Thank you for inviting me here to open the New Zealand Hotel Industry Conference.

This is a really exciting time for tourism in New Zealand. The economy is growing again, more people are travelling, and next year we're hosting the Rugby World Cup.

There is simply no over-stating how important the World Cup will be for New Zealand. It's the third largest sporting event in the world, and our fantastic country will be in the spotlight for six weeks. We're expecting at least 85,000 international visitors, and billions more will be watching from home.

Things are certainly looking up.

It's a great time to think about how you can make the most of the opportunities coming your way.

Your industry has a big role to play in the future economic growth of this country.

I'd like to welcome new Tourism New Zealand Chief Executive Officer Kevin Bowler. Kevin has shown he is extremely optimistic for the tourism industry, and I'm looking forward to working with him.

Bouncing back from the recession  

Last year, businesses and families faced the worst global financial and economic crisis since the Great Depression. Uncertainty pervaded markets everywhere.

Internationally, it was the worst year for tourism in decades.

Businesses and households were travelling less, especially on long haul flights. This was made worse by swine flu, which led to a big reduction in travel out of major Asian markets.

Overall, the number of people travelling internationally was down four percent. Many destinations had sharp declines.

Those who were travelling were spending less. Spending by tourists was down 2.2 percent in the year to March.

It is a sign of New Zealand's attractiveness as a destination that we were the only country that didn't have an overall drop in visitor numbers.

That proves what we can do. It's testament to our world-class tourism industry, and the resilience of our tourism businesses.

Although we did have a drop in tourists coming from some long haul destinations, that was offset by an increase in Australian tourists.

We knew that in tough economic times, our Australian friends were more likely to holiday closer to home. 

So we took advantage of that, and in March last year gave Tourism New Zealand an extra $2.5 million for marketing in Australia.

The boost in Australian tourists made up for the drop in tourists coming here from other long-haul destinations such as the United States and Japan.

Those tourists are traditionally the high-spending ones, so this year we need to work particularly hard to attract them. I'll come back to my plan for that shortly.

I'm impressed at what the tourism industry achieved against the back drop of the economic recession.

I acknowledge it was a tough year for some of you. You may have had to make hard decisions about how to position your business.

But you can be proud of what you achieved. And it's great news for all New Zealanders that the sector is expected to bounce back quicker than originally forecast.

My vision for tourism

Last year at this conference, I spoke about my vision for tourism and how we can work together to achieve it.

To recap, I want us to make the very most of our competitive advantages, and to seize the many opportunities they provide.

That means we need to make New Zealand a higher-value tourist destination. We need to respond to the world as it changes. We need to improve the business environment. We need to work more closely with each other. And we need to make the most of the Rugby World Cup.

Today I want to talk about how tourism can help grow the economy, and help secure a brighter future for New Zealanders. 

Tourism growing our economy

Tourism is a huge part of our economy. It is one of our key export industries, making up about 10 per cent of our economy. One-in-ten Kiwis work in the tourism industry.

I believe tourism has the potential to grow far beyond what it is now.

We have many advantages. We have beautiful scenery, delicious food and wine, a unique culture, and a world-leading brand.

Our challenge is to make the most of these advantages, boost tourism earnings, and help grow our economy.

Next week Finance Minister Bill English will deliver a Budget squarely focused on building faster and more sustainable economic growth.

That's the only way we can create the jobs, higher incomes, and better living standards New Zealanders deserve.

I have no doubt that tourism will play an important role in helping us get the economy growing faster.

That's why I am delighted to announce today that this year's Budget will provide an additional $30 million for tourism marketing for the next year. 

Of this, $25 million will be used to market New Zealand as a tourist destination overseas, in key places such as Australia, China and the United States.

The other $5 million will be allocated to joint venture initiatives between regional tourism organisations and Tourism New Zealand. 

This follows an increase of $20 million in last year's budget. It will bring our total investment to just under $100 million this year.

The fact that we're boosting investment in tourism reflects my confidence in the industry to substantially increase the value of tourism to our economy.

Marketing New Zealand

I believe investing in marketing is vitally important. It will help Tourism New Zealand build on the great work it is already doing to promote New Zealand to those high-spending tourists that I mentioned before.

We need to work hard to attract tourists from places such as the United States, China, and Australia. These markets have huge potential.

In China for example, people are taking 54 million trips overseas every year. This is expected to increase to 100 million by the year 2020.

We know we need to focus on attracting high-value visitors who require a high-quality experience while in New Zealand. Now we have the funding to sell that message all over the world.

It is crucial that our marketing efforts are focused on the right markets, and that we target the right audiences. We need to get more bang for our marketing dollars.

Last year, I asked Tourism New Zealand to create a three-year strategy for marketing New Zealand. The new strategy fundamentally changes the emphasis of how Tourism New Zealand reaches markets and potential visitors.

We're relying less on traditional mass media, and more on new digital technologies like the internet.

This means we can reach a bigger audience with less money. It means we can engage with potential tourists to find out what they want. And it means we can target our marketing towards those higher-value visitors we want to attract.

Take the example of my appearance on the David Letterman show last year, reading out my top 10 reasons to visit New Zealand. There were almost four million people watching the show, but online coverage is estimated to have reached a further 75 million.

By using new technology, it's possible to reach far greater audiences.

Tourism New Zealand's recent launch of the 100% Pure New Zealand campaign into Beijing uses this new approach. It means we can reach a bigger audience in China than has been possible before.

At this stage, the additional $30 million in Budget 2010 is for one year. I want to make sure that the boost is delivering improved economic outcomes for New Zealand.

Alongside marketing efforts, the challenge for the industry is to remain price competitive.

Although we are aiming to attract visitors here for a high-quality experience, we are a long way from the rest of the world.

We need to think about the reasons tourists would and wouldn't choose New Zealand as a destination. And part of that means offering competitive prices for everything from accommodation and airfares to food and wine.

Improving the business environment

The Government is also working hard to create the right environment for you to do business in. We're committed to helping your business reach its potential, and to lifting the economic performance of this country.

Last week we saw a dramatic fall in the unemployment rate, from 7.1 per cent to 6 per cent. There is always some volatility in these numbers, but it shows that New Zealand has emerged from the recession in stronger shape than many other countries.

Now we need to focus on building faster and more sustainable economic growth. Our economic programme has six pillars. They are:

• A multi-billion dollar investment in infrastructure.
• Cutting red tape and regulation.
• Better business innovation and an ambitious trade agenda.
• Improving education and skills.
• Demanding better, smarter public services.
• And changes to the tax system to make it fairer, so that hard work and enterprise are rewarded.

Many of you run small and medium-sized businesses. Our progress in reducing red tape, reforming the Resource Management Act, and investing in infrastructure will make a difference to you. 

