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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25/5/11

Kerry McDonald: 'Dangerously in debt but still borrowing heavily'


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This article from the Southland Times on Savings Working Group Chair Kerry McDonald's speech to the Southland Chamber of Commerce shows his level of concern about New Zealands debt levels:

He told the group the economy was seriously weakened because of poor Government policies during the past 10 years, which allowed the housing boom to run unchecked, large incentives to invest in rental housing and a lack of response to the declining tradeable goods sector.

As a result New Zealand's net foreign liabilities, which included private and public debt and foreign investment, was similar to that of Greece and Ireland. If the country continued to borrow and spend the market would come to a "sudden stop", he said.

"It's [New Zealand's] citizens are eating its breeding stock and next season's seed – it's dangerously in debt but still borrowing heavily," he said.

To solve the problem the Government needed to increase national savings and to focus on such things as the tradeable goods sector. However, to do this the Government needed to take a harder line.

http://www.stuff.co.nz/business/money/5051060/NZ-dangerously-in-debt-top-businessman

This is the Savings Working Groups Report:

http://www.treasury.govt.nz/publications/reviews-consultation/savingsworkinggroup/finalreport/



tags: kerry mcdonald, savings working group, tradable sector

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