Message from the Trade Commissioner

Welcome to the first edition of the NZ Pacific Navigator for 2007. 

 The commission has been busy in the beginning of the year updating and finalising its AWP 2007 and Business Plan 2006-2008.  Both these documents are available on our website for your information. We are also currently interviewing applicants to fill the vacant position of Investment Marketing Executive that was previously held by Jennifer Findlay. The new recruitment should start work by the first week of March.

 To encourage co-operation amongst the commission’s portfolios as well as be innovative and creative, special projects have been planned for 2007, such as a North meets South Mission in May, launch of the regional business awards at the Pacific Business Awards, June and Return to Roots Mission in October. Details of these events can be found in our updated Business Plan. The planned activities of PITIC in 2007 will be centred around its three key umbrella strategies in its Business Plan 2006-2008; strategic alliances, empowering domestic entrepreneurship and innovation & creativity..

I would like to take this opportunity to thank you all for your continuing support and look forward to working with you in 2007.

Best Wishes for the New Year and Ofa Atu,

Chris Cocker

Trade Commissioner

Ropeti Gafa is a man on a mission – to build a sustainable private sector in Niue.  As the Director of Pisinisi Niue – previously known as the Business Advisory Service (BAS), Ropeti has been busy in Auckland visiting various New Zealand organisations, tapping into networks researching ways of boosting Niue’s private sector.

Ropeti has already spent a week on attachments in Auckland with the Pacific Business Trust, a non-profit organisation to assist NZ Pacific people to set up businesses; before basing himself at the PITIC office in Newmarket. 

Since starting work with Pisinisi Niue last year, Ropeti initiated the first Niue Business Expo 2006.  The Expo coincided with Niue’s Constitution Day and was so successfutl that it will become an annual event.

With the Niue Government’s recent decision to cut back on public servants working hours to 4 days a week, Ropeti’s efforts in Auckland will be all the more important as local Niue people seek ways to supplement their incomes.

Niue is embarking on a strategy to attract its people back home.  Part of the effort is rewarding youth excellence in business.  Last year, the Niue Chamber of Commerce rewarded youth entrepreneurship with the Young Business Persons Award.

One of the three top prizes went to 22 year old businessman BJ Rex for his family business, bar and restaurant Falala Fa situated in Alofi, Niue. 

The Niue born, AUT University trained chef sharpened his culinary skills as a student working part-time at Auckland’s North Shore, Killarney Street Bar and Brasserie before returning to Niue to run the business.  The talent chef is also a keen rugby player and has represented Niue in rugby and touch rugby.

The strong family support from parents Robert and Lofa Rex and his four sisters, has certainly helped the young chef achieve top results.

 
PITIC NZ Annual Work Programme

The PITIC NZ Annual Work Programme 2007 and updated Strategic Business Plan 2006-2008 is available for you to read.  Please visit our website www.pitic.org.nz/About%20Us.html and scroll down to PITIC NZ Business Plan 2006-2008, PITIC NZ Annual Work Programme 2007.
 

NZ Securities Commission

New laws governing insider trading, market manipulation, substantial security holder disclosure and investment adviser disclosure will take place around the middle of 2007. This follows the passing the passing of the Securities Legislation Bill in October 2006 amending the Securities Act and the Securities Market Act.  Below is an extract from “The Bulletin “ the NZ Securities Commission newsletter however for full information please visit the website www.sec-com.govt.nz

New Investment Adviser and Broker Disclosure Regime

When the new law comes into force it will repeal the Investment Advisers (Disclosure) Act 1996. Client disclosure requirements for investment advisers and brokers will be set out in Part 4 of the Securities Markets Act.

The new disclosure laws require more information to be given to clients, especially about fees and remuneration. Full disclosure must be made up-front by investment advisers before investment advice is given to members of the public and by investment brokers before receiving investment money or investment property from members of the public.

The disclosure is mandatory. It must be made in a disclosure statement, and provided without the client having to ask for it.

The new rules are intended to make sure clients receive information they need about their investment advisers. In particular clients must be given more information about fees, commissions and other remuneration. This will extend to any benefits to be received by the adviser, whether from the client or another source, and include "soft" commissions and indirect benefits relevant to the advice being given to the client.

Investment advisers disclosure must include-

• their experience and qualifications;
• criminal convictions;
• the nature and level of fees charged;
• other interests and relationships (including all remuneration); and
• types of securities the adviser advises on.

Investment brokers disclosure must include -

• criminal convictions; and
• procedures for dealing with investment money and investment property.

Disclosure statements must be kept up-to-date and must not be deceptive, misleading or confusing. Any advertisement for an investment adviser's services must tell investors that the disclosure statement is available, free of charge.

Misleading disclosure statements or misleading advertising will attract criminal penalties of up to $300,000. Further penalties can be imposed where offending continues - up to $10,000 per day.

Advisers and brokers must not recommend illegal offers of securities or receive investment money in respect of illegal offers of securities. A breach of this requirement is a criminal offence if the adviser or broker knows or ought to know that the offer is illegal.

The Commission will have the power to enforce the new requirements and make prohibition orders, corrective orders, disclosure orders and temporary banning orders. The Courts will be able to make orders banning people from acting as investment advisers for up to 10 years.

Failure to comply with the disclosure obligations is an offence with fines of up to $300,000. Civil penalties of up to $1,000,000 can be imposed by the Court. For more information go to (source: www.newsecuritieslaw.govt.nz/releases/articles/lm-100107.php)

NZ Securities Commission

The Securities Commission has set up a new website www.newsecuritieslaw.govt.nz to help people understand the changes to the securities law which will take place around mid 2007.

