Some success for N.Z. investment mission

Press, 26 March 1980, Page 19

Some success for N.Z. investment mission

NZPA Singapore The foray of the special unit of the Trade and Im. dustry Department which was formed to pursue foreign capital for New Zealand development, seemed successful “to a degree,” says Mr David Harcourt, of the investment unit of the department. He has completed a threeweek tour of Hong. Kong, Malaysia and Singapore pfobing prospects for New Zealand winning a bigger share of Asian capital investment. ..." -It was apparent that his mission spotlighted .beliefs .'held about policies which inhibit the flow of foreign investment to New Zealand. -.Among them were: im- ■ pressions that New Zealand’s immigration policies are Tnore restrictive to investors -than they are; doubts about altitudes toward the repatriation of capital,, and fears that labour relations inhibit prospects of a worthwhile return on capital. It was emphasised to Mr Harcourt that this country needs much greater promotion in the region if it is to draw the attention of Asian businessmen with money available for investment.

Against a background of extreme hotel bed shortages in Auckland the possibility

of at least two hotel groups in Asia entering the New Zealand hotel industry represented a step forward. Government planners believe that if the hotel room shortage in Auckland can be relieved prospects for greater tourist growth elsewhere in the country will soar. This is because of Auckland’s role as the “international . gateway” to New Zealand. Auckland hotels are estimated to have a 90 per cent occupancy rate for 52 weeks of a year, and Tourist authorities estimate that at least another. 600 hotel beds are needed urgently. It was clear from the start of Mr Harcourt’s mission that some confusion existed as to whether-it was to be a promotional one or a factfinding exercise. By its completion it had developed into something of both, with the envoy conducting a seminar for businessmen in Singapore, and frequent newspaper interviews, as well as individual meetings with business executives. It was also apparent that an eventual judgment on the exercise will depend to a large extent on the willingness of the Government to follow up what ha-s been done.

Immediate requirements centre on the dispatch of a special investment mission to present specific opportunities for foreign investors, and an Asian regional promotion campaign to focus aN tention on New Zealand as a “rising star” in the investment field. It is argued that an investment mission, perhaps headed by at least middlelevel Government figures to back up the case made by Mr Harcourt, is essential. A promoton campaign to stimulate interest in the impending visit of the mission would seem to be essential. Successful efforts have been made in the region to stimulate interest in the manufactured products the country has to offer Asian buyers. An investment promotion would probably boost interest in these products at the same time. The Harcourt mission seemed a useful start to the new era of changed attitudes in Wellington to attracting foreign investment capital. The follow-up seems crucial to the success of failure of his tour, particularly if New Zealand is going to succeed in drawing sufficient capital for its needs away from opportunities held out by its neai- neighbour, Australia.