11. KATHERINE RICH (National) Link to this
to the Minister for Economic Development
What are the total sales for the New Zealand Focus store in Hong Kong from November 2005 to April 2006, and is the store on target to create an increase in sales of New Zealand products to the North Asia region of approximately $25 million over the first 3 years?
Hon DAVID CUNLIFFE (Associate Minister for Economic Development) Link to this
The Hong Kong focus centre is a New Zealand - branded retail and information centre that provides a business platform for New Zealand exporters to reach the Hong Kong and Greater China markets. I am advised that the centre is on track to achieve the goal of increasing exports by $25 million over the next 3 years. That is a net economic benefit target and does not refer just to sales from the centre itself. It is as yet too early to provide accurate total sales data encompassing all of the relevant channels.
I raise a point of order, Madam Speaker. I would have thought that in order to be able to address that question, which asked what the total sales were for the store, an answer would have included a dollar figure and some numbers.
Madam SPEAKERThe Minister did address the question. Members know that they cannot require specific yes or no answers, or specific facts, in answer to their questions. But the question was addressed—at great length, I might say. I take this opportunity to remind members that when they give answers, they should be as succinct as the questions should be.
Does the Minister know the total sales for the New Zealand Focus store in Hong Kong; if so, will he tell the Parliament?
Hon DAVID CUNLIFFE Link to this
I am advised that total sales data are not yet available. I seek leave to table a statement, dated today, by Malcolm Harris, chief operating officer for New Zealand of Fisher and Paykel, one of the tenants at the centre, who says that he applauds the Government initiative, it is about time for it, and he hopes we can open more centres.
Darien Fenton
Simon PowerHon DAVID CUNLIFFE Link to this
It was indeed page 2. The ground floor is home to a display and retail area showcasing New Zealand food, beverages, and natural health products. The mezzanine floor provides a showcase of New Zealand education and travel, and the top floor offers an area for exhibitions, business presentations, functions, and other promotional activities.
When the New Zealand Focus store in Hong Kong cost approximately $1.4 million to establish, and costs an estimated of $1.3 million per annum to run—that is $3,500 a day—what kind of commercial retail operation is New Zealand Trade and Enterprise running if it does not have basic figures like sales data and information that any other retail business in the world collects?
Hon DAVID CUNLIFFE Link to this
It may help if I explain to the member that this is not a retail business. It is not a supermarket. It is a regional headquarters and sales and marketing hub for the entire greater region. It covers multiple distribution channels, and the data on some of those channels are not yet in.
Does the Minister think the store is a success, when we have had contact with nine companies that have products in the New Zealand Focus store in Hong Kong, and eight report not one single inquiry from the store, and none attribute new sales to the placing of products in that store since it opened in November 2005?
Hon DAVID CUNLIFFE Link to this
For reasons that I have already explained, this is a multichannel operation. But I can report anecdotally that Dominion Breweries has successfully launched new lines in China, that two new wine brands have been launched in China, and that one skin-care brand has been launched in China as a direct result of this operation.
Mark BlumskyCan he confirm a recent report from one of the suppliers who recently visited the store that the key feature of the New Zealand Focus store, which is promoted as a fully functional Fisher and Paykel kitchen fitted with operating appliances to be used for business demonstrations and training, 5 months after opening still had not one single kitchen appliance working up to that time because of the lack of an electricity supply, and can he tell us how many food demonstrations and how much training have now been held in the Fisher and Paykel kitchen, 8 months later?
Hon DAVID CUNLIFFE Link to this
I do not have all that data in front of me, but I do have a statement from Fisher and Paykel that it applauds the Government’s initiative, it wants us to open more stores, and it is about time for this initiative.
When he said, in an answer to a parliamentary question, that previous trading experience and an understanding of the New Zealand - Hong Kong trading environment were two key criteria for picking the company to manage the retail store, why was the company selected when, in advertising for a manager prior to opening, it called itself a new trading company, looking for someone with knowledge of New Zealand and a knowledge of the retail trade?
Hon DAVID CUNLIFFE Link to this
I am advised that of the three short-listed candidates, the company concerned scored the highest total points against the assessment criteria.