1 00:00:00,200 --> 00:00:02,920 Speaker 1: So the Prime Minister has laid out his vision to 2 00:00:02,920 --> 00:00:05,600 Speaker 1: grow the economy, because today was the day he presented 3 00:00:05,640 --> 00:00:07,360 Speaker 1: his State of the Nation speech. He did it this 4 00:00:07,400 --> 00:00:10,480 Speaker 1: afternoon at one o'clock. In the speech, he said a 5 00:00:10,640 --> 00:00:15,120 Speaker 1: culture of saying no is holding us back. And he 6 00:00:15,160 --> 00:00:17,560 Speaker 1: also announced that they're going to create a new government 7 00:00:17,640 --> 00:00:22,840 Speaker 1: agency to attract foreign investment. So the Trade and Investment 8 00:00:22,880 --> 00:00:26,560 Speaker 1: Minister is Tom McLean and McLay sorry and he joins us. 9 00:00:26,480 --> 00:00:28,600 Speaker 2: Now hall it todd, Hey, good afternoon. 10 00:00:28,920 --> 00:00:31,800 Speaker 1: So the Taxpayer's Union said people don't invest in the 11 00:00:31,880 --> 00:00:34,320 Speaker 1: country because a government agency tells them to. 12 00:00:34,360 --> 00:00:37,040 Speaker 3: So what do you say to that, Well, they're right, 13 00:00:37,200 --> 00:00:40,040 Speaker 3: but they certainly don't invest in a country when government 14 00:00:40,080 --> 00:00:42,479 Speaker 3: agencies tell them not to. And I think that's very 15 00:00:42,520 --> 00:00:45,440 Speaker 3: much been the case in New Zealand. It's harder to 16 00:00:45,479 --> 00:00:48,480 Speaker 3: invest here than it should be. And if we take 17 00:00:48,840 --> 00:00:52,120 Speaker 3: Singapore as an example, they had thirty one proof percent 18 00:00:52,200 --> 00:00:54,920 Speaker 3: increase in their foreign direct investment last year. We had 19 00:00:54,960 --> 00:00:58,319 Speaker 3: about five percent. So they Ireland also doing something well 20 00:00:58,360 --> 00:01:00,600 Speaker 3: that we're not. That the agents that we have in 21 00:01:00,600 --> 00:01:03,080 Speaker 3: New Zealanders models on there is, but it's going to 22 00:01:03,080 --> 00:01:05,680 Speaker 3: be very, very different because the taxpayer. 23 00:01:05,360 --> 00:01:06,040 Speaker 2: Union is right. 24 00:01:06,360 --> 00:01:08,280 Speaker 3: If I was an investor, I wouldn't come and ask 25 00:01:08,319 --> 00:01:11,240 Speaker 3: a government department to run my company for me. I 26 00:01:11,319 --> 00:01:13,520 Speaker 3: would find the experts and know what they're doing. And 27 00:01:13,640 --> 00:01:15,560 Speaker 3: part of the job chrys Luction's given me is to 28 00:01:15,600 --> 00:01:18,320 Speaker 3: find those New Zealanders here and overseas that are already 29 00:01:18,360 --> 00:01:21,479 Speaker 3: active in investment and in doing deals, and to attract 30 00:01:21,520 --> 00:01:24,000 Speaker 3: their talent so that we can get our fair share 31 00:01:24,440 --> 00:01:26,759 Speaker 3: of foreigners money in New Zealand to grow the economy. 32 00:01:26,840 --> 00:01:30,199 Speaker 1: Now, you are right, Ireland and Singapore have government backed 33 00:01:30,240 --> 00:01:34,400 Speaker 1: investment to agencies. But the thing about those sovereignties is 34 00:01:34,440 --> 00:01:37,040 Speaker 1: that they also have tax breaks for foreign corporates. So 35 00:01:37,360 --> 00:01:39,080 Speaker 1: do we need to look at corporate tax rates to 36 00:01:39,120 --> 00:01:40,000 Speaker 1: become more attractive. 