By Wayne Mulligan
What can we expect in 2010? My reliable sources tell me that from the government we will receive a steady flow of pretty much the same in terms of policy. Tinkering with policy is a safe political strategy. We can expect some reduction in government spending, a big push for scale in departments and local government, a drop in personal income and business tax (to be offset with other taxes) and a focus on productivity through research innovation. Unfortunately most of these policies may still be unfavourable for New Zealand exporters and international entrepreneurs. This is a major flaw as exporters/entrepreneurs bring in the income.
What would Mull’s crystal ball want to see: Game-shifting policies that give New Zealand innovators, exporters and entrepreneurs a real lift. The crystal ball would like to see:
• Greater government investment in the commercialisation of research, science and technology. That includes assisting businesses grow their international networks, markets and positioning within the value chain.
• Peg the dollar for a term (other sophisticated countries do) so that speculative exchange investors are replaced with long term investors and to provide entrepreneurs and exporters
with certainty (remove volatility), again noting it is
entrepreneurs and exporters who actually bring in foreign earnings to New Zealand.
• Let’s not get caught up in ideology. Most of New Zealand’s major export businesses were born from some form of centralisation. And in many cases de-centralised after scale. Let’s not forget that developing economies are highly supported by central funding. Just check out Brazil, India and China (and now Europe, USA and UK – just refer to their 2009 government funded/tax funded rescue packages).
Now to another subject. The crystal ball says watch out in 2010 for some innovative Mäori businesses. These businesses could further assist New Zealand Inc. promote itself with unique points of difference. So watch out for:
1. Indigenous beverage businesses, notably wines, water, ales and beverage ingredients. These products and companies not only have indigenous images and brands, they also have unique stories and values.
2. Indigenous ingredient businesses, Aotearoa/NZ unique spices and herbs fused into New Zealand primary produce and the bio-actives from indigenous flora adding to a suite of exquisite neutraceutical, medicinal and therapeutic products.
3. Indigenous marketing and brands. A natural progression as businesses seek to move up the value chain. Providing a suite of offerings (food, beverage, technology, systems etc) to international markets and in doing so they develop connections to existing and new channels to enable their brands to get close to the end consumer.
4. Indigenous tourism businesses, the opportunity to launch a suite of unique cultural, cuisine and community experiences in Aotearoa/New Zealand. to international markets.
5. Indigenous technology businesses, where the next
generation of savvy entrepreneurs take a series of
technologies around multi-linguistic production and music innovations to market.
In concluding the best advice my crystal ball can give is to focus on wealth creation. Organisations that collect and re-distribute income from levies/taxes (government) generally do not have the incentive to offer policies that are fundamental to wealth creation. Further the crystal ball says 2010 will be a year when businesses should look at strengthening their product/service offerings to markets. Cost control remains important, however equally important will be ensuring Mäori take an aggressive approach to marketing and getting research on target segments, both international and domestic.
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