We are reviewing regulations such as the Building Act, the legislation governing the electricity sector, and the Overseas Investment Act.

We are reforming the Resource Management Act. This will reduce the costs, delays, and uncertainties.

To help businesses through the recession, we launched a Small Business Relief Package. This makes it easier and less expensive for small businesses to manage their cash flows and pay their taxes.

We're also boosting investment in infrastructure that will bring benefits to the tourism industry. That includes investing in state highways and broadband.

And of course the National Cycle Trail, which I'm pleased to report is progressing very well.

Work has begun on three of the trails, and we expect construction to begin on a fourth soon. Eventually we'll have trails around the country totalling 2000 kilometres. The Government is investing $50 million over three years for this project.

It's a great example of New Zealand making the most of our natural assets, and showcasing the very best our country has to offer as a tourist destination.

Attracting business visitors

We're also looking at the potential for an international-scale convention and exhibition centre that can cater for business visitors.

Attracting more business visitors to New Zealand has the potential to contribute significantly to our economy. When we host business events, we also get the benefits of sharing information, learning new things, and fostering business ties with other countries.

Many businesses around the world cut back on travel in response to the recession. Business arrivals to New Zealand fell by nine per cent last year, but as the global economy recovers, we can expect business travel to recover too.

That's why the Government is considering how we can host more international business events in New Zealand in the future. Especially in the fastest growing segment of the market - the 1500-plus delegate range.

Economic Development Minister Gerry Brownlee has recently held a series of meetings with venue owners and business event stakeholders in Christchurch, Auckland and Wellington.

They covered three main topics.

First, the possibility of developing an international-scale convention and exhibition centre. Second, the development of a National Business Events Strategy. And third, how the current network of convention venues in New Zealand can work together to attract a greater number of international business events to New Zealand.

The Minister will soon call for expressions of interest. We want your ideas on how the Government can partner with industry to attract more business visitors.

Rugby World Cup 2011

The next big opportunity for us is the Rugby World Cup 2011. And I don't just mean winning the tournament - although I am behind the All Blacks all the way!

One of my priorities for the Government at the moment is hosting a successful Rugby World Cup. This will be the most exciting and largest sporting event New Zealand has ever hosted.

It is our big chance to showcase New Zealand to the rest of the world, and we're expecting at least 85,000 visitors.

It will deliver huge benefits to our tourism and hospitality industries, and have a lasting impact on New Zealand's reputation. A Deloitte report estimates the World Cup will deliver a $1.25 billion boost to our economy.

Next year we'll be in celebration mode with festival events up and down the country.

You will have heard the recent announcement by Rugby World Cup Minister Murray McCully, about our plans for Queen's Wharf during the World Cup. We're going to use it for a fan zone, or party central as it's affectionately known.

Fans will want to congregate somewhere they can experience the spirit of the World Cup. We think Queen's Wharf will be a great place for that.

Our plan is to take the old sheds off Queen's Wharf, and put in place a mobile temporary facility that can host almost 8000 people. I believe it will be a focal point that many Aucklanders, New Zealanders and visitors will enjoy.

I'm delighted that communities all over New Zealand are getting in behind the Cup too.

A great example is Bluff. Bluff is going to have two oyster seasons next year. The first will be in March as usual. But they're going to save part of that catch, so the oysters continue to grow in preparation for their second oyster season - which will kick off in September for the World Cup.

Your role

As hoteliers, you will be a vital face for New Zealand during the Rugby World Cup. Ultimately the thing visitors will remember long after they have gone home is the hospitality and service they received during their stay.

The additional visitors that the Cup brings will provide an important boost during a tourism shoulder season.

As you know, there have been some concerns recently about accommodation pricing for the World Cup. News reports show some visitors are being asked to pay much higher rates during the World Cup than they usually would. 

Obviously hotels, motels, and travel wholesalers are going to make fair returns during the World Cup. Market forces will prevail to some extent. It's a great opportunity for the industry to make some money during what is a quiet tourism season.

But if we take it too far and overcharge visitors, we'll risk damaging New Zealand's tourism reputation. We need to balance the opportunity to make money on accommodation with how important our reputation is. 

We want to make sure visitors have a truly memorable experience. We want to make sure visitors get a taste of New Zealand and want to come back. You have an important role to play in ensuring their visit is an outstanding one.

This Government is determined to ensure that New Zealand makes the most of every opportunity that the World Cup presents. We want the positive impact of hosting the tournament to be felt long after the teams have gone home, and I'm confident we won't be disappointed.

The Shanghai Expo

Finally today, the Shanghai Expo, which opened this month, provides another great opportunity to showcase New Zealand to the world. I'm really looking forward to visiting in July.

There are almost 200 countries vying for the attention of the 70 million visitors expected during the six-month-long Expo. I'm probably biased, but I'm sure New Zealand's will be the best!

The Government has invested $30 million, with the aim of making New Zealand's pavilion a must see.

Visit the New Zealand pavilion and you'll see a man-made pohutukawa tree in flower, a giant block of New Zealand pounamu, ancient Chinese and New Zealand greenstone artefacts, and kapa haka group performances.

Carvers from Te Puia are crafting a 10-metre high waharoa, or carved entranceway, at the front of the New Zealand pavilion.

The waharoa is symbolic of the opening of doorways between our countries through which relationships can grow.

We're going to choose a suitable permanent home in Shanghai for the waharoa and this will be announced when I'm there in July. I hope it will provide a legacy long after the Expo has finished. 

Conclusion

Ladies and gentlemen, the National-led Government is strongly committed to tourism. We are determined to grow the industry for the benefit of all New Zealanders.

The extra funding I announced today will help ensure that is possible. It has been a tough few years, but now is the time to ensure you are positioned to take advantage of a recovering economy.

I'm really impressed by the talent, the enthusiasm, and the huge potential I see in the sector. I'm confident that we can work together to secure a brighter future for tourism in New Zealand.

Thank you for your hard work. I wish you all the best for a successful conference. 

Thank you all for coming.

I want to do two things this morning.

First, I am going to announce the research and science component of next week's Budget.

Announcing this separately from other Budget measures shows how important research and science are to this Government.

They are key elements of the Government's economic agenda, both this year and into the future.

Second, I want to release the Government's direction for science and innovation, called Igniting Potential.

Before I do any of these things, however, I want to put this Budget announcement into an economic context - where we have been, where we are going, and where science fits into all that.

The economic context

‘Where we have been' is pretty straightforward to describe.

In the last two years we have been in recession, amplified by the effects of the global economic and financial crisis.

Our first year in office was therefore focused on getting New Zealand through the crisis in as good a shape as possible.

That was not an easy task.

In order to sustain economic activity, keep up public services and support jobs, the Government significantly increased its borrowing, absorbing much of the shock of the recession on its own balance sheet.

