Helping Kiwis save
Proposed legislation to encourage New Zealanders to develop better long-term savings habits was introduced to Parliament by Finance Minister Michael Cullen this week. Dr Cullen said the KiwiSaver Bill gives New Zealanders more choices for securing their financial futures and more confidence about retirement years. KiwiSaver will be a voluntary scheme for all full and part-time employees, aged 18 - 65 years. People can elect to put four or eight per cent of their gross salary automatically into a savings fund and they will have personalised accounts that follow them with job changes. The government will kick-start each person's account with a contribution of $1000 to be locked in until retirement. New employees will be automatically enrolled in KiwiSaver and have six weeks to stay in or opt out. Existing employees, self-employed and beneficiaries will also be able to opt in. The scheme will also allow some savers to buy their first home. Eligible people ready to buy their first home, and who have been KiwiSaver members for at least three years, will get government help with a deposit. Dr Cullen hailed KiwiSaver as a world-leading scheme praised by leading pension experts overseas and the Economist magazine. KiwiSaver is expected start on April 1, 2007.

Incubator programme success
Ninety-eight companies so far have graduated from the government's incubator business mentoring and support programme, with thirty-nine already showing good high growth potential. Economic Development Minister Trevor Mallard said this week the government's support for incubators recognises the significant role they play in ensuring fledgling entrepreneurs have the chance to establish businesses to commercialise innovative ideas. It is vital New Zealand businesses embrace innovation as it provides the opportunity to lift economic performance and better integrate into the global economy, Trevor Mallard said. Business incubators have received over $13 million through New Zealand Trade and Enterprise's annual incubator support programme, since it started in 2001. Of the 98 companies to graduate from the government-funded programme, 39 are classified as high growth companies with the potential to become multi-million dollar international enterprises. These companies have raised almost $37 million in external capital to support their growth, Trevor Mallard said. Last year 157 companies were resident in incubators employing 743 people and earning more than $27 million.

Promoting trade ties with Korea
Cabinet Minister Jim Sutton has been in Korea this week promoting a closer bilateral trading relationship, and exploring a future Free Trade Agreement between the two countries. Mr Sutton was to speak at a seminar for Korean Parliamentarians and other guests, jointly hosted by the Korean National Assembly and the New Zealand Embassy in Seoul. The Minister and diplomat David Walker, head of the New Zealand team currently negotiating an FTA with China, were also working to reassure the Korean agricultural sector that New Zealand exports pose no threat to local producers. Mr Sutton said there are few countries with more complementary economies than Korea and New Zealand. Although an FTA may be some way off, it would provide real benefits to both countries, he said. The counter-seasonal nature of the two countries' growing cycles would ensure a steady supply of high-quality agricultural produce year round for both markets.

Showcasing new ways in business thinking
Economic Development Minister Trevor Mallard kick started the week with the launch of newthinking06, a week showcasing innovation and success in business. With events based at Auckland's Sky City Convention Centre, the week was focused on key sectors where New Zealand is creating competitive advantage, including information and communications technology, biotechnology and the creative sectors. Trevor Mallard said to create higher standards of living for all Kiwis, New Zealand needs more firms that are innovative and that can successfully compete at the leading edge in offshore markets. New Zealand's future will be determined by the way our innovations are commercialised and taken to the world, he said. Newthinking06 was designed to provide entrepreneurs and businesses with tools and networks to achieve this, the Minister said. Newthinking06 brought together activities organised by NZ Bio, Incubators New Zealand, Kiwi Expat Association, the Design Institute of New Zealand, New Zealand Venture Capital, Connect New Zealand and New Zealand Trade and Enterprise. It included seminars, exhibitions, workshops, and panel discussions and presentations of the NZ Bio Awards, Telecom NZ Incubator Awards and the World Class NZ Awards.

Budget 2006 on 18 May
Finance Minister Dr Michael Cullen will deliver his seventh budget on Thursday 18 May. Dr Cullen said New Zealand needed more globally competitive firms and this year's Budget will continue efforts towards building a more dynamic, knowledge-based economy. A more affluent economy is essential to delivering more choice and security for families young and old, he said. The first budget of the new Parliamentary term would reinforce the good progress the Labour-led government had made. Dr Cullen reiterated that restraint would be the watchword for Budget 2006, adding that there was very little room for significant fiscal loosening. The government wanted to remain fiscally responsible, Dr Cullen said.