Primary Industries Minister departs for Iran and the United Arab Emirates today on a trip to build closer trading relationships.

“Iran has been an important trading partner for New Zealand in the past and there is great opportunity to increase our two-way trade. This is an exciting step for New Zealand companies who are working with importers in Iran,” says Mr Guy.

“This will be the third ministerial visit to Iran in 12 months and reflects the growing importance of this relationship. This is an opportunity to strengthen our agricultural relationship, following the signing of an Agricultural Cooperation Arrangement in 2016.”

Mr Guy is also attending Gulfood, the world’s largest food tradeshow being held in Dubai

“Over ten New Zealand exporters will be attending this major event which is attended by global buyers.”

The trip also involves bilateral meetings with members of the UAE Government in Dubai.

Accompanying Mr Guy on the trip is a business delegation including representatives from Fonterra, the Meat Industry Association and Zespri.

Mr Guy departs today and returns to New Zealand on 2 March.

|  A Beehive release  |  February 24, 2017  ||

The Terms of Reference for the Fuel market Financial Performance Study Energy have been released today, says Energy and Resources Minister Judith Collins.

The Study, being undertaken by the Ministry of Business, Innovation and Employment, will take an in depth look at fuel company finances to determine if the price New Zealanders are paying at the pump is reasonable.

“Petrol and diesel are fundamental to New Zealander households and businesses and I am concerned that the difference between what fuel is imported and sold for (fuel margins) has steadily increasing over a number of years.

“We need to know why this is happening and determine if what people are paying at the pump is reasonable or whether companies are making super-normal profits.

“This study will offer new insights into our fuel sector and help us understand if there is an issue and, if there is, show where we need to focus to address it.

The Fuel Market Financial Performance Study will look specifically at returns on capital employed of the major businesses at different parts of the value chain. These returns will then be assessed against an appropriate cost of capital and compared with fuel suppliers in other countries.

The Study will also consider margins and other market performance measures as another way of providing insight into industry profitability.

“This is a technical study but I do expect some observations to be made about regional price differences.

“I am pleased that the companies involved – Z Energy, BP, Mobil and Gull – have all said that they will co-operate with MBIE. The companies were also consulted on the Terms of Reference,” Ms Collins says.

The Fuel Market Financial Performance Study is expected to be completed by June.Related Documents

Terms of Reference into Fuel Price Inquiry (pdf 353.62 KB)

|  A Beehive release  |  February 24, 2017   ||

Foreign Minister Murray McCully will travel to the Cook Islands this week to undertake a range of meetings, including with Prime Minister Henry Puna and his Cabinet.

“My discussions with Prime Minister Puna and his Cabinet will cover a range of matters including New Zealand’s support to the Cook Island’s tourism sector, which accounts for over 60% of national GDP,” Mr McCully says.

“Ensuring the ongoing health of the tourism sector is a top priority in our partnership. For this reason, New Zealand has committed to projects designed to improve sanitation and water quality infrastructure, specifically in Rarotonga and Aitutaki.”

This visit will also provide an opportunity to hear from Cook Island representatives about economic development opportunities in the outer islands.

While in the Cook Islands, Minister McCully will also meet with members of the Opposition and attend engagements with the Cook Islands Tourism Board and key business leaders.

| A Beehive release  |  February 20, 2017  ||

Five questions for Washington insider Scot Faulkner

The newly installed Trump Administration continues to catch New Zealand officialdom by surprise. So MSC Newswire asked Washington insider Scot Faulkner (above) what Wellington’s response should in fact be? Mr Faulkner was elected the first Chief Administrative Officer of the U.S. House of Representatives. His reforms became a model for the operation of national parliaments around the world.

The New Zealand Foreign Ministry has set up a special focus group solely for the purpose of identifying early warning of new policies promulgated by President Trump, the ones which will have an impact on this country. Can you short circuit this by helpfully forecasting any of these pending surprise policies?

The New Zealand Foreign Ministry’s Trump Task Force will only be of value if it discards long held assumptions and embrace a totally new way of thinking and acting. Trying to predict Trump through traditional means, such as monitoring after-the-fact media, is like using ouija boards, tarot cards, and horoscopes.

The Ministry’s primary objective should be to move at “Trump speed” and navigate in Trump’s world. Non traditional sources, non traditional methods will be keys to success. Thinking like a visionary risk-taking entrepreneur instead of a politician is the first step into this new reality.