At the same time we fulfilled election commitments and kept control of the country's finances, in particular maintaining our international credit rating.

The worst of the global crisis has now passed.

And as the clouds part, it is clear that New Zealand has weathered the economic storm better than many other developed economies.

The economy has begun to grow again, although tentatively. Last week's Household Labour Force Survey showed that unemployment is dropping, which is great news.

So the Government's attention, in terms of the economy, has now turned to two key objectives:

• lifting the long-term performance of the New Zealand economy, and
• maintaining firm control of the government's finances.

Maintaining firm control of the government's finances means bringing the budget back into surplus over the next few years, and returning public debt to a prudent and manageable level.

At the moment we are borrowing $240 million a week and that cannot continue indefinitely.

Crucially, we have to keep a tight rein on spending increases, well out into the future.

New operating spending allowances have been limited to $1.1 billion a year increasing at 2 per cent each year from 2011/12.

This new spending will be directed only to a few areas of highest priority. Most government agencies will see no additional funding in the foreseeable future.

Science as a Government priority

That is why it is highly significant that behind Health and Education, Science will get the biggest increase in operating spending in the 2010 Budget.

In what will be a very responsible Budget, we have continued to prioritise funding for research and science.

That is because science fits into the first of our objectives - lifting the long-term performance of the New Zealand economy.

Knowledge drives prosperity. That has long been established. And the Government has a crucial role in ensuring that knowledge is developed and used to improve the living standards of all New Zealanders.

Sir Peter Gluckman, who has vast experience of science systems around the world, tells me we are lagging behind other countries.

As a small country, recovering from recession, we do not have lots of new money to spend. But we can make research and science a priority for new Budget spending and we can certainly improve the way we do things.

The Government wants to establish a high-performing public science system which supports economic growth, and a wider innovation system that encourages firms to increase their investment in, and application of, research.

Achieving that won't happen overnight. It takes an ongoing programme of policy, institutional and funding initiatives over a number of years to effect real and enduring change.

That is what we began when we first came into Government, and I want to acknowledge Dr Mapp's leadership in this area.

In last year's Budget we focused on boosting the public science system, including more secure funding for CRIs through the Capability Fund, as well as increased funding for the Health Research Council and the Marsden Fund.

We established the Primary Growth Partnership to invest, alongside industry, in research and innovation to boost New Zealand's primary, forestry and food sectors.

We are funding a network of open-access food development and commercialisation facilities across New Zealand

We are also investing significantly in the Domestic Centre for Agricultural Greenhouse Gas Research, and in the Global Research Alliance, to drive much-needed research on agricultural greenhouse gas emissions.

We have begun to make significant changes in the CRI sector, working from the recommendations of the CRI Taskforce. In particular, we are going to be much clearer about the role and purpose of each CRI, fund them on a more strategic and longer-term basis, and improve the way we monitor their performance.

To support these and other changes, the Government is combining its science agencies, MoRST and FRST, to give science a strong voice and to simplify and better coordinate science administration.

My own objective has also been to lift the profile of science in New Zealand.

On becoming Prime Minister I appointed Sir Peter Gluckman as Chief Science Advisor, reporting to me personally.

I also launched the Prime Minister's Prizes for Science, with total prize money of $1 million, because I think our world-class scientists deserve their share of public acknowledgement and acclaim. I was delighted to award the first round of these prizes in March this year to some outstanding scientists.

Budget 2010 takes this programme a step further by shifting the focus onto business R&D. Our goal is for firms to be making better use of R&D to take greater advantage of market opportunities.

New Zealand has very high-quality research institutions - both public and private - which are carrying out cutting-edge science. But we have some way to go when it comes to turning scientific knowledge and insights into business growth.

For a long time, New Zealand firms have undertaken a relatively low level of R&D compared to firms in other developed countries. That is in part due to our industry structure - we don't have a large defence or pharmaceutical industry, for example - but it really is only in part.

New Zealand is also wanting when it comes to taking up and applying research for commercial ends. That includes both research that is being done in New Zealand and research that comes from overseas.

So the main part of the Budget package is a boost in support for business R&D.

In total, the Budget allocates $321 million for new initiatives within RS&T over the next four years.

Of that, $225 million is new funding and $96 million has been reallocated from across other parts of the Vote.

As I said before, this level of new funding means that RS&T gets the third-biggest increase in funding in the Budget, behind only Health and Education.

Technology development grants

This increase in funding has allowed us to significantly expand and refine the way we support business R&D. We are re-engineering the support which exists at the moment and introducing new measures where there are gaps.

The biggest of the new measures is an investment of $189.5 million over four years to create a brand new type of R&D grant.

These grants will be targeted at medium to large, research-intensive firms, which can show that their activities result in wider benefits to New Zealand.

These will almost certainly include, but are not limited to, firms that undertake high-value manufacturing.

The Government will contribute 20 per cent of the firms' expected R&D spend for a period of three years, up to a set maximum.

In turn, the firms can determine exactly what R&D activities this money is spent on. These firms are, after all, "R&D savvy" so know better than anyone where this funding would be best spent.

Funding through technology development grants will give firms the confidence to invest in longer-term R&D programmes, increasing the amount of research they do. Firms which already have R&D experience will have a real incentive to do better.

We are retaining the existing TechNZ grants, which provide for 50% funding of a particular project. These work well for many firms and we are keen to continue with them, albeit with a sharper focus.

However the new technology development grants are something entirely different.

They are not project based, which cuts down on bureaucracy and lets research-intensive firms determine the best use of the funding. Neither are they delivered through the tax system. That means we avoid the sorts of inventive accounting and lack of cost control that plague tax-based measures like R&D tax credits.

I think the new grants are a real step forward.

Technology vouchers

Another brand new tool we are introducing is a technology transfer voucher.

We are putting $20 million over four years into these vouchers.

They will be targeted at firms which don't have much of an in-house R&D capability but would really benefit from working with a public research organisation like a university or CRI.

Firms will able to apply for a voucher - typically worth around $100,000 to $200,000 - which they can then use to get a project completed with a research organisation.

Having these vouchers will obviously result in more R&D being done, to the benefit of New Zealand firms.

But they will also have wider benefits, in terms of improving links between business and the science system.

In particular, they provide an incentive for research organisations to collaborate with firms and to be responsive to what firms want and need. And they have the potential to demonstrate to all firms, including those who don't have vouchers, the benefits of working with public research organisations to improve their businesses and develop new ideas.

Technology transfer

Another $24.7 million has been set aside in the Budget for initiatives to help capture the commercial value of research done in public research organisations.

There is scope in New Zealand to improve the way new technologies are transferred from research organisations - which generate new scientific knowledge - to businesses which can use this knowledge to produce and sell products.

In addition, we can improve the way research organisations themselves commercialise the new knowledge they create.

