Given that 2011 was a rough ride for many, the government is welcoming news of new jobs and economic growth.
Last month it was announced that we are likely to see a $250 million a year increase to exports and 500 additional construction jobs in Taranaki. This comes as part of an agreement between the Todd Corporation and Methanex New Zealand to increase methanol production in Taranaki. 
Methanex is entering into a 10 year contract with Todd that enables it to restart the second methanol manufacturing train at its Motunui facility north of New Plymouth. We want and indeed need to see more of this type of business activity; it’s a way to prosperity and economic growth.
Countries struggling in the Eurozone provide ample example of how a country can fail, and as it fails, youth suffer most. In Spain youth unemployment has topped 50 per cent between ages 15 and 24.
While New Zealand has a higher than acceptable percentage of unemployed youth, unemployment in OECD countries overall is not particularly high. Yet the message is clear; we must grow the economy or we will find ourselves creating work – in effect buying our jobs. Digging a hole so you can fill it is as morale sapping as having no work at all.
Productivity and innovation have led to a lack of manual labour, something that affects the low-skilled and youth sectors of the population the most. We can lose a generation in this manner so, as a government, we see 2012 as the year of growing the economy and creating workforce entry for more people.
Our ability to do this will be enhanced by the Christchurch rebuild; as it gains momentum, so too will the need for workers both skilled and unskilled.  
For too long we have put off economic development due to a rowdy minority and, as a consequence, have fallen into the youth unemployment trap. In other parts of the world we have seen how disenfranchised youth have become violent. Now is the time to grow capacity in our economy. Our legislative framework must be reliable so people are comfortable investing money and creating jobs.
I’m looking forward to a better year in 2012. I expect to see a solid performance from the primary sector – one area where productivity and innovation has gone hand in hand with a decline in manual work. However, farming has not only become more sophisticated, it is also making solid gains, opening up opportunities for fit, enthusiastic young people to become employed and learn skills.
To other concerns now. It was great to see ECan and a response committee made up of experienced farmers move quickly and effectively to manage the second detection of Chilean needlegrass. To top this off, we now have the tools to deal with this pest long term.
I urge everyone to be vigilant and not assume you’re free of this pest plant or any other incursion. Biosecurity is not just a government responsibility, it’s everyone’s responsibility.     

Change affects us all in different ways and at different times. Change can be good or bad depending on the circumstances. Sometimes change is needed and at other times it’s not.

One change that certainly was needed was the massive improvement in our communications. Nothing illustrates the point more clearly than to leave the country for a time. I have been overseas for two weeks and yet I was able to keep up with what has been happening in Marlborough on a daily basis. 

From the other side of the world I could catch up with all the local news in The Marlborough Express online while the Dominion Post and the New Zealand Herald filled in the detail from around New Zealand. Having more free time meant I was actually able to study events far more closely than when at home and hurrying to meet all my commitments.  

I remember when a postcard was the quickest way to communicate with loved ones back home. These days postcards don’t quite cut it!
Armed with a device like an iPad people can have real-time discussions with family, friends and colleagues wherever and whenever they like.

To watch our two year old grandchild who is thousands of miles away peering into the screen and having a conversation about all manner of things did seem extraordinary. Such an event also did wonders for Lynnette, a slightly home sick grandparent missing that regular contact with the littlies.

Camping grounds and hotels all seem to have WiFi and it’s often free, underlining the fact that Facebook, Twitter and Skype rule the communications world we now live in.

While all this ‘connectivity’ can be invasive, managed well it adds volumes to the interaction we want with those we hold dearest. I am taken with Skype and the way it allowed me to show family in New Zealand exactly where I was – a 360 degree view of a medieval court yard or an ancient olive grove – technology made our holiday experience real for our family and friends back home.

Technology has made major strides in every direction. It’s only when we begin the long trip home that we are confronted with the reality of the distance between New Zealand and the rest of the world. Travel has also made me consider the distance our forebears travelled on small, uncomfortable and unsanitary sailing ships in order to settle in New Zealand. 
 
A 27 hour flight to New Zealand is very demanding but a particularly small challenge when compared to three months on the high seas. I guess what I’m trying to say is that travel puts a lot of things in better perspective.

A trip away had me thinking about the pace of change and how it has affected our ability to keep in touch; reinforcing the simple truth that we do indeed live in a global village. Change will continue while the where, how and why is beyond the scope of the average person. However I think we can all be sure that change will bring both positive and negative impacts upon our lives. The big challenge will be in our ability to adopt and adapt to change so we get the very best from it.
 

 

January is a time for optimism as we begin a fresh new year with anticipation and renewed enthusiasm.    
I wonder how many people are thinking about the investment opportunities that are likely to be coming their way as the year unfolds.
Immediately prior to Christmas the government confirmed the next steps in its mixed ownership programme to offer New Zealanders minority shareholdings in four state-owned energy companies and in Air New Zealand.  
The mixed ownership programme will have immediate appeal to anyone who lost money through the failed financial company fiasco – in fact I think most people considering investing money will be looking forward to the certainty and security of investing in good solid Kiwi companies.
In my view, if the government wants New Zealand to become a nation of savers and investors, it must partner private citizens in the development of modern infrastructure. Common sense tells us the government would rather be paying dividends to Kiwis rather that to overseas bankers.
Cabinet has already agreed that Mighty River Power should be the first company prepared for an initial public offering or IPO. This is most likely to happen in the third quarter of the year, subject to market conditions.
The government set a number of tests, including retaining majority government control and significant participation by New Zealand investors who will be at the front of the queue for shares – Treasury has confirmed that these tests can be met.
The programme is likely to involve a number of IPOs spread over the next three years or so and their timing will also depend on market conditions and company circumstances.
One of the most commonly asked questions regarding the mixed ownership programme is why Mighty River Power has been earmarked for the first IPO. Simply put, Mighty River Power is well positioned to take to the market and it is big enough to offer a significant volume of shares to the investing public. Remember, the government retains a majority stake of at least 51 per cent.
The government will always retain at least 51 per cent of the mixed ownership companies on behalf of all New Zealanders. Additional to this, no other shareholder will be able to buy more than 10 per cent in all cases. Ministers also expect around 85 to 90 per cent New Zealand ownership of the mixed ownership companies.
To ensure New Zealanders are at the front of the queue for shares the government will control the allocation of shares and decisions supporting that will be considered early this year.
Let me be clear here – the mixed ownership model is quite different to the state asset sales of the 1980s and 1990s and it will be popular among New Zealand investors who will be at the front of the queue for shares.
A New Year means new opportunities and the mixed ownership programme will certainly provide attractive opportunities for investors. It will also reduce the amount of extra debt the government would otherwise need to borrow from foreign lenders to pay for new assets – a win-win scenario in anyone’s books.