Initiatives Developed in Other Work-Streams
51. The response to the taskforce will include a number of initiatives which have been developed in other work-streams and which address taskforce concerns. These are discussed briefly here.
Tax changes and reducing the cost structure for exporters
52. The taskforce was concerned about reducing the cost structure for exporters and recommended that there be accelerated income tax deductions on specified expenditure incurred to support export market development (recommendation 15.8). It also suggested that there needed to be a review of the level and structure of taxation and how it impacts on incentives to invest in longer-term productive activity as opposed to structuring investment activity around the quest for capital gains.
53. These concerns are addressed in large part by:
- the expected business tax changes, in particular tax changes benefiting R&D investment will significantly assist the sector;
- the boost in funding for the Market Development Assistance Scheme, which has the objective of encouraging the entry of more New Zealand firms into global markets (EDC Min (04) 24/6 refers); and
- work on reducing compliance costs through the Quality Regulation Review announced in May 2006.5
Increase penetration and uptake of broadband in the regions will also be of assistance.
Work Programmes in MAF and Ministry of Fisheries
54. MAF's work programme includes several significant projects focusing on growth, productivity and the impact of climate change on agriculture, including both on and off-farm production systems. These include projects on: Life Cycle Analysis; sustainable agriculture; and a significant applied research programme on the drivers of economic growth, productivity and resource allocation across the primary sector. The key emphasis of all these work programmes is to leverage the government's information and expertise to produce practical tools that benchmark economic and environmental performance and support business adaptation.
55. The Ministry of Fisheries also undertakes considerable work in the primary industries that aligns well with the recommendations of the Food and Beverage Taskforce.
Aquaculture Strategy
56. A cross-government response to the recently-released aquaculture strategy has also been developed. Some of the initiatives progressed in the context of the Food and Beverage Taskforce response will also enable the government to respond to key parts of the aquaculture strategy, in particular strengthening stakeholder partnerships, developing the market for New Zealand aquaculture products and maximising opportunities for innovation. The government's response to the Aquaculture strategy will be publicly released on June 7, 2007.
Pipfruit Strategy
57. Due to a range of issues facing the pipfruit industry, such as poor export returns and a lack of coordinated marketing, I provided funding for the industry to develop a long-term growth strategy. The strategy is intended to:
- identify the steps the New Zealand pipfruit industry needs to take to generate sustainable economic returns to all parts of the industry;
- identify the roles that the key stakeholders, Pipfruit NZ and the government need to play in the strategy's implementation.
58. The strategy will focus primarily on the long term future of the industry and will identify the changes necessary for New Zealand to maintain international competitiveness.
Primary Industries Forum Process and Summit
59. The Minister of Agriculture has also convened a Primary Industries Leaders Forum (comprising primary sector business leaders and industry organisations from the agricultural, horticulture, dairy, meat, wine, fishing, aquaculture and forestry sectors) to provide a vehicle for ongoing dialogue with primary sector leaders on the economic, social, environmental and technological challenges facing the sector, and to obtain commitment to take the steps necessary to achieve sustainable economic growth.
60. MAF is leading work on developing a high-profile event - Primary Industries 2020: A Summit on Succeeding in a Changing Global Economy - which will be held in Christchurch in November 2007. The Summit will provide primary sector business leaders with challenging perspectives on the demographic, cultural and social factors that are driving changes in consumer preferences in established markets (such as the EU) and in emerging markets (e.g. Asia). The Summit will provide an opportunity for business leaders to examine potential solutions to the sector's sustainability challenges, including human capability, technological change, inward and outward investment opportunities, market development, carbon neutrality and collaborative business models, including consortia and transformational alliances.
New Zealand Tourism Strategy 2010
61. Taskforce discussions ranged over the desirability of tapping into the growing food tourism market and the opportunity to more proactively showcase food and beverage products in international tourism promotions. In-market tourism promotions already include a food and wine component. Nevertheless there is significant untapped potential. The Ministry of Tourism is currently working in collaboration with the tourism industry to refresh the New Zealand Tourism Strategy 2010. The strategy update process provides a timely opportunity for food and beverage and tourism stakeholders to identify the synergies between the two sectors and how they might be leveraged for mutual benefit.
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