Industry NZ must be commercially driven says TIA

MEDIA RELEASE 21 June 2000

Industry NZ must be commercially rather than politically driven says tourism industry

The tourism industry believes Industry New Zealand (INZ) will contribute to regional economic growth, but it must be commercially rather than politi cally driven, the Tourism Industry Association (TIA) told the Commerce Select Committee in an oral submission today.

"The TIA supports policy proposals and objectives that improve economic growth, efficiency and equity and the environment in which businesses operate," TIA Chief Executive Glenys Coughlan said.

"Tourism is generally supportive of the establishment of INZ and the Ministry of Economic Development to the extent that we believe such institutions could provide mechanisms for central Government to work in partnership with industries like tourism, and local and regional authorities.

"However, Tourism's support for the Bill does hinge on the ability of INZ and the new Ministry to effectively develop programmes and efficiently manage and administer initiatives for industry and regional development.

"We particularly support the Government's focus on developing programmes for sustainable economic development and regional development, and have submitted to the committee that a competitive tourism industry could play a significant part in delivering these goals." ??./more T

The TIA submission warned that initiatives, such as those to be undertaken by INZ could be undermined by increasing business compliance costs at a microeconomic level - particularly the cumulative impact of Government legislation such as the Employment Relations Bill, ACC changes and taxation reform.

"For industries to grow, businesses must grow and that requires an environment that supports rather than stifles business," Ms Coughlan said.

TIA also recommended that INZ initiatives should be industry driven and to ensure this focus the Board of INZ contain a majority of members from the private sector. "It is essential that INZ is driven commercially rather than politically to ensure that it keeps its focus on job creation and regional development, and does not get mired down in paper writing and bureaucratic meetings," Ms Coughlan said.

ENDS

More information: Simon King 04 494 1845 025 807 252

The Tourism Industry Association represents 3,500 businesses and organisations within the tourism industry Members include airlines, airport companies, and regional tourism organisations, rental car, coach and taxi companies, inbound tour operators, travel agents, adventure tourism operators, accommodation providers, tourism attractions, researchers, training organisations and tourism services providers Tourism is New Zealand's largest export earner - accounting for 16 % of this country's export earnings The Tourism Industry Association organises the New Zealand Tourism Conference, TRENZ and the New Zealand Tourism Awards

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