Pacific Island countries contribute far more to the New Zealand economy than many people realise. In the past year ending June 2011 our trade surplus with the Pacific Islands was more than $1.3 billion!

We need to balance our Pacific trade by ensuring we are actively encouraging exports to New Zealand; working in partnership not just making handouts; not forcing our values on other cultures but working with them to harvest the resources that are available; helping in setting policies that ensure resources are farmed not stripped.

Multi-lateral trade is the aim of business groups that have been active in the Pacific Islands for many years and one of these groups, covering all the Pacific Island Countries is The New Zealand Pacific Business Council.

The New Zealand Pacific Business Council Inc. (NZPBC) was formed in early 2005 as a not-for-profit incorporated society. The Council is a multi-lateral, private enterprise driven membership organisation whose primary objective was to promote and facilitate “two-way” trade and investment between New Zealand and 26 Pacific countries and territories within Polynesia, Melanesia and Micronesia. Whilst our focus is still on ‘two-way’ trade we recognise the importance of supporting trade between island countries – hence our interest in ‘multi-lateral’ trade.

The NZPBC consists of over one hundred New Zealand companies interested in, or operating in the Pacific Islands. Members also include the Ministry of Foreign Affairs and New Zealand Trade and Enterprise.

Over the past six months the NZPBC has revved up its operation to ensure members have more opportunities to meet Pacific trade visitors, to network amongst each other, and participate in trade missions to the Pacific. Business After 5 functions are held each month, and three trade missions are planned per year (some in conjunction with other business councils) and the newsletter and web site have been stepped up.

Last month the Ministry of Foreign Affairs and Trade, in conjunction with the New Zealand Trade and Enterprise, (both organisations are represented on the NZPBC Executive Committee) invited members to their offices in Albert Street, Auckland CBD, to hear John Hayes, MP for Wairarapa, and Chairman of the NZ Government’s Foreign Affairs, Defence and Trade Select Committees, put forward his views on ‘Supporting Business Growth in the Pacific’.

John commented on the links between New Zealand and the Pacific Island countries through history, constitutional links, family and community ties and our geographical proximity. He also highlighted the need to make significant changes to trade, aid and economic development policies on both sides. “Foreign Minister Murray McCully recently said that this is the Asia-Pacific century. Our geography – so long our weakness- is now our strength as the global focus moves to the fast-growing Asian economies.”

John pointed out the challenges – the Pacific Paradox – “Crucially, despite the Pacific receiving the highest rate of international aid in the world, there has been a lack of economic growth.”

He says the current government has moved from the previous ‘poverty elimination’ with aid money spread over 800 programs in 100 countries to “increased economic development” particularly job creation. The focus is more on the Pacific with NZ aid lifting from one-third (2008) to over fifty percent today, and requiring measurable outcomes.

“Building sustainable economic development is not a task for governments alone. Politicians cannot legislate for prosperity and cannot regulate to create wealth. Sustainable economic development needs the input of the wider community. A crucial role is played by the entrepreneurs and traders, large and small, who ultimately drive economic enterprise and create jobs.”

John went on to comment on the previous aid allocation. “The (Aid) money which was spent in the Pacific produced papers and conferences, but no real outcomes or jobs. That was not good enough. Employment makes a difference – that is genuine employment in local economies, not in highly-staffed and well-paid international organisations.”

John said we should support the Pacific Island nations to ensure sustainability Ð to support them in moving away from simply receiving royalties on their exploited assets – fish, timber, minerals and tourism – to the community’s total involvement in extraction, processing, marketing and sales.

John commented on the potential for sustainable energy development – solar, wind and tide power; utilising the fertile soils, good rainfall and productive climates to reduce food imports and build to exporting food – particularly ‘organic’.