Trump is unique. No one like him has ever been the President of the United States. While a few Presidents had business experience, their main credentials were either the military or government. America usually faced political or military crises. The 2007-2008 economic collapse convinced most Americans that something radical was necessary. So they rallied around a businessman who was known to most as a reality television star. As Trump stated, “everyone else has failed you – what do you have to lose? Try me.”

Trump’s unique background means unique thought patterns and processes. President Trump gets his ideas, news, and validation from places never before involved in governing. He is fearless, non linear. He embraces chaos, acts on intuition, moves quickly, and uses surprise as a strategic weapon. Sometimes only he knows the ultimate objective. He is a student of military history, especially Sun Tzu. That is what gave him the winning edge in business, the Republican primaries, and the 2016 general election.

Trump’s new Administration is already being tested by China, Russia, and a variety of other nations. President Trump’s responses will indicate many things: how fast he responds, how he responds, how he views the challenge and the challenger, how he frames the challenge within his existing world view, how willing is he to vary from stated positions to address a unique situation, how willing is he to escalate, whose advice does he value, who he collaborates with, and who, how, and what does he communicate regarding the challenge to Congress, the American public, and other nations.

New Zealand needs to understand that the next four to eight years has a very different global player. Trump’s approach will be very personal, intimate, intuitive, immediate, chaotic, and against all conventional wisdom, very successful.

All the indications are that the New Zealand diplomatic apparatus in New York and Washington was wrong footed by the Trump ascendancy. This led to falling in line with the Obama era last moment positioning of New Zealand as co-endorser of the UN anti-Israel resolution. Does New Zealand need to backtrack here?

New Zealand should always be wary of being pulled into American politics. Obama’s last minute swipe at Israel during his waning days as President should have been avoided at all costs. Obama’s behind the scenes orchestration of the resolution, which was being delayed until the new Administration, was ill-advised and dilatory. It undermined decades of America being a positive force in the region.

President Trump is a great friend of Israel. He and his team believe that, historically, enemies of America have funded the radical elements of the Palestinian cause.

Trump is committed, heart & soul, to destroying radical Islam and reining-in Iran. His priority is working with those nations that share his view. He sees Israel, and the moderate Arab governments, like Egypt and Jordan, as allies in eradicating ISIS, Hezbollah, Hamas, Al-Qaeda, the Taliban, and their regional and tribal affiliates throughout the Arab world, Asia, and Africa.Trump and his foreign policy team fundamentally differ from the Neo-conservatives who surrounded President George W. Bush. They adhere more to the Reagan-Thatcher/John-Paul II approach of destroying tyranny, but not trying to second guess centuries of local custom through nation building. America’s role is to inspire, not intervene, in a nation’s journey toward a freer society.Israeli settlements are far more complex than the media portrays. Palestinian contractors and workers build Israeli settlements. West Bank unemployment soars whenever Israel slows or suspends new settlements. The chasm between peaceful, free, and democratic Israel and violent, oppressive, Islamic failed states in the region is stark. Land for Peace has been a chimera for Israel. De-radicalizing Palestinian leaders and their movement would go further in creating lasting peace than continuing to place the onus on Israel.

The Anti-Israel Resolution validated Trump’s view that the United Nations is currently there to promote radical anti-Western policies while wasting vast sums of money. It further proves his wisdom of pursuing America’s interests through bilateral, not multilateral, arrangements.

New Zealand has supported in spirit the US-EU trade embargo against Russia called up by President Obama. Is there a defined timetable to conclude this embargo?

There is no defined timetable for ending or modifying the trade embargo against Russia.

President Trump and his inner circle have a non-ideological practical “America first” world view. It harkens back to the 17th/18th Centuries. During that era, Western nations united to stop the expansion of the Ottoman Empire then competed, sometimes violently, to dominate world trade.

President Trump wants to build relationships with Russia and China for ridding the world of rogue players – radical Islam, Iran, and North Korea. This is why he picked Rex Tillerson, who has strong relationships with Russia as his Secretary of State, and Iowa Governor Terry Branstad, who is friends with President Xi Jinping, as Ambassador to China. This is also why Trump picked a skilled fighter, James Mattis, as his Secretary of Defense.