37 00:01:40,920 --> 00:01:43,320 Speaker 3: Well, we certainly need to make sure that our tax 38 00:01:43,440 --> 00:01:47,520 Speaker 3: system is competitive, particularly to Australia, but that's not the 39 00:01:47,560 --> 00:01:50,440 Speaker 3: only reason that they have investment in those parts of 40 00:01:50,440 --> 00:01:50,880 Speaker 3: the world. 41 00:01:51,160 --> 00:01:53,360 Speaker 2: They often make it a lot easier than we do. 42 00:01:53,640 --> 00:01:56,040 Speaker 3: I remember many years ago meeting somebody from Malaysia that 43 00:01:56,120 --> 00:01:58,160 Speaker 3: was looking to invest in a hotel in New Zealand. 44 00:01:58,440 --> 00:01:59,960 Speaker 2: They chose Australia. 45 00:02:00,120 --> 00:02:02,040 Speaker 3: In the end, it was a very big investment because 46 00:02:02,040 --> 00:02:03,840 Speaker 3: when they turned up here and talking to a bit 47 00:02:03,880 --> 00:02:05,920 Speaker 3: of the government, they were sent off to the Auckland 48 00:02:05,960 --> 00:02:08,480 Speaker 3: Council to talk to some guy whose job it is 49 00:02:08,520 --> 00:02:11,320 Speaker 3: to work through consents and they decided to take their 50 00:02:11,320 --> 00:02:14,639 Speaker 3: capital elsewhere. So what we will be doing is finding 51 00:02:14,680 --> 00:02:16,400 Speaker 3: some of the best people in New Zealand, some will 52 00:02:16,400 --> 00:02:19,519 Speaker 3: be in government, many will not be, to join us, 53 00:02:19,800 --> 00:02:21,680 Speaker 3: and to put the welcome mat out to go and 54 00:02:21,720 --> 00:02:24,200 Speaker 3: meet these people around the world and to put those 55 00:02:24,240 --> 00:02:27,720 Speaker 3: deals together for them with New Zealand companies, to bring 56 00:02:27,720 --> 00:02:31,600 Speaker 3: the investment here for new companies in infrastructure and so on. 57 00:02:31,919 --> 00:02:32,120 Speaker 2: You know. 58 00:02:32,160 --> 00:02:34,320 Speaker 3: But I think the example of Ireland and Singapore is 59 00:02:34,360 --> 00:02:36,360 Speaker 3: a very good one for us to model ourselves on 60 00:02:36,400 --> 00:02:39,520 Speaker 3: and emulate because anything they've done on taxis side, they 61 00:02:39,520 --> 00:02:42,160 Speaker 3: are much better than we are, and they are wealthy, 62 00:02:42,440 --> 00:02:44,360 Speaker 3: wealthier countries for that. 63 00:02:45,120 --> 00:02:48,200 Speaker 1: So that's a note to corporate taxt breaks. 64 00:02:48,000 --> 00:02:50,920 Speaker 3: Well, it's not one of the competences that invest New 65 00:02:51,000 --> 00:02:51,720 Speaker 3: Zealand has. 66 00:02:52,400 --> 00:02:54,720 Speaker 2: Our job will be to get people to come in 67 00:02:54,760 --> 00:02:55,320 Speaker 2: and invest here. 68 00:02:55,600 --> 00:02:57,919 Speaker 3: I was in the UA with the Prime Minister last 69 00:02:57,919 --> 00:02:59,639 Speaker 3: week and we met with one of the solimal wealth 70 00:02:59,680 --> 00:03:01,880 Speaker 3: funds and they said to us, we haven't invested in 71 00:03:01,880 --> 00:03:04,120 Speaker 3: New Zealand because we thought maybe you wouldn't want us to. 72 00:03:04,200 --> 00:03:05,799 Speaker 2: You might look at other parts of the world. 