Comments

David Thompson Posted:
So very, very true. It beggars belief that we consider ourselves to be a developed nation when so much of our economy is based on selling milk powder or logs. BTW, I own a Plinius amplifier (my second) that drives a set of Theophany speakers.
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David Thompson Posted:
A robust but sobering report. It concerns me that confidence is rising, yet sales and exports are down and "manufacturers and exporters are still lagging behind other sectors". Surely we should wait until we're earning more money before we start spending more?
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siemens Posted:
Yes true! The only thing that will never die in this world is the nature and its science behind it. Great post.
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Kieran Ormandy Posted:
Thanks for the question Steven, Germany has seen increases in manufacturing employment since 2009, and Switzerland has had stable manufacturing employment between 2006 – 2011, even in the face of ongoing Euro-zone issues. Korea has seen increases in manufacturing employment since 2008 and Israel experienced large increases since 1998, while being stable over the last 4 years. Singapore has had increases in manufacturing employment over the last two years. These countries all value their manufacturing sectors and work to protect them, this is reflected in the above numbers and their performance through the GFC. Note data around the above examples was sourced from OECD labour market stats.
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John Walley Posted:
Point one: you should have no doubt what our Association says publically represent the views of our members. Point two: we don’t knee jerk responses, if you trace back our comments around NZPower you will see them link all the way back to our research in 2004 and 2005. All that material is fully linked from our comments above. Point three: you will note our comments on major users, sadly the same advantage does not accrue to smaller industrial users. The perverse incentives of the LRMC approach in all this are well known. Point four: the NZMEA is not like any other Association in New Zealand we admit only manufacturers and exporters into membership, and our public expressions are the views of that restricted membership.
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6/12/10

OCR cut still justified


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A larger than expected operating deficit for the Government shows an Official Cash Rate (OCR) cut is still justified say the New Zealand Manufacturers and Exporters Association (NZMEA). A lack of business growth combined with low consumer spending has reduced the tax take putting further pressure on the Government’s balance sheet.

NZMEA Chief Executive John Walley says, “The fast rise in the New Zealand dollar since July has meant that the export led growth that may have been anticipated has not eventuated. The premature rises in the OCR in June and July exacerbated that problem.”

“Certainly results from our latest survey indicate that the dollar’s rise has started to take effect.”

“Reversing those early OCR rises would at least go some way to healing their damage.”

“Action is also needed from the Government. They have noted that a focus on savings is needed in the next Budget, but policies to promote growth must also be a priority; the initiatives introduced so far have been underwhelming. Moves to manage the currency and to balance the tax system are needed for the real economy to rebound.”
 



tags: ocr, currency, tax balance, export growth

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