Trump’s trade and business team is equally ready to help America win in world commerce. Wilbur Ross, Steve Mnuckin, and Robert Lighthizer will aggressively negotiate favorable trade agreements and rebuild U.S. competitiveness.

Russia remains problematic as its adventurism in Ukraine and intimidation of the Baltic States complicates Trump’s desire to be “frenemies”. Tillerson will be challenged to craft the right mix of incentives and punishments to refocus Russo-American relations. The current US-EU trade embargo will be assessed within this context.

The Transpacific Partnership Agreement signed in Auckland last year was No 1 on President Trump’s hit list. Looking at the longer term where do you see the advantages/disadvantages in this?

President Trump is all about building one-on-one personal relationships with world leaders. Bi-lateral relationships were his strong suit in business and will serve him well as President. They allow him more flexibility and agility. He has little interest in multi-lateral agreements or entities.

This is why TPP was in his cross hairs as a candidate and now as President. New Zealand and other TPP nations need to offer their best “value proposition” for trade relationships that will benefit the U.S. as much as themselves. These are the kinds of agreements that will get Trump’s attention and become his priority.

Trump prides himself on the foreign investments in America he has facilitated or promoted. He wants American companies to “come home” to America, and foreign companies to settle in America. Trump’s goal is to bring the best of the world to America to rebuild infrastructure and generate lasting employment opportunities. There is a new world of opportunity for New Zealand investment and partnering in America.

Given the available evidence it is hard not to conclude that officials here have only a threadbare understanding of what is going on in the relevant circles of United States policymaking. Where should they be looking? Who should they be talking to now?

Trump’s tweets remain the best original source. Trump won the nomination and the general election by going directly to the public. Over 50 million Americans follow Trump on Twitter and Facebook. The Washington-New York media have become completely irrelevant to the Trump Administration and to Trump’s America.

President Trump has revolutionized the way policy is created, promoted, and implemented. The establishments within the Federal Government, Congress, media, academia, and policy forums, still do not have a clue about what is happening before their eyes.

America’s post-Cold War drift through four failed Presidents has come to an end.

Reagan won the Cold War by using skills he developed in movies and television to command the world stage. Those skills destroyed the Soviet Empire, relaunched the U.S. economy, and redefined the role of government. Trump is using his business and reality television skills to command the world stage for himself and the United States. Like Reagan, Trump is seeking to defeat tyranny, in this case radical Islam, relaunch the U.S. economy, and not just redefine, but completely reinvent government. The establishment dismissed Reagan until he succeeded. The establishment is dismissing Trump, and will be just as embarrassed should he succeed.

Conservative talk radio speaks for Trump and puts his actions and tweets into context. They aggressively expose the liberal media and the Democrats when they promote fake news and conspiracies about Trump. Trump watches Fox news, listens & calls into conservative talk radio, and avidly follows their social media posts. Each validates the other. The most articulate and insightful conservative commentators are Rush Limbaugh, Mark Levine, and Chris Plante. Washington-based WMAL radio hosts all three.

Science and Innovation Minister Paul Goldsmith has welcomed the signing of a ground breaking bilateral international science agreement between New Zealand and Australia at the Leaders’ meetings in Queenstown today.

The Australia – New Zealand Science, Research and Innovation Cooperation Agreement is a commitment to valuable collaboration across the innovation and science systems, and between researchers and innovative companies, on both sides of the Tasman.

“International agreements bring new knowledge, ideas, people, technology and investment into New Zealand’s science and innovation system. These partnerships also contribute to the export of the unique research and innovation generated in New Zealand,” says Mr Goldsmith.

“Our collaboration with Australia in science and innovation is already extensive and constructive. This Agreement sets out a clear work programme that will provide a focus-point for our cooperation into the future.

“New Zealand’s role as foundation investors in the Australian Synchrotron is a prime example of that collaboration, and means we now have access to a facility which can assist in the development of everything from forensics, to surgical tools, to understanding environmental issues.”

Synchrotron users vary from universities and Crown Research Institutes, through to the private sector and high-tech start-ups.

“With this new agreement, we can further enhance our scientific links for the benefit of both Australia and New Zealand,” Mr Goldsmith says.

Key initial proposals in the work programme include mapping collaborative research opportunities, research infrastructure planning and investment, standards and measurement research and the exchange of experts, knowledge and expertise.