In any case, it is important that we get better in New Zealand at diffusing the knowledge generated by the public science system.

To that end, the Government will be investing $11 million over 4 years to establish a national network of commercialisation centres.

This network will bring together existing expertise from the commercialisation units already attached to public research organisations.

We don't want to duplicate what currently exists in this area but we do want to see commercialisation units working together, sharing their expertise, and developing critical mass, for the benefit of New Zealand as a whole.

This initiative is in the early stages of development but we have secured money for it in the Budget, and intend to put out a Request for Proposal to operate the new network later this year.

A number of other technology transfer initiatives are being considered as well, including funding to assist actual commercialisation projects. Again, we have secured money in the Budget to cover these initiatives but full proposals are still being worked up.

Science capability

Ladies and Gentlemen, Budget 2010 has a strong focus on improving business R&D performance.

But the Budget also recognises the importance of New Zealand's science capability, particularly when it comes to talented people and research infrastructure.

The Budget will contain a new fellowship programme for emerging talent.

A total of $25 million over four years will be invested in the Rutherford Discovery Fellowship Programme, which will target our most talented post-doctoral researchers in their early-to-mid careers. These prestigious grants will be worth up to $200,000 per year for up to five years.

In addition, the Budget includes $9 million over three years for a programme to attract top-flight entrepreneurial scientists to New Zealand.

This programme, which will start in 2011, will attract high-calibre researchers with experience or expertise as entrepreneurs to improve the value we get from our public research organisations.

Research infrastructure is another crucial element of our science and innovation system.

New Zealand needs infrastructure of an international standard if we are to attract and retain talented people and enable them to undertake world-class research.

The Budget sets aside $44 million over four years as part of a plan to expand our research infrastructure.

Some large items, such as high performance supercomputing or contributions to big science projects like the Square Kilometre Array, are too big for one institution to develop on their own.

The Government intends to take a national approach to investing in key infrastructure and that will include the funding set aside in the Budget.

Igniting Potential

As I said at the beginning of this speech I am also taking this opportunity to release a document called Igniting Potential: New Zealand's Science and Innovation Pathway.

This has been Dr Mapp's initiative, and it is a document that clearly explains the direction we are taking with research, science and innovation.

It emphasises that these are, and will remain, areas of significant focus for the Government.

The past 18 months have been a period of significant change in the science sector and the document reflects on where we are and where we are heading.

It captures and summarises the changes taking place in the science system, like setting clearer priorities for science, reshaping CRIs and today's announcements of business R&D incentives.

But this booklet is by no means the end of the story.

The document is deliberately called a "pathway" because this is a long-term programme of change.

You'll see in Igniting Potential that there are further improvements to come, for example in the areas of building science infrastructure, attracting talented people, and building international partnerships.

We will continue to build our science and innovation system in the years ahead.  We will back the programmes that work well, and ensure that resources are directed to where they will get the best results.

Please take a copy of the document home with you.

Thank you.

Ladies and Gentlemen, my fellow National Party members, it’s great to see you!

I’m delighted to be here as your Prime Minister.

Our hard-working National-led Government is now halfway through its first term.

We’re relentlessly focused on what matters to New Zealanders.

They voted for a brighter future.

And we’re making the decisions that will secure that brighter future.

I want to start by thanking some special people today who underpin what we do.

The first of them is our President, Peter Goodfellow.

Peter, thank you for what you have done in your first year as President of the National Party.

As we get ever closer to election year, Peter has focused on ensuring that the party will be ready financially and organisationally for the challenge that lies ahead.

I also want to acknowledge the Lower North Island Ministers both in and outside the Cabinet.

Simon Power.

Our very capable Minister of Justice, Commerce, State-Owned Enterprises and Associate Finance. What a workload. And he’s also guiding the reform of electoral laws in a much more inclusive way than our predecessors did!

Chris Finlayson.

An outstanding Attorney-General and Treaty Negotiations Minister, whose sound judgment and clear thinking is a huge asset to our government.

Nathan Guy.

A hard-working up and coming Minister who has a lot to offer, and he’s making a real difference for the people of Otaki.

Let me also mention the wonderful Members of Parliament who hail from the Lower North Island and do such a good job of representing you and your fellow New Zealanders.

Chris Tremain.

Our highly effective senior Government whip, doing a great job for the people of Napier, and making sure that Hawkes Bay remains a lovely shade of blue.

Chester Borrows.

Working hard for the people of Whanganui, always putting their point of view forward and doing great work as Chair of the Justice and Electoral Select Committee.

Craig Foss.

Our other boy from the Bay, chair of the Finance and Expenditure Committee and doing us proud in Tukituki.

John Hayes.

Representing Wairarapa with passion, and putting his background to good use as chair of the Foreign Affairs, Defence and Trade select committee.

Hekia Parata.

Firmly establishing herself out in Mana and doing great work for our Party.

Paul Quinn.

Tackling his role as an MP for the National Party with all the gusto he displayed on the rugby field.

Katrina Shanks.

National’s woman in Ohariu, chair of the Social Services select committee and a great representative for the Party.

The Lower North Island is well served by this talented group of National Party MPs.

They’re doing a fantastic job. But of course they wouldn’t be there without the support of the Party organisation that is working so hard for them.

So thank you to Regional Chair Malcolm Plimmer, thank you to the Board Members, the Electorate Chairs, the volunteers, the activists, the members.

You make this party strong, and your persistence and loyalty are essential ingredients in National’s success.

National Party members, when I stood before you a year ago, Bill English was preparing to deliver his first Budget for this government.

While it seems a long time ago now, let’s not forget that the backdrop was the worst global financial and economic crisis since the Great Depression.

Countries were falling deeply into recession and uncertainty pervaded markets everywhere.

We had to make tough choices in that Budget.

And I’m pleased to say that we didn’t shy away from making them.

We protected New Zealanders from the sharp edges of recession by safeguarding their entitlements – as we said we would do.

We poured billions of dollars into infrastructure to unclog the arteries of growth – as we said we would do.

We pushed resources to the frontline right across the public service – as we said we would do.

We took measures to keep the country’s debt under control – as we said we would do.

The 2009 Budget was responsible and credible. It was a Budget for the times.

It averted a costly credit rating downgrade that would have hurt all New Zealanders, through their mortgage interest rates or business loans.

Fellow National Party members, New Zealand required strong economic leadership and we delivered it.

One year on, the good news is that our country has weathered the worst of the global crisis.

A sign of that is the dramatic fall in the unemployment rate that you saw this week, from 7.1 per cent to 6 per cent.

There is always some volatility in these numbers so I’m treating them with cautious optimism.

What’s clear is that New Zealand has emerged from this recession more quickly and in stronger shape than most of our trading partners.

