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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Goff’s ‘State of the Nation’ speech shows some progress

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Confirmation of policy changes such as reforming monetary policy, closing rental property tax loopholes and restoring the Research and Development Tax Credit have promise say the New Zealand Manufacturers and Exporters Association (NZMEA). Mention of a higher top personal income tax rate detracts from a policy package that seeks to promote activity; a broad policy focus on the tradeable economy is long overdue and is to be encouraged.

NZMEA Chief Executive John Walley says, “The real economy is crying out for reform of monetary policy; this is the single biggest issue driving New Zealand’s unbalanced economy. A quick look at the graph below shows that lowering the Official Cash Rate has had little effect in stimulating productive activity.”

“A clamp down on the rental property tax loophole and broader avoidance is long overdue. As Goff mentioned it is unfathomable that a $200 billion dollar sector operates tax free. A capital gains tax or land tax is also needed so that all forms of income carry their share of the tax burden. Unfortunately a higher top income tax rate will simply encourage tax avoidance – tax should be simple, low, universal, and uniform to maximise revenue by promoting activity and minimising avoidance.”

“With a lot of these policies the devil will be in the detail, however, it is encouraging to see some that the problems in our tradeable economy are being given headline attention. In regard to the upcoming election it is for all political parties to expose their position to the electorate.”

“Past policies have overvalued our exchange rate, encouraged asset bubbles, blown out our current account deficit, stymied the tradeable economy and threatened our economic viability. These are the issues that should receive serious attention in the election campaign.”

tags: phil goff, labour, tax, monetary policy, state of the nation


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