Envoys say it's looking much rosier in Britain

Do not believe all the tales of doom and gloom about the state of the British economy, British deputy high commissioner Mike Cherrett says.

Mr Cherrett was in Palmerston North yesterday on a fact-finding mission to seek ways of getting Manawatu businesses to think about expanding to Britain.

He and high commissioner George Fergusson are travelling New Zealand to spread the good word about Britain's improving and environmentally friendly economy.

Besides talking to the Manawatu Standard, Mr Cherrett spoke to lecturers at Massey University and met representatives from business advocacy and economic development groups.

When looking at the British economy, do not get sidetracked into thinking it was going down the tube, just because the financial sector was struggling, he said.

"Britain is one of the most globalised outward looking economies in the world."

Its manufacturing industry was the sixth largest, and made up 12 per cent of Britain's gross domestic product. In contrast, the financial services sector made up 8 per cent, he said.

There was no denying that the recession had had an effect on the British economy.

"You would expect an economy like that to have taken a tumble and we certainly have."

But Britain was now coming out of the recession and would start growing its economy again early next year – albeit slower than France and Germany, he said.

Much of the negative press about Britain's economy was due to a British tendency to focus on the negatives.

Many well-known global companies were now doing business in Britain, and taking advantage of the country's research and development expertise. And that would be a strong selling point for New Zealand businesses, he said.

Britain's life sciences and pharmaceutical sectors were also expanding.

Britain's greening economy would also be an opportunity for New Zealand businesses to enter the British marketplace.

Mr Cherrett said New Zealand was moving in the right direction in addressing climate change with its emissions trading scheme.

British climate-change legislation required an 80 per cent drop in all emissions by 2050, with a target to achieve a 34 per cent drop by 2022.

"We believe that puts our money where our mouth is."

The European Union as a whole would also be taking the climate change obligations of developing nations much more seriously.

It would provide as much as US$100 billion (NZ$135b) in aid a year to help those countries meet climate change obligations, he said.

British consumers demanded to know the environmental credentials of purchases, he said.

Britain had a budget deficit in 2008-09 of 90b (NZ$206b). Its banking system received a 500 million government bailout in 2008.

* Mr Cherrett is three years into a four-year posting in New Zealand. He has a background in engineering.

* Anyone who wants information about doing business in Britain can contact UK Trade and Investment on 093035019.

- © Fairfax NZ News