The Agreement also provides for a wide array of future initiatives such as common science priorities, working together in other international endeavours and the promotion of a trans-Tasman innovation ecosystem for talent and investment attraction.

More information on the Agreement and associated new initiatives can be found on the MBIE website, HERE.

|  A Beehive release  |  February 17, 2017  ||

The annual Australia-New Zealand Leaders’ talks have taken the cooperation between our two countries forward in a number of areas, Prime Minister Bill English says.

Mr English met with Prime Minister Turnbull in Queenstown today to discuss common approaches to bilateral and international issues, including trade and science and innovation.

Mr English also thanked Mr Turnbull for Australia’s offer of support for those fighting the fires on the Port Hills in Christchurch.

“Australia is our closest friend and ally.

“A friendship is never stronger than in times of need and New Zealand is very appreciative of the understanding Australians have shown those in Christchurch this week.” Mr English says.

The two Prime Ministers also discussed their joint commitment to promoting open markets and removing trade barriers.

“The annual meeting is an opportunity for a wide-ranging discussion and is a reflection of the closeness of trans-Tasman ties,” Mr English says.

“The trans-Tasman trade and economic relationship provides an excellent model for deeper economic integration and we continue to build on that foundation as we engage with other partners.

“We want to help our traders and our consumers take advantage of the opportunities in the Asia-Pacific region and beyond.”

The Prime Ministers also confirmed that in light of the US decision not to ratify the TPP, Australia and New Zealand will work together as they engage with other TPP members on the way forward for the Agreement.

The Leaders’ meeting included the signing of an agreement that will better integrate Australia and New Zealand’s science, research and innovation agendas by enabling collaboration between researchers and innovative companies on both sides of the Tasman.

The ongoing work towards a Single Economic Market was also on today’s agenda with a strong commitment expressed from both sides to continue to find ways to make it easier to operate across the trans-Tasman market.

Mr English welcomed Prime Minister Turnbull’s announcement of greater flexibilities in the implementation of the pathway to citizenship for New Zealanders who are long-term residents in Australia. The pathway recognises the importance of the bilateral relationship and the strong people links between the two countries.

The Prime Ministers also discussed the current global security environment and reiterated their commitment to working together to respond to regional and international challenges.Related Documents

Joint Statement - Leaders Meeting 17 February 2017 (pdf 108.22 KB)

The Reserve Bank will continue to engage with stakeholders about its proposed ‘Dashboard’ approach to quarterly disclosure for locally incorporated banks.

The dashboard aims to enhance market discipline by making key information on locally incorporated banks available on the Reserve Bank website in a timely manner and in an accessible format which can facilitate comparisons across banks.

The Reserve Bank ran a consultation on the dashboard concept last year, and has today published a summary of submissions.

Deputy Governor Grant Spencer said all 18 submitters were supportive of the Reserve Bank’s objective to improve the effectiveness of public disclosures by banks, but some raised issues about publication timing, control of the data published, data comparability and the proposed inclusion of short term liquidity metrics.

“After carefully reviewing all feedback, the Reserve Bank considers that the concerns raised about the Dashboard proposal should be able to be addressed, and the Dashboard remains the Bank’s preferred option to enhance market discipline by increasing the effectiveness of the bank disclosure regime.

“The Bank will further engage with submitters and stakeholders in the coming months, to discuss possible refinements to the dashboard concept and the issues raised during consultation.”

Submissions received as part of the dashboard consultation are available on the Reserve Bank’s website. This consultation was subject to the Bank’s new policy to publish submissions by default unless submitters request otherwise.

More information:Summary of submissions (PDF 163KB)Submissions receivedConsultation document – released September 2016 (PDF 1MB)

Bloomberg View columnist Terry Cowen writes

What would you think of a Western democratic leader who was populist, obsessed with the balance of trade, especially effective on television, feisty and combative with the press, and able to take over his country’s right-wing party and swing it in a more interventionist direction?

Meet Robert Muldoon, prime minister of New Zealand from 1975 to 1984. For all the comparisons of President Donald Trump to Mussolini or various unsavory Latin American leaders, Muldoon is a clearer parallel case.

