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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25/11/11

Same old same old won’t fix the economy


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

A real change in economic policy is needed from whoever forms the next government say the New Zealand Manufacturers and Exporters Association (NZMEA). It is clear that our policy framework has encouraged consumption fuelled by debt rather than savings and export investment; this must change if our economic decline is to be reversed.

NZMEA Chief Executive John Walley says, “All political parties agree we have to grow the real (traded) economy, what differs is how that will be done - the right argues that more of the same will fix it, but under the policy ‘status quo’ the real economy has been in decline since 2003. In our view change is fundamentally necessary, and it is a triumph of hope over experience to anticipate better outcomes while changing nothing.”

“Changenz.co.nz talks about the past and current decline and the required changes as we see them. It is clear that Labour have adopted some of these positions - new policy targets for the Reserve Bank and a Capital Gains Tax. It must be acknowledged that they have moved on from the economic position they held in the past.”

“On the other hand the minimum wage rise and further welfare commitments will undo some of those advantages and show a lack or understanding of where the world is today. National’s don’t rock the boat strategy at least does not impose extra costs on businesses. No party ticks all the boxes.”

Whatever happens on Saturday, for the real economy to grow faster policy settings have to be rebalanced. We must borrow less through a mix of tax changes and spending cuts and most importantly earn more by:
• Targeting monetary policy at non-traded inflation.
• Balancing the tax mix to include capital gains.
• Fiscal incentives to support traded sector investments.

“Sooner or later such changes will have to be implemented – our creditors will insist if we continue to ignore the traded economy.”
 



tags: changenz, election 2011, exchange rate, monetary policy, capital gains tax

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