But the need for strong economic leadership is no less than it was a year ago.

In a few moments I want to talk a little about the challenge ahead; about why New Zealand needs strong economic leadership if it is to take advantage of the opportunities ahead.

But first, let’s reflect on the year since the last regional conference.

It has been quite a year for our talented team.

We’ve introduced National Standards in our schools.

We’ve put children and their parents first, and told teachers we want them to report in plain English about how a child is doing.

Because it’s important that children who are slipping behind are identified, so that teachers and parents can help them before it’s too late.

We’ve put more police on the streets and given them better tools to go after criminals.

We’ve significantly strengthened laws to crack down on gangs.

We’ve declared war on P.

I’m delighted to say that our multi-pronged attack on methamphetamine is already yielding great results.

At the border, Customs is on track to smash last year's record amount of precursors intercepted, strangling the supply to those who would peddle P in our communities.

We’re providing more treatment beds to get people off P. And those who have profited from the drug are finding that their assets are being taken away from them in increasing amounts, thanks to our strengthened recovery laws.

We’re toughening sentencing laws, with a three-strikes policy now before the House that will ensure the worst repeat criminals receive the maximum allowable sentence.

Because I believe New Zealanders deserve to know that the country’s most dangerous repeat violent offenders are not walking alongside them in their community.

In health, we’ve delivered an unprecedented increase in elective surgery operations for people on waiting lists.

A total of 135,444 patients had elective surgery in 2009 – that’s nearly 13,000 more than the year before, and the largest increase ever recorded.

And that’s just in our first year!

We’ve introduced legislation to reform the benefit system, to help break the cycle of welfare dependency and get people back to work.

We’ve moved resources to the frontline all over the public service and halted the rampant growth that was seen under the previous Government.

We’ve been kicking off major new roading projects all over New Zealand to get the country moving.

We are now well underway in making the biggest investment in New Zealand’s roading network that has ever been made.

And you are set to reap the benefits right here in your patch.

The National-led Government is absolutely committed to developing the Wellington to Levin corridor, including Transmission Gully.

Even closer to home, just south of here work is underway on Muldoon's Corner - a project that will greatly improve safety on the Rimutaka Hill Road.

This is a project we were able to advance by more than two years as part of the $500 million Jobs and Growth plan early last year.

We’ve helped get our younger generation through the economic downturn with job programmes like Job Opps and Community Max to give them a start at working life.

We’ve unveiled significant new changes to the way the finance sector is regulated.. Because while we know there will always be an element of risk in investing, we don’t think it’s acceptable for people to simply get ripped off.

The improvements we’re making will make it harder for that to happen.

We’ve taken a knife to red tape, we’re making progress on our plan to deliver ultra-fast broadband across the country, and we’re moving forward on our Youth Guarantee and Trades and In Schools policies.

Fellow National Party members, this has all been done while still keeping a tight rein on government spending.

Because we are committed to restraining government spending and making the most of what we have.

We have done what we were elected to do and we have kept our promises.

New Zealanders put their trust in us and we are delivering.

None of this would have been possible without our partners ACT, the Maori Party and United Future.

It’s important that I acknowledge their ongoing collaboration and support.

Ours is a stable and balanced government.

From time to time we will have disagreements. That’s healthy and it’s normal. After all, we’re not the same party.

But the reason these relationships work is because they are based on trust, respect, and a willingness to find solutions together.

Rather than worrying about what we don’t agree on, we are focused on what we can do together.

We have sought common ground and we have found it.

ACT leader Rodney Hide and his deputy Heather Roy bring a lot to government.

We agree on many things. For instance, we agree that Government doesn’t have the solution to all the country’s problems.

That we want to see value for every taxpayer dollar that we spend.

That we need to reduce the red tape and regulatory burden our small businesses face.

And that the worst criminals in our country should be dealt with firmly.

United Future’s Peter Dunne is also bringing his experience and outstanding knowledge to the table.

Peter has played a crucial role in the work that has gone on to reform the tax system, which you will see in the Budget in just over a week’s time.

And we are working together on the War against P.

I’m pleased to have him on board.

The Maori Party, too, is making a big contribution.

As you know, I reached out to the Maori Party after the election and did a deal with Tariana Turia and Pita Sharples when we already had the numbers to form a Government.

I did it because I believe it is in the long-term best interests of New Zealand.

I want us to stop looking in the rear-view mirror at grievances past, and to instead shift our eyes to the challenges of our shared future as New Zealanders.

I am optimistic that the next phase can be characterised by better race relations and an even more strongly united sense of our shared aspirations for New Zealanders.

Maori youth are going to be a big part of our future workforce.

We need them to succeed.

The fact is that the Labour Party, while claiming itself as the natural party of choice for Maori, left a legacy of poor policies that didn’t solve anything.

Having issues like the Foreshore and Seabed Act hanging over our heads is simply not constructive.

I want to lead us down a path where these issues are settled, and we can all look to move forward together.

Some of what we do in this area will, I understand, challenge you and other New Zealanders.

And there will always be extremists in the debate who falsely characterise things in a way that may even frighten you.

Let me be clear: there is no room for separatism in New Zealand.

What there is room for, however, are solutions that help us to lift Maori achievement and aspiration, because that benefits all New Zealanders.

Sometimes there will be a uniquely New Zealand answer to a problem – like you’ve seen in recent days with Whanau Ora.

Whanau Ora is all about families taking responsibility for themselves. It’s about them having aspirations and ambitions, and getting ahead under their own steam. It’s about personal responsibility.

That’s where Whanau Ora is in line with National Party values.

And it’s a policy that is focused on results – the kind of results that it is in all of our best interests to see.

Our relationship with the Maori Party gives us the unique opportunity to erase the rearward-looking grievance mentality that has at times been a feature of Maori and Pakeha relations. And to move towards a unified, aspirational, and forward-looking perspective.

That is a prize too important to surrender, and we should grasp it for the long term benefit and harmony of New Zealand.

In this regard, I’m delighted to have Tariana and Pita making the contribution they do to this government.

The relationships we have with these three parties mean the National Party can look forward to providing stable government well into the future. Not just this term, but with the continuing support of the voters beyond that.

Fellow National Party members, New Zealanders chose a brighter future when they voted for our Party in their hundreds of thousands at the 2008 General Election.

And since we became Government we’ve been working hard every day to secure that brighter future.

We’re now in the phase of making the decisions that will get us there.

You’ll see some of them in the Budget on the 20th.

Even though the economy has started to grow again, we still have to make tough calls.

The Labour Party is already saying we should go back to the days of borrow and spend, and ramping up our foreign debt.

It would be easy to take the road of little resistance and shy away from making the hard calls.

But what we really need is economic leadership.

Only a strong economy can provide financial security for our families, well paid jobs for our young people, and larger superannuation payments for our older people.