Some of the similarities are striking. Muldoon often made rude or unusually frank comments about foreign leaders (including U.S. President Jimmy Carter and the Australian prime minister), and his diplomats worked hard to undo them. When Muldoon spoke, he so often made the issue about him. His slogan was “New Zealand -- The Way You Want It.”

His most significant initiative was called “Think Big,” and, yes, it was designed to make New Zealand great again. It was based on a lot of infrastructure and fossil fuels investment, including natural gas, and it was intended to stimulate the country’s exports and remedy the trade deficit. Because New Zealand’s parliamentary system of government has fewer checks and balances than the American system, Muldoon got more done than Trump likely will.

> > > Continue to read the full article   |  February 13, 2017  ||

SHANGHAI, Feb 10 (Reuters) - New Zealand Prime Minister Bill English and Chinese Foreign Minister Wang Yi agreed to work together to support free trade and globalisation when they met in New Zealand's largest city, Auckland, China's foreign ministry has said in a statement.

The pair met on Thursday and discussed launching negotiations to upgrade an existing bilateral free trade agreement and cooperate in sectors such as infrastructure, tourism and judicial enforcement, said the statement published late on Thursday on the ministry's website.

"Hand in hand, we should protect the international trade system, build the open economy, and try to start upgrading the negotiation of the free trade agreement," it quoted Wang as saying.

New Zealand was the first Western country to sign a free trade agreement with China in 2008. China is now New Zealand's largest goods export partner, with New Zealand exports to China at NZ$12.2 billion ($8.54 billion) in the year to June, 2016.

During the meeting, English also welcomed Chinese enterprises to invest in New Zealand, while Wang said he hoped New Zealand could support China's One Belt, One Road initiative with its infrastructure projects.

The Chinese foreign ministry also said that English spoke highly of Chinese President Xi Jinping's speech at the 2017 annual meeting of the World Economic Forum, which offered a vigorous defence of globalisation and signalled Beijing's desire to play a bigger role on the world stage.

It did not say whether the two had discussed the Trans-Pacific Partnership (TPP) trade pact.

New Zealand and Australia have said that they hope to salvage TPP by encouraging China and other Asian countries to join the trade pact after U.S. President Donald Trump kept a promise to abandon the accord.

China has been playing up its role as a steadying force from global trade to climate change amid a turbulent start by new U.S. President Donald Trump, whose first weeks in office have been marked by media feuds and protests. (Reporting by Brenda Goh; Editing by Michael Perry)

Sue Suckling, Chair of Callaghan Innovation, is pleased to welcome Ms Crone to lead the next phase of the organisation’s development, following its establishment and consolidation phase under the inaugural CEO.

“Vic brings a track record of leading and implementing organisational strategy to achieve challenging outcomes, through a customer-driven approach and building the strong organisational culture necessary to deliver results.”

“Her significant executive and governance experience in the tech and innovation sector, and her broader profile, also position her well to drive Callaghan Innovation’s connectedness with all key stakeholders in the innovation ecosystem,” says Ms Suckling.

Ms Crone was previously Managing Director Xero, NZ and New Markets, following executive roles at Chorus and Telecom New Zealand. She is an Independent Director on the Boards of a number of companies in the tech sector.

The Board and Ms Crone are also pleased to announce that Hēmi Rolleston has been appointed to the new role of General Manager Sectors, Māori Economy and Programmes, where his proven expertise in driving external engagement can be more broadly applied to the organisation’s wider client base. Mr Rolleston was previously Callaghan Innovation’s GM Māori Economy and acted as the Interim CEO while the recruitment process was being completed. During the interim period Mr Rolleston implemented significant initiatives to increase Callaghan Innovation’s responsiveness to customers. Ms Crone is very excited to work with Mr Rolleston to continue to drive this forward.

Callaghan Innovation was established in 2013 to help New Zealand businesses in the High Value Manufacturing and Services sector to commercialise innovation, lift international competitiveness and contribute to economic growth. Key to achieving its mission is its role as integrator in the innovation system, making it easier for businesses at all levels of maturity to access the support they need to move further up the value chain.

“This is an exciting time for Callaghan Innovation and for the tech sector, with a new CEO who brings a fresh perspective and proven skills in leading change, complemented by the strengths and experience of the wider executive team,” says Ms Suckling.

Ms Crone takes up the role of CEO on 28 February.

|  A Callaghan Innovation release  |  February 9, 2017  ||