Canadians keen on NZ Expertise 

Canada is expected to pull out all stops to attract New Zealand's skilled and export-orientated companies ...

National Office - Canadians keen on NZ expertise

THE EXPORTER September 2007 - The Exporter/The Independent Financial Review September 2007

By Denise McNabb

Canada is expected to pull out all stops to attract New Zealand's skilled and export-orientated companies when direct Air New Zealand flights between Auckland and Vancouver begin in November.  New Zealand exporters who take up the government's offer of help with foreign investment to lift international business standing are firmly in Canada's sight.

There are already numerous joint ventures. New Zealand skills are used in the energy sector, where Methanex Gas, for instance, provides expertise at the extensive oil sands projects in North Albert and Saskatchewan. Kiwi beekeepers export their bees to British Columbia to alleviate a shortage of bees needed for pollinating the country's canola crops. New Zealand exporters such as Delegats' Oyster Bay and Kiwi lamb are staple Canadian home and restaurant fare.
But the potential is far greater, says InterVista boss Mike Tretheway. The Canadian economics expert and aviation consultant, is no stranger to New Zealand, having done extensive reports for Air New Zealand for its alliance proposal with Qantas and for submissions to the Ministry of Economic Development's regulatory review of pricing in monopolistic situation.

His company has six offices worldwide and Tretheway says he's looking to open his seventh in New Zealand, not Australia. Tretheway says Canada is a good environment for New Zealanders looking to increase their global aspirations.
It's a country with entrepreneurial activity - the zipper, Blackberries, Bombardier planes and Imax theatre are Canadian creations.  Around 8.5% of Canada's population is classed as entrepreneurs, with women leading the march.
There are 821,000 female entrepreneurs and they increasing at an annual rate of 5.5% a year compared to male entrepreneurs at 2.2%.  He says Canadians think they are on a parallel with New Zealand with similar business mainstays - services, agriculture and manufacturing.

Canada has the much larger population, 33.4 million compared to New Zealand's 4.2 million, a similar size to British Columbia where Air New Zealand will introduce direct flights from Auckland on November 2.
Canada is New Zealand's eighth largest tourist market, with 2% of total inbound arrivals, estimated to be worth $170 million to the economy each year.

Canada recorded 37,644 entries from New Zealand last year which is expected to lift with specific targeting on the travellers and conventions and meetings markets. Vancouver is building a spectacular new convention centre on its harbour front.

Trade accounts for most of the business between the two countries.  Like New Zealand, Canada's exports are mostly manufactured but they are different products. The automotive industry is Canada's biggest exporter at 20.7%, followed by machinery and equipment (20.6%), industrial gas and material (14.2%) energy (10%), forestry (7.4%), commercial aerospace (6.9%) and travel (3%). Tretheway says Canada's growth was strong in the 1990s and is now more robust than its US neighbour, where he says, there is a 25% risk of the country going into recession.
Like New Zealand Canada is trade orientated. Exports, at C$400 billion, account for a third of the economy. Gross domestic product in 2006 was C$1178 billion. New Zealand's GDP, by comparison, was just $107 billion.
Tretheway says Canada's GDP growth in 2006 was 2.7% compared to New Zealand's 1.5%. Canadian inflation last year was 2%; New Zealand, 3.8%. He says the unemployment rate at 6.4% is considered close to full employment. New Zealand's rate is 3.8%.

The oil sands of Canada's north may proved to be the country's largest export, says Trethaway.  Today, the oil price is hovering around US$79 a barrel. The sands produce 2 million barrels of oil a day which is expected to lift soon to 5 million barrels. Tretheway says it was envisaged if the price stayed above $US45 it would lift to 15 million barrels a day, providing huge scope for New Zealand's energy businesses to expand.  "Canada is also well placed to provide alternative energy," he says.  "Vancouver is the largest centre in the world for fuel cell research." Canada's north is also the six largest world producer of diamonds and "it may end up the second largest".

* Denise McNabb travelled to Vancouver as a guest of Air New Zealand.

Source: The Independent Financial Review - Copyright 2007