We are going to take strong and decisive action to strengthen the New Zealand economy.

We have a lot of things going for us as a country.

We are rich in natural resources, we are one of the best food producers in the world, we have a beautiful landscape, and we are home to some of the smartest and hardest-working people in the world.

But we have not been making the most of our strengths.

Under Labour, New Zealand’s economy was already in recession well before the global crisis struck.

Our export sector was in poor shape, and the incomes of hard-working Kiwis were falling further and further behind other countries like Australia.

The National-led Government is determined to change that.

We are focusing on jobs and growth through the six pillars of our economic programme.

They are:

A multi-billion dollar investment in infrastructure.

Cutting red tape and regulation.

Better business innovation and an ambitious trade agenda.

Improving education and skills.

Demanding better, smarter public services.

And changes to the tax system to make it fairer, so that hard work and enterprise are rewarded.

We are focused on a number of sectors as we look for faster growth.

One of them is science and innovation.

We know that New Zealand companies have time and again proven themselves to be world-beaters.

The challenge for us is to get more of our firms using science, research and technology to deliver more valuable products and services.

Because that will translate through to better-paid jobs for New Zealanders.

You can expect to see science at the heart of what we do in the Budget a few days from now. We have made this area a priority for new spending.

I have also tasked all of our Ministers with finding and fixing the blockages that are holding up growth in their particular portfolios.

One of the areas we’ve already moved on is aquaculture.

Cabinet has agreed to a range of changes that will free up the regulatory bottlenecks that have kept aquaculture planning in limbo.

No new aquaculture space has been created under 2004 reform law and that simply isn’t good enough.

We support the industry’s goal of generating annual sales of $1 billion by 2025, and that’s why we’re removing roadblocks that are getting in the way.

As you know we’re also looking at the potential for responsible mining to create jobs and contribute to New Zealand’s growth.

Since we proposed opening up a very small part of Schedule 4 land in the DOC estate for mining there has been an emotional debate.

I can understand that.

We are listening to the thoughts of all people and I think it’s fair to say there is a real mixture of views.

Proposals like this one are never easy – but neither is the alternative.

If we want a faster growing economy and better paid jobs for Kiwi families, we have to do something to make it happen.

That’s why we’ve been looking at responsible mining for jobs.

We’ll examine the submissions that come in on the mining proposal and take a fair and balanced approach to the issue.

Another area where the government is addressing major hold-ups is water storage and irrigation in Canterbury.

We want a situation where water storage and irrigation projects which meet environmental standards, and which are good economic propositions, can happen in a decent time frame.

The National-led Government is serious about creating ongoing jobs for New Zealanders and that’s why we’re looking at all these opportunities.

We’re also providing the largest number of tertiary education places New Zealand has ever seen to upskill our workforce.

Fellow National Party members, these are just some of the issues we’re addressing to get New Zealand on the path to faster growth.

Also fundamental to our approach is a disciplined fiscal policy.

Unlike the Labour Party, we are not willing to saddle future generations with a mountain of debt.

I hope you’ve seen the irresponsible comments from our political opponents over the past fortnight.

They think we don’t have a debt problem.

Remarkable isn’t it – we’re borrowing $240 million a week, and Labour says we don’t have a debt problem.

Make no mistake – Labour wants to raise taxes and borrow more, saddling future generations with a mountain of debt.

Their old-fashioned tax and spend recipe is simply not what hard-working Kiwi families deserve.

Look at Greece right now. It has a high level of debt and is in all sorts of difficulty.

When we became the Government the Treasury showed us their projections of the fiscal position. They showed Government deficits persisting forever, and government debt rising uncontrollably.

That was Labour’s parting gift.

We have turned that situation around and we’ve got debt back under control.

This year’s Budget will be about continuing to strengthen our fiscal position so we can secure the future that New Zealanders want and deserve.

I’d like to take this opportunity to acknowledge my friend and Deputy Prime Minister Bill English.

What a great job he is doing as Finance Minister.

In the Budget you will see another $1.8 billion of lower quality government spending redirected into high priority areas.

Last year the government found $2 billion to reprioritise.

That means we’ve weeded out nearly $4 billion of lower quality government spending in just our first two Budgets.

It’s a significant sum of money that has been freed up to go into better healthcare services, improving education, and keeping New Zealanders safe.

Redirecting spending isn’t always easy, and our political opponents invariably complain.

But I make no apology for reprioritising lower quality government spending.

It’s what we were elected to do, and Bill English is driving that.

New Zealanders deserve to have their hard-earned money spent responsibly.

This Budget will reinforce the National-led Government’s credentials as a responsible manager of personal and business taxes, with a growth plan and a tax system that better rewards hard work and enterprise.

And we will also produce a set of government accounts that make much better reading than those we inherited from the Labour Party.

Remember that not long after we took government, forecasts showed that left unchecked, net debt would soar to just over 50 per cent of GDP by 2023. And it would keep on rising forever.

That’s the legacy that Labour left behind for New Zealanders.

In last year’s Budget we managed to pull that figure back to peak at 35.9 per cent, and while I can’t tell you exactly what the figure will be in this month’s Budget, I can say that there will be further improvement.

That improvement is only being forecast because we are taking a disciplined approach now, and because we plan to do so well into the future.

National Party members, we are on the path toward the brighter future New Zealanders resoundingly chose 18 months ago.

A future where we celebrate achievement.

Where we reward effort.

Where the economy is strong and our communities are safe.

Where education standards are high.

Where our young people choose to live in this country because it offers all the opportunities they need and want.

My fellow party members, National is the right party to be leading New Zealand toward a brighter future.

That you can be sure of.

Thank you.

It's great to be here in Washington.

And it is a pleasure to be with so many good friends of New Zealand.

I want to acknowledge the strong support the US/NZ Council and its counterpart back home give to the relationship between our two countries.

Your positive approach is welcome. Your tireless advocacy on the trade front is something I thank you for.

As you know I am in Washington at the invitation of President Obama to attend the Nuclear Security Summit.

Along with about 40 heads of government, we have been talking about working together - to improve the security of the world's nuclear material and to prevent nuclear smuggling and terrorism.

New Zealand is nuclear-free. That means we are able to bring a unique and valuable voice to the table.

The Nuclear Security Summit is part of a vision laid out by President Obama to work towards a world free of nuclear weapons.

It is a vision New Zealand shares. Because nuclear issues are global issues.

It is obvious that we would all be affected if an act of nuclear terrorism was to take place.

Through security, commerce, travel or transport, New Zealand would feel the impact.

That is why we are working alongside the United States and others to do what we can to prevent nuclear terrorism from ever occurring.

New Zealand has a long record of promoting nuclear disarmament and non-proliferation. New Zealanders feel strongly about the issue.

