Nathan Guy
2 SEPTEMBER, 2010
Speech to the Marine Transport Association

Good morning everyone - thank you for inviting me to speak today.

It's great to be in Tauranga, and there have been of plenty of politicians here recently.

The Prime Minister was here a few months ago, opening the North Island Mussel Processor's factory. This is a $23 million state-of-the-art facility, and it has the largest half-shell capacity in the world.

The Transport Minister Steven Joyce was also here recently, announcing that the new Tauranga Eastern Link Road will be a toll road. This means that construction can start early next year, seven years ahead of schedule.

Tauranga is of course is well known for its busy marine sector. I have a strong interest in maritime issues because I represent the coastal electorate of Otaki.

I'm also a recreational boatie and enjoy fishing in the sea or lakes.

Last year at your conference in the Marlborough Sounds I noted the importance of your industry to New Zealand's economy and to our local communities.

Many jobs and lives depend on your industry operating safely and smoothly.

Today I'd like to build on some of these themes I talked about last year.

I'd like to give you a quick update on the economy and tourism, which is very important to your sector, and then talk a bit about issues involving Maritime NZ.

The economy

It's been a tough few years for the New Zealand economy - we went into recession earlier than many other countries, and some fundamental weaknesses in our economy were exposed.

Much of our growth over the last decade was driven by spending and debt, which was unsustainable.

The aim now is to rebalance our economy towards growth driven by productive investment and exports.

Since being elected the Prime Minister has made it clear his number one priority is to lift the performance of the economy.

Economic growth means more opportunities for people, better jobs and higher pay.

To achieve this, the government has a major focus on:

• reforming the tax system

• encouraging savings

• improving education and skills

• investing in infrastructure, like roads, rail and broadband

• cutting red tape

• getting better value from public spending.

We are now back on a path of steady growth, but this will be a different kind of recovery to those seen previously in New Zealand.

It will be patchy at times, due to the uncertain global environment and the need for businesses and households to pay down large stocks of debt.

The good news though is that we've come out of the global financial crisis in much better shape than many other nations.

Tourism

As you probably know, tourism is New Zealand's biggest overseas earner. It's crucially important to your industry, and the economy as a whole.

The Prime Minister John Key is also the Minister of Tourism, and as part of the Budget this year he announced $30 million in new funding for tourism.

$25 million of this will go into overseas marketing to encourage more visitors here, with Australia as one of the main targets.

Of course next year is the Rugby World Cup, which will be the biggest event ever hosted in this country. We are expecting around 85,000 internationals visitors to our shores, and they will want to see and experience the best New Zealand has to offer.

For many visitors this will mean getting out on the water, and the experiences they have with you will be carried back home with them.

So it's important that we also focus on the longer-term opportunities the Rugby World Cup presents, not just the few weeks when the rugby games are happening.

This should be about generating repeat business and ‘word of mouth' endorsement of the New Zealand experience to friends and family in other countries.

This takes me to the other areas I want to talk about today - safety and value for money.

Safety

The government's goal for maritime policy is simple - we want safer, cleaner and more secure seas.

The key to this is the need for everyone in the maritime sector to work together to keep raising the bar.

There will always be challenges and tensions for operators and regulatory agencies to overcome within any system.

But the government endorses the principle that operators are best placed to take personal responsibility for their own safety during day to day operations.

Overall, the maritime transport sector has a good safety record, but there is always be room for improvement.

I commend the industry's increased reporting of accidents, incidents and mishaps, because it provides a realistic information base from which all operators can learn.

The government has charged Maritime New Zealand with leading and supporting the maritime industry to develop and maintain the highest standards. But ultimately it is your support that will make this happen.

I see a cooperative and collaborative approach between government agencies and industry as the key to progress.

Qualifications framework

I'd like to touch on a couple of specific issues facing the maritime sector.

Consultation on a proposed new Qualifications and Operational Limits (QOL) framework is fast approaching.

The proposal will be released for industry feedback on 27 September with a consultation pack available on Maritime New Zealand's website.

The month-long QOL Review roadshow will run from 4 October to 2 November, visiting 17 centres.

It is being promoted widely with ads and articles in industry publications and the roadshow schedule is also being made available to Maritime Safety Inspectors to distribute.

The design process has been very robust. In May and June, Maritime New Zealand worked with design advisors drawn from different industry sectors to come up with the new framework, which has been reviewed in stakeholder workshops representing all parts of the sector.

I'm aware that there is broad support for the changes, and that you are keen for Maritime New Zealand to progress these changes as soon as feasible.

I'm keen for that to happen too and with full consultation we can ensure the rules developed are robust and enduring.

Safe Ship Management

Maritime New Zealand is also working with the maritime industry on proposed changes to the Safe Ship Management System.

I met with MTA representatives recently to discuss your organisation's concerns with the Maritime Operator Safety System proposed by Maritime New Zealand.

As a result of that meeting, I'm fully aware that these are not easy times for the MTA's members, and that operating costs and compliance costs are ongoing concerns.

Written submissions closed on July 30, and Maritime New Zealand is still working through responses to the consultation process.

The main message I'd like to leave you with is that this is an honest and open consultation process. We are all committed to improved safety outcomes, and where possible reducing compliance costs for industry.

Adventure Tourism Review

On the topic of safety, last week the government released the findings of a report into the adventure tourism industry.

It was a very thorough review, and found that the majority of operators are safe and have an excellent understanding of safety culture.

Of course there is there is always room for improvement. The main recommendation from the report is to create a compulsory registration and safety auditing scheme for operators of these activities.

Maritime New Zealand was an active part of the review and will be working with the Department of Labour and other agencies to implement these findings.

Value for money

Finally, value for money in delivering government services on behalf of taxpayers or industry groups has been a major priority of this government.

Maritime New Zealand is undertaking a value for money review to ensure the services provided are efficient and effective. The review will help identify if current funding is appropriate for the services delivered, and ensure that tax payers and industry are getting value for money.

The MTA is represented on the sector reference group which has been set up to provide input from operators. I appreciate your engagement in this important process.

The findings of the value of the value for money review will be fed into a wider funding review of Maritime New Zealand.

I expect a report in October, and a discussion document about funding options for is due to is completed and released for consultation in November. I encourage your members to take part in this consultation process.

Oil spill

The ‘value' component means that Maritime New Zealand has the capacity to deliver on its mandate, including safety and protecting our marine environment.

In that regard, I can report that since May Maritime NZ has been sending staff to the United States to help deal with the Gulf of Mexico spill. This has been at no cost to the taxpayer and has been a great learning experience.

It's an opportunity for them to get their hands dirty - to use their skills and expertise to work alongside other experts in their field, and to bring that experience back to New Zealand.

I think this reflects very positively on our reputation overseas, and I understand the Australians are very jealous they weren't invited.

Conclusion

In closing I'm sure the next two days will provide plenty of food for thought as you hear the latest updates from the industry and meet with colleagues from around the country.

Finally, can I acknowledge the importance of forums such as this.

The Marine Transport Association make a valuable contribution towards improving safety in the sector and ensuring that members' views continue to be represented.

It's important that you can speak to officials and politicians like myself on behalf of your industry.

And while industry and regulators won't always see eye to eye, I urge all parties to continue to work in good faith and build relationships to help ensure the marine environment stays safe, secure and clean.

All the best for the rest of your conference.

ENDS

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