16 February 2006

Aviation industry growth strategy supported

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Economic Development Minister Trevor Mallard today announced a $100,000 grant to help the Aviation Industry Association develop an export-led growth strategy for the sector.

"The Labour-led government is committed to working with business and industry groups to drive up levels of export-led economic growth. The aviation industry is currently facing several challenges, including strong competition in products and services from Asia and Eastern Europe," Trevor Mallard said.

"As a result, the Aviation Industry Association (AIA) is considering how it should approach export development activity, particularly regarding the export of training, engineering and other services."

The AIA covers about 300 firms involved in aviation related activities, including airport management, air rescue, agriculture aviation, air transport, engineering and maintenance, support services, manufacturing and flight training.

Trevor Mallard said the AIA regarded three primary areas in the aviation sector as having the best potential for sustained growth: Aviation engineering (including all facets of aircraft manufacture); Airport technologies, infrastructure and ground support (including the management/operation of airport terminals); and Aviation training and services (including engineering, pilot and operational training, consulting and operational services).

"The sector has very real export potential. This grant will help the industry hone that potential which could bring benefits not only to the industry, but also to the wider New Zealand economy," Trevor Mallard said.

The aviation export-led growth strategy will be developed and delivered in two stages over the next six to eight months.

Background: The Sector Initiatives Fund is a grant scheme for supporting industry-wide projects consistent with government economic social and environmental objectives that cannot be funded through other government projects. Priority is given to proposals that are supported by key stakeholders such as industry and local government and that have the potential for wider cross-industry application of benefits. Once a grant has been approved funds are only paid out on.

ENDS

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