The integration of Australia and New Zealand into a Single Economic Market (SEM) will provide opportunities for Kiwi law firms that approach the changes with the right attitude, said Kensington Swan CEO Chris Heilbronn.
Trans-Tasman integration is expected to hit new heights this year after Kevin Rudd and John Key took the next step towards a common regulator framework by signing a statement of intent to “Principle 7”. This is the last of the seven principles which will guide the SEM program.
“Any change, whether it sounds good or bad at the outset, always provides lots of opportunities – it’s just a question of how fleet of foot you are,” Heilbronn said, although he conceded that the SEM would provide its fair share of challenges for Kiwi law firms also.
Management of some of New Zealand’s largest companies will become increasingly centralised in Australia, which will have an impact on Kiwi law firms, Heilbronn said. As a result, Australian legal counsel will control the companies’ legal spend and determine how to utilise their external legal spend in New Zealand.
“The exciting thing is that all change is good and it is just a matter of working out how to turn it to your advantage,” Heilbronn said. “It is hard, though, for us to take on an Australian firm. We deal with the big firms over there and they’re juggernauts in comparison to the New Zealand firms.”
He said that as progress is made towards a SEM, New Zealand firms will increasingly have to confront these issues. So what are Kiwi firms’ advantages? “We’re very talented, very practical and we’re cheaper,” Heilbronn said.
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