syllable for those members in the Chamber who cannot understand the answer.
Hon TREVOR MALLARD Link to this
It is better for New Zealand to have high-value goods being sold and to have additional profits. That is called value-adding, which is the opposite of what has happened in the National Party, where a useless leader has been traded in for one who is even worse.
Was the new company that is replacing Extra Rations to run the Government retail store in Hong Kong, New Zealand Products Hong Kong Ltd, one of the original three companies shortlisted by New Zealand Trade and Enterprise; if not, having just replaced Extra Rations, why was no contract tendered for that position—the Minister is obviously very unaware of his favourite Extra Rations not being now the operator for this store?
Hon TREVOR MALLARD Link to this
I am aware; I told the member earlier that I was not satisfied with its performance. That was one of the reasons it went.