We have joined the Proliferation Security Initiative, the Global Initiative to Combat Nuclear Terrorism, and the G8 Global Partnership to secure nuclear materials in the former Soviet Union.

While I have been in Washington I have announced a further financial contribution in support of the United States' Nuclear Smuggling Outreach Initiative.

I am pleased that we are seeing progress from the fresh impetus given to this important cause by President Obama.

A new Strategic Arms Reduction Treaty was signed only days ago between the United States and Russia.

It dramatically cuts the number of nuclear weapons held by the two countries.

And New Zealand also warmly welcomes the results of the United States' own Nuclear Posture Review.

The review clearly states the long-term objective of United States policy is the complete elimination of nuclear weapons. It also implements the first of the actions that will be needed to get there.

New Zealand welcomes this momentum and it is good to be in Washington, working with the United States on an issue of such global importance.

Of course, there are many other areas where New Zealand is working in partnership with the United States.

Our relationship continues to go from strength to strength.

In Afghanistan, New Zealand's SAS and Provincial Reconstruction Team are working alongside their American and international counterparts.

Their contribution to build a more stable and secure Afghanistan is significant and it is valued.

I am delighted, too, that a strong US contingent travelled to New Zealand last week to attend the inaugural meeting of the Global Research Alliance.

This Alliance was launched on the sidelines of difficult and complex climate change negotiations in Copenhagen.

It is a partnership of countries which will together search for ways to reduce the intensity of greenhouse gas emissions from agriculture.

The United States was an early and particularly strong supporter of the Alliance.

I am grateful to Secretary Vilsack for lending his personal support and energy.

New Zealand and the United States also work closely together in the South Pacific, promoting good governance.

In Antarctica, we have shared more than 50 years of close cooperation.

But I don't think I need to point out to this audience the full breadth and depth of the relationship between New Zealand and the United States.

Even in the most difficult of times, in my view, the relationship maintained a solid foundation.

That is because we are natural partners with shared values.

We share a commitment to democracy.

We share a commitment to the rule of law.

We share a commitment to good governance and respect for human rights.

And we are prepared to defend these values - together.

Our like-minded approach makes me ambitious for the relationship between our two countries.

And my government is strongly committed to taking this relationship to yet another level.

The current focus of our energies and ambitions is the crafting of a unique, modern, 21st century free trade agreement spanning the Asia Pacific region.

I am delighted that our American colleagues have also seized this vision.

Negotiations for an eight-member Trans-Pacific Partnership free trade agreement began in Melbourne last month.

These negotiations will be testing.

But we must not lose sight of the objective.

That objective is to increase our trade and economic engagement, so that Americans and New Zealanders are able to improve their standard of living through new and higher-paid jobs.

Those of us in the Asia Pacific region are very aware of the dynamism and future prospects of the region.

We know it is where New Zealand must be.

And there is absolutely no doubt in my mind that it is where the United States must also be.

The region is changing fast.

So are the trade flows and the ways that our companies are doing business.

We all know that Asia's economic growth over the past 50 years has been phenomenal.

And it is projected to continue this strong upward trajectory over the next few decades.

Asia will be a strong engine of growth for the global economy.

If we are to build new and better jobs for New Zealand and American families, we need to be actively engaged in the area.

New Zealand has been particularly active on this front.

In the late 1990s, my current Trade Minister Tim Groser was a New Zealand trade negotiator.

He was part of a team of officials who saw the need to build a trade agreement linking New Zealand to the dynamic regions of Asia and the Pacific Rim.

We took our first step towards this goal through negotiating an FTA with Singapore, which we concluded in 2001.

Since then, we have concluded a number of agreements.

We now have FTAs with Thailand, Malaysia and China. Just last week, we signed an FTA with Hong Kong.

With our good friends the Australians, we concluded a regional FTA with the 10 countries of ASEAN.

We are currently negotiating with Korea. We expect to launch negotiations with India soon.

My government sees this work on trade agreements as a central pillar in our economic agenda.

The results speak for themselves.

The high-quality FTA New Zealand concluded with China has brought about a surge in trade between the two countries.

Only a few days ago official statistics showed China overtaking the United States as our second-largest trading partner.

New Zealand has already captured more than a billion extra dollars of export revenue following the China trade deal. And there is the potential for much, much more.

In 2005 we concluded the high quality, regional FTA, which is commonly referred to as P4.

This agreement with Chile, Singapore and Brunei is now the basis for negotiations toward an expanded Trans-Pacific Partnership.

I was delighted to hear President Obama confirm the United States' intention to engage with TPP last November.

A month later, US Trade Representative Ron Kirk gave formal notification to the Congress of the Administration's intention to formally join the TPP negotiations.

I know that the prospect of joining the TPP will challenge some representatives here in the United States.

I can understand it.

But I also strongly believe that the United States would get solid benefits from being part of the TPP.

Being part of the TPP could turn the tide for the United States' share of exports to Asia, which has been declining over recent years.

As I said before, we have also seen this weakening trend in New Zealand.

Although exports from the United States to New Zealand have grown on average by two percent each year since 1990, the United States' share of New Zealand imports has fallen from 18 percent to 11 percent over the same period.

This trend is mirrored for United States exports across the region.

A large part of the trend has been driven by the development of preferential trade agreements across Asia. The United States has largely not been a part of that growing network.

I know that New Zealand and United States exporters share the same frustrations with the failure of trade policy and regulations to keep up with the evolution of business practices.

TPP is our chance to change this.

We need policies and regulations which help make transactions happen - not hinders them.

At the heart of this trade push are living standards and jobs.

Both of our countries experienced a rise in unemployment as the global economic crisis took its toll on businesses.

In my view, trade must form a crucial part of the global economic recovery.

We must not lose sight of the potential for higher-paid jobs to be created from increased exports into the Asia-Pacific region.

New Zealand and our TPP partners feel a strong sense of urgency to seize the momentum this negotiation now has.

We want to make sure our negotiators deliver this deal in a timeframe that will deliver for business.

We want to bring forward the agreement's economic benefits for families.

I would like to acknowledge, here, the support within the United States for TPP.

I know there are people in this city and further away who are backing this agreement, and I thank them for that.

You, the Council, have also been lobbying hard and effectively.

Back at home, the government's eyes are squarely on the economy as we continue to implement our economic policies.

We came into office inheriting an economy deep in recession and with the world's financial system experiencing its worst crisis since the Great Depression.

By necessity, our first year was focused on getting New Zealand through the global crisis in as good a shape as possible, while at the same time fulfilling our election commitments and maintaining our international credit ratings.

The worst of the global crisis has now passed and the economy has begun to grow again.

New Zealand has weathered the storm better than many other developed economies.

