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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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23/5/11

Labour beginning to offer economic choice


Print-friendly 0 comment(s) Posted in: In the media

Labour’s promise to restore the Research and Development (R&D) Tax Credit is a step in the right direction say the New Zealand Manufacturers and Exporters Association (NZMEA). Phil Goff announced that the 12.5 percent credit would be introduced in a speech yesterday that also repeated the commitments to reform monetary policy and broaden the tax base.

NZMEA Chief Executive John Walley says, “To see a major lift in our export performance more high-tech, high value add firms are needed. A R&D tax credit promotes this sort of activity so it must be supported as a tool to help rebalance the economy towards the export sector.”

“It is also hopeful that measures to broaden the tax base are to be used to further balance fiscal policy. Both National and Labour claim to advocate a broad based tax system and neither has delivered as land and capital gains remain tax free pushing the burden onto income and corporate tax. Cracking down on tax dodgers as Labour has suggested is important (although there is still no detail on how this would be done) and applying the Emissions Trading Scheme (ETS) to everyone by 2013 must be encouraged. Generally tax havens and exemptions should be eliminated; wherever they exist everyone else is burdened with more than their fair share of tax.”

Comments from John Key and others that the proposed ETS changes will increase the price of milk, butter, cheese, and meat are way off the mark.

“In a competitive market price is based on supply and demand, not the cost of production,” says Mr Walley. “If Mr Key and others believe that Fonterra or any other agricultural producer operates as a monopoly and can manipulate prices then that is a separate issue.”

“In any event greater support for R&D exists in other jurisdictions; they have experienced its pay-off. A focus on cost ignores that potential pay-off. There are no guarantees with R&D investment other than what happens if we fail to invest.”

“R&D tax credits added to Labour’s promise to reform monetary policy offers the greatest potential for economic rebalancing in New Zealand.”

“There was also some unhelpful tinkering from Labour in the speech with measures to remove GST on fruit and vegetables in particular doing little to help consumers and acting to undermine the integrity of a low and broad tax system.”

“Overall though, efforts to move the economy towards export investment must be commended; there are real political differences developing for the first time in twenty years.”
 



tags: labour, phil goff, r&d, emissions trading scheme, john key, broad tax base

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