 
PITIC NZ newsletter survey

Thanks to all readers who responded to the 2006 PITIC NZ newsletter survey.  Although the number of respondents was small, the comments and suggestions were very useful. 

The survey was sent out in December 2006 with a one month response date to 31 January 2007.  There were approximately 400 surveys sent out electronically and by post.  21 surveys (5.25%) were completed and returned. Of those, 72% read the newsletter and gave it a 4 or 5 (almost always or always) rating for reading the newsletter.  The articles also rated 4 or higher for usefulness amongst approximately 71% of readers.  More people wanted articles on Tourism whilst suggestions were made for stories on NZ Heavy Engineering Industry, Training and Education, Product and Trade Information on Agricultural produce.  We will try and accommodate all the suggestions as much as we can.  Thank you all for your assistance. 

PASIFIKA FESTIVAL 2007

TREASURES DIRECT FROM THE COOK ISLANDS + (241 + banner pic)

 Kia Orana from the Cook Islands!

The Pasifika Festival has again given the Cook Islands an opportunity to exhibit Cook Islands made products and showcase Cook Islands entertainment.
 
The marketing initiative is driven by the Cook Islands Development Investment Board (CIDIB), and is especially important for small businesses from the Outer Islands. With CIDIB facilitation, the small Outer Islands businesses have attended the festival, developed business networks and in some cases, secured contracts to supply their products to Auckland.

Overall, Pasifika provides an important platform for Cook Island businesses to generate trade leads with potential product buyers and wholesalers in New Zealand. This year, the CIDIB are very excited to be supporting two new young entrepreneurs who are launching their products at the festival.

Since the Cook Islands’ presence at the Festival in 1998, many of the Cook Islands producers, manufacturers, and processors of Cook Islands arts and crafts, entertainers, carvers, entrepreneurs, designers, chefs of local cuisine have attended.

The 2007 delegation comprises ten representatives from a significant cross section of growing industries ranging from the popular arts and crafts, clothing and cuisine.

A dazzling Cook Islands Dance Troupe will perform hourly and Miss Cook Islands/Miss South Pacific will also be part of the delegation.  After the final performance the Cultural Group will be selling the costumes that will be on display. 

Check out The Cook Islands Trade Delegation Corner, by the APRA Main Stage, right Opposite Western Springs Stadium, Green Zone. 

Earlier this month, PNG Councillor Andrew Tumbu from the PNG High Commission in Wellington visited Auckland to identify opportunities to increase markets for PNG products. Mr Tumbu visited the PITIC NZ office and also attended an informal luncheon hosted by the Ministry of Foreign Affairs and Trade for former NZ High Commissioner to PNG H.E Laurie Markes.

Since his arrival last year, Mr Tumbu has familiarised himself with the New Zealand market noting New Zealanders keen café culture as a possible outlet for PNG coffee and visited various businesses and organisations.  Traditionally, Australia has had a strong relationship with PNG and now with Europe remains PNG’s biggest markets for products such as coffee.  However, Mr Tumbu says he is confident he can identify two or three products that PNG can successfully focus on for export here.  PNG exports coffee and wood accounting for 10.07% of total imports from the Pacific.  

Overall, however 2006 was a good financial year for PNG.  In November, PNG treasurer Sir Rabbie Namiliu announced a supplementary budget windfall of US$451 million gained from the high commodity prices. The good fortune continued with InterOil Ltd (Canada) announcing the discovery of ‘huge’ commercial gas reserves estimated at several trillion cubic feet at its Elk 1 well in the Eastern Papuan Basin.  Then in December, Harmony Gold Mining Limited (US) began building new facilities in the Morobe Province saying it would import US$45 million in mining equipment early in 2007 and begin gold production in mid 2008. (source: NZPNG Business Council e-newsletter, Jan 2007)

Despite the abundant wealth of natural resources and recent successes PNG has struggled with the lowest social indicators in the Pacific with 37%, (5.5 million) of its population living in poverty, low life expectancy (57years) high infant mortality and even higher maternal mortality rates.  Up to 80-85% of its population living in rural areas where poverty is most concentrated. (NZAid PNG Strategy 2002-2007, pg 1)

A report released in February 2006 by the NZ Institute of Economic Research, “Papua New Agriculture; Issues and Options’ discusses the issues facing PNG agriculture, provides comparative assessments with similar commodities produced in Indonesia and Malaysia and concludes with a number of recommendations. To view the report go to www.nzier.org.nz/SITE_Default/SITE_Publications/x-files/16455.pdf.

New Zealand and Australia assist PNG through their respective aid programmes; New Zealand allocating NZ$16million for 2006/2007 and Australia allocating AU$332.2 million. 

Weblinks

The Pacific Forum Secretariat

www.forumsec.org.fj

 
Market your business on-line

www.pacificbizonline.com

 
Distributor fresh produce

www.turnersandgrowers.com

 
Distributor of cosmetics

www.tropicalblends.co.nz

 
NZ Export Year website

www.exportyear.co.nz

 
Conferences & Meetings

www.meetingnewz.co.nz

 
NZ Securities Commission

www.sec-com.govt.nz

 
New Zealand Institute of Economic Research

http://www.nzier.org.nz/SITE_Default/SITE_Publications/reports/default.asp

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