The depth of the recession in New Zealand, and resulting unemployment, have been relatively modest compared with most western nations. Unlike a number of countries, our banking system has not suffered major stress, nor are we facing an impending fiscal crisis.

To help sustain economic activity and support jobs, the Government significantly increased its borrowing, absorbing much of the shock of recession on its own balance sheet.

Temporary measures helped increase liquidity and assist banks to raise funds offshore. The Reserve Bank sharply lowered the Official Cash Rate.

We are now looking to encourage a sustainable recovery that creates jobs and lifts the incomes of New Zealand families.

We are keeping a tight lid on new spending for the foreseeable future, and you will see that in next month's Budget.

It will enable us to keep public debt under control.

We are also reforming social sectors, like the welfare system, education, the justice system, and state housing.

I know that New Zealand's wealth is ultimately generated by the private sector, and that it is businesses which will ultimately bring about a step change in our economy.

So my government is also making changes to help strengthen New Zealand businesses, and to make our country an even more attractive place for companies like yours to do business.

We have already completed the first stage of reform of the Resource Management Act, our major environmental legislation.

We are reviewing other areas, too, because New Zealand's economic recovery cannot be held back by inefficient and costly red tape.

We are pouring billions of dollars into a major infrastructure building programme to unclog the arteries of the country.

We are also looking at reforms to the tax system to encourage saving and productive investment rather than borrowing and consumption.

I'd like to tell you more, but decisions around tax reform will be announced in the Budget in just over a month from now.

Finally, I'd like to say how much I value the relationships New Zealand has with the companies that many of you in this room represent.

The contribution you have made to New Zealand's growth and development is welcomed.

I believe New Zealand will offer more opportunities for you in the future.

The measures that we are taking domestically, along with the partnerships we are forging through our trade agenda and the TPP, will stand us in very good stead.

And with organisations like this council, building and strengthening personal relationships, I think we can all look to the future with optimism.

I look forward to seeing many of you at the Partnership Forum in New Zealand early next year.

Thank you.

Ambassadors, High Commissioners, Alliance delegates, distinguished guests.

Welcome to New Zealand.

It gives me great pleasure to be opening this important meeting.

Just a few months ago the Global Research Alliance was an idea with a handful of backers.

Today, as I look around and see 28 member countries represented here in Wellington, it is clear that it is an idea whose time has come.

I'd also like to acknowledge the observers who are here. Your involvement is welcomed and represents an opportunity for us to take another step forward.

The Global Research Alliance was launched in Copenhagen in December. For me it was the highlight of what were often difficult and complex climate change negotiations.

New Zealand is pleased to be hosting a group that spans all the continents and includes both developed and developing countries.

We are here to face one of the defining challenges of the early 21^st century - how to feed the world's growing population while at the same time limiting greenhouse gas emissions.

The mission and purpose of the Global Research Alliance is clear: to allow more food to be produced while reducing the emissions intensity of that process.

I'm not going to tell you that this mission will be easy to achieve, because it won't be.

But by harnessing the collective talents of people in the Alliance countries, I believe there can be success.

I want to take just a few moments to talk about the scale of what we face.

First, the world's population is growing. It is estimated that world food production will have to rise by 50 per cent by 2030 to meet increasing demand.

This is not just a big number somewhere way off in the future that we can ignore. This number represents food needed for real people. And it is only 20 years away.

Second, we must find ways to produce more food without growing greenhouse gas emissions.

Fourteen percent of the world's greenhouse gas emissions are from agriculture and that number is projected to grow. In New Zealand, agriculture accounts for almost half of our emissions so this is an issue we know very well.

We have a highly unusual emissions profile for a developed country - no other developed country even comes close to having half of its emissions from agriculture.

But having a high proportion of emissions from agriculture is not so uncommon for developing countries - and many of those countries are represented in this room.

We must find ways to handle the huge increase in food production that the world will need while reducing the emissions intensity of food production.

That is the challenge before this group.

It is fair to say that food security has not been top of mind for the past couple of years. The global economic downturn and international efforts to agree a climate change framework have instead taken centre stage.

It's also fair to say that the area of agriculture greenhouse gases has not been top of mind in terms of global climate change research.

Very few viable mitigation options have been identified for the agriculture sector, and those that do exist can be technically difficult to implement and sometimes temporary in effect.

By comparison, in the transport and energy sectors, governments and the private sector around the world have been hard at work developing green technologies.

I believe research into emissions from agriculture deserves, and needs, more time, money and coordination devoted to it.

Partly that is because I am a New Zealander.

As I said before, agriculture accounts for close to half of New Zealand's greenhouse gas emissions.

That reflects the strength of the primary sector in this country. We are efficient at producing food and in particular at turning grass into valuable protein.

It also reflects how carbon friendly some of the other sectors of our economy are. For example, about 70 percent of our electricity is generated from renewable sources.

So you can see why, here in New Zealand, the issue of agricultural greenhouse gas emissions looms large in our minds. It is a big deal for us.

It is also an important area of research for us because we have something to offer.

We have a proud history of primary sector innovation, and one that belies our small population.

New Zealand pioneered refrigerated transport in the late 19^th century, sending sheep carcasses to the other side of the world.

We also developed herring-bone milking sheds, used genomics to improve cow and sheep breeding rates, and worked on new pasture breeds and varieties to make our farms more and more efficient.

The Government is making significant funding available for research into greenhouse gas emissions from agriculture.

That includes the New Zealand Centre for Agricultural Greenhouse Gas Research in Palmerston North, which you will have the opportunity to visit on Saturday.

This centre is supported by $50 million of Government funding over 10 years, on top of the $45 million we committed to the Alliance in December last year.

So I am pleased that New Zealand is able to offer something to this Alliance.

However it will be only one offering amongst many, many others.

Our countries all bring something to the table. The point of this Alliance is recognising that it is through collaboration, and by pooling our expertise, that we can get results.

Just look around. We have scientists and policy makers here from many of the world's major countries.

Together, you have access to an enormous pool of intellectual talent and science funding.

The first meeting of the Global Research Alliance is very important to maintaining the momentum we established at Copenhagen.

This Alliance is a work in progress. Obviously we all want to move forward as far as we can over the next few days, but we are not trying to resolve everything at this meeting.

Many of the delegations here will need to reflect on the outcome of this meeting before committing themselves. That is understood.

Flexibility is the order of the day.

There are too many examples of international negotiations in the fields of trade, security and climate change itself, running into gridlock.

This is the last thing we want or need.

The reality is that we have come together on a voluntary basis, based on a common view of the need to accelerate research in this area.

We're in this together.

So on your journey home, I hope you will all be able to reflect on a solid and productive session here in Wellington.

A session that has taken the collective agricultural and research capability you represent a significant step closer to a future where the world can grow more food, with fewer emissions.

You have my best wishes as you come together for this meeting.

Thank you.