73 00:03:06,120 --> 00:03:09,880 Speaker 3: Look, they're investing pretty significantly with their one point seven 74 00:03:10,040 --> 00:03:14,120 Speaker 3: trillion dollars in renewable energy and bio energy, and we've 75 00:03:14,160 --> 00:03:16,840 Speaker 3: got big opportunities there. They asked me if we issue 76 00:03:17,320 --> 00:03:20,080 Speaker 3: new banking licenses here because they have gone in and 77 00:03:20,120 --> 00:03:22,639 Speaker 3: set up domestic banks and other parts of the world, 78 00:03:22,960 --> 00:03:26,040 Speaker 3: so that they were not sure that we, you know, 79 00:03:26,080 --> 00:03:28,799 Speaker 3: would welcome their investment, or we thought we were too 80 00:03:28,840 --> 00:03:32,200 Speaker 3: small in itself tells we were missing big opportunities. But 81 00:03:32,280 --> 00:03:35,240 Speaker 3: you should we should judge the success of this new 82 00:03:35,280 --> 00:03:38,320 Speaker 3: agency not on the number of reports that have done. 83 00:03:38,480 --> 00:03:40,920 Speaker 3: I don't want reports on the number of deals that 84 00:03:40,960 --> 00:03:42,840 Speaker 3: are done and the money that comes into New Zealand 85 00:03:42,920 --> 00:03:44,400 Speaker 3: distract jobs and growsy economy. 86 00:03:44,520 --> 00:03:47,240 Speaker 1: So will you be going out into the employment workforce 87 00:03:47,360 --> 00:03:49,920 Speaker 1: and shoulder tapping people who actually have the skills to 88 00:03:49,960 --> 00:03:51,360 Speaker 1: go out and sell New Zealand. 89 00:03:52,200 --> 00:03:54,320 Speaker 3: Yes, we will be having a look in New Zealand 90 00:03:54,400 --> 00:03:57,200 Speaker 3: and New Zealanders around the world. I with CHROs sucks 91 00:03:57,240 --> 00:03:59,560 Speaker 3: and when we're overseas meet many of them. They got 92 00:03:59,560 --> 00:04:02,200 Speaker 3: really really good ideas. You know, it will be a mix. 93 00:04:02,280 --> 00:04:05,120 Speaker 3: I think from New Zealand Trade Enterprise. We have a 94 00:04:05,160 --> 00:04:08,400 Speaker 3: group there that does investment advice already they are good 95 00:04:08,400 --> 00:04:10,680 Speaker 3: at what they do, but we want a single focus 96 00:04:10,720 --> 00:04:13,320 Speaker 3: and we want the expertise and the experience of people 97 00:04:13,600 --> 00:04:15,680 Speaker 3: who have put deals together. So we will be looking 98 00:04:15,720 --> 00:04:18,159 Speaker 3: in New Zealand and around the world for the talent 99 00:04:18,200 --> 00:04:22,280 Speaker 3: that we need. We have thirty eight percent a foreign 100 00:04:22,320 --> 00:04:25,919 Speaker 3: director investment are compared to GDP. The OECD average is 101 00:04:25,920 --> 00:04:29,120 Speaker 3: fifty percent. We should aim for that and actually try 102 00:04:29,160 --> 00:04:31,279 Speaker 3: and exceed it. It's going to take some time to 103 00:04:31,360 --> 00:04:33,000 Speaker 3: work out the best ways to do this, but we're 104 00:04:33,040 --> 00:04:34,080 Speaker 3: not going to take forever. 105 00:04:34,400 --> 00:04:37,040 Speaker 2: We want the first deals rolling through the door this year. 106 00:04:37,200 --> 00:04:38,760 Speaker 1: Good luck to you and I thank you. That is 107 00:04:38,800 --> 00:04:39,920 Speaker 1: Tomic Clay, Trade Minister. 108 00:04:40,520 --> 00:04:43,680 Speaker 3: For more from Hither duplessy Ellen Drive, listen live to 109 00:04:43,800 --> 00:04:46,839 Speaker 3: news talks. It'd be from four pm weekdays, or follow 110 00:04:46,880 --> 00:04:48,640 Speaker 3: the podcast on iHeartRadio.