Consulat général d'Australie
Nouvelle-Calédonie - Polynésie française - Wallis & Futuna
Adresse: Immeuble Foch, 19 avenue du Maréchal Foch (7ème étage), Nouméa - Téléphone: 27 24 14 - Fax: 27 80 01

Presentation by Jane Urquhart, Australian Consul General to New Caledonia to the Australia-Pacific Islands Business Council’s 2007 Forum on New Caledonia

Delivered 13 September 2007


Ladies and Gentlemen,

ּ Doing business with New Caledonia takes a bit of effort – there is a lot to learn about local cultures (note I use the plural) and ways of doing business, as well as the local rules of the game in protocol, law and what is culturally appropriate. But you will find that a bit of effort is appreciated – even if it involves the odd faux pas. Ideal is to sign up for an Austrade Mining Mission, or the APIBC-Queensland Business Mission. Attending this forum is a good decision - the program incorporates presenters who are at the centre of their various subjects and best placed to advise you on the opportunities that exist, the issues to bear in mind and the keys to success.

ּ There are a number of agencies and organisations from whom you can seek information and assistance

– Starting with myself and the Consulate, we are responsible for managing Australia’s bilateral relationships with the French territories (New Caledonia, French Polynesia and Wallis and Futuna)

: DFAT staff posted to the Consulate – the Consul General (myself), the Deputy Consul-General (Stephan Bohnen) and the Consul (Derek Montague), represent Australia's national interests to government authorities in the French territories including interests of specific Australian firms and the collective interest of Australian industry sectors needing market access. We are also responsible for providing consular assistance to distressed Australians

: Austrade – where you will find Sonia Magrou and Isabelle Feugier - is our trade and investment promotion agency, responsible for promoting Australian commodities, goods and services, matching business opportunities with domestic capability and providing direct advice and assistance to firms.

: the Consulate has a web page – mostly in French to better explain our services to citizens of the French territories – but also on that web page we have made room for a business portal, where you can find information in English tailored to Australian business interests, including information on work permits, incentives for investment in New Caledonia and a list of useful contacts, including the APIBC and the Australia-New Caledonia Business Circle. In the near future, we plan to include further information about labelling and standards and other issues, brought to our attention, where fact sheets might be useful.

: Also on your list of Favourites, should be Austrade’s webpage where you can find country and industry profiles.

ּ New Caledonia is already a significant market, one that’s growing fast, with considerable potential to grow more:

– New Caledonia has climbed up the ranks in the last twelve months to be Australia’s fourth largest buyer of exports in the Pacific (after New Zealand, PNG and Fiji)

– In CY 2006, Australian merchandise exports to New Caledonia totalled AUD 277 million (mostly coal and civil engineering equipment)

: This represents a new high. After a drop in exports, with the shift of petroleum products being sourced from Singapore rather than Australia, between 2004-05 and 2005-06, Australian exports to New Caledonia grew by 47.4 per cent, with increases across most items, but predominantly related to construction of the Goro mine and the Prony Energy plant in the South of New Caledonia.

ּ But even with this increase in exports, New Caledonian import duties on non-EU products and other import taxes and quotas restrict Australia's market share to just under 10 per cent (behind France and Singapore)

– As an aside here, we expect, with the construction of the coal-fired Prony energy plant, Australia’s coal exports to drive further growth over the next five years and this could push us ahead of Singapore, back into second place after France.

ּ In 2002, in recognition of growing business ties between Australia and New Caledonia, as well as concern on Australia’s part to engage on barriers to trade, the two governments signed a Trade and Economic Relations Arrangement – essentially a framework for expanding bilateral trade and investment flows

– the framework committed the two parties to biennial officials’ talks and the most recent session was held in Noumea in November 2005

– that session yielded a range of advances on bilateral trade and economic issues, including

: New Caledonia's willingness to further explore options for reduction of duties;

: agreement by New Caledonia to expand its recognition of Australian education qualifications; and

: agreement to pursue cooperation (including information/personnel exchange) in taxation, quarantine, mining services and professional training.

ּ Most significantly, the two delegations agreed to continue pursuing the agenda through a working group in Noumea, comprising myself and Cameron Diver, and, since the 2005 Trade Talks, our ongoing work has yielded positive developments, including:

– recognition by the New Caledonian Government of 74 Australian qualifications for public service entry, bringing the total of qualifications recognised since 2004 to 96;

– facilitation of construction of the underwater fibre optic communications cable between New Caledonia and Sydney;

– cooperation, information exchange and policy developments in relation to agricultural trade and quarantine, including
: intensified New Caledonian interest in Queensland-bred Brahman, embryos, tick-management consultancies and meat classification systems, following a visit to Queensland in September 2006 by a New Caledonian agricultural delegation;

– there has also been intensified information exchange on information technology, on public service reform (including a visit to New Caledonia by Australia’s Merit Protection Commissioner in 2006) and information exchange (on Australia’s GST experience) relevant to New Caledonia’s exploration of the implications of reducing import duties, possibly introducing a VAT or removing its customs duty

– establishment of a private bilingual school in Noumea (James Cook International, opened in June 2007), following the NSW and New Caledonian curricula simultaneously, for use by foreign and local families and

– support for exchanges between Queensland and New Caledonia, with a draft of an updated cooperation agreement finalised and ready for signature.
ּ So the picture is improving all the time – and the two governments are working steadily to improve the conditions for both sides

– So far my exchanges with the new Member of Government for the Economy and External Trade have reassured me that there is keen interest in getting further runs on the boards to the benefit of both countries before the next session of trade talks.

ּ In terms of opportunities, I would highlight to you:

– the nickel industry, obviously the developing Goro project, and the exciting potential of the Koniambo project, but not forgetting the needs of the major established player, Societe Le Nickel, which has ongoing requirements for goods and services that Australia is well placed to provide;

– Agriculture – particularly in relation to New Caledonia’s cattle industry;

– Heritage and conservation – a possible new niche market with intensified interest in the Southern Province in moving to conserve heritage convict and colonial architecture;

– The 2011 South Pacific Games – with a sporting and cultural centre to be built at Koutio, and needs across equipment, sound, lighting and performance systems – about which Cameron will brief you later today;

– New arrival and departure halls for the international airport – for which the major contractor has been selected – but through whom there will be sub-contracts available;

– Construction of new quarantine facilities;

– Construction of a new hospital;

– And we continue to be natural partners for New Caledonia in tourism development, sea and air transport, financial services, and in education and training.

ּ The next round of trade talks will be hosted by Australia in early 2008 – so for those who are doing business actively with New Caledonia, and who have concerns that they would like to see reflected in the agenda, now is the time to engage.

ּ In 2005, business players were invited to participate in an open session of the trade talks and the APIBC and its local counterpart the Australia-New Caledonia Business Council (CAANC) were an important presence. I would expect this pattern to be repeated and would urge you to channel any comments/concerns you might have on the agenda through these agencies or my office.

ּ By way of a final comment – the word “partnership” has been central in our thoughts in developing the commercial relationship over the last three years. There are enormous opportunities opening up in New Caledonia, for which Australian suppliers of goods and services are well-placed, and at the same time, there is a political imperative locally to pursue economic development and open up employment and training opportunities for New Caledonians. I believe firmly that a company that seeks to build its interaction with New Caledonia around a partnership with a local firm, or by establishing a local presence, will be best-placed to secure a durable and profitable engagement.

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