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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Slow insurance action heads raft of earthquake issues

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Insurance issues are topping the list of concerns from manufacturers after the Canterbury earthquakes say the New Zealand Manufacturers and Exporters Association (NZMEA). The City Plan, electricity line charges and the impact of the earthquake on the labour market were other key concerns raised at a meeting last week.

NZMEA Chief Executive John Walley says, “There is hardly a company I talk to that doesn’t have a complaint regarding their insurance company. The sentiment is becoming litigious as loss adjusters try to weasel their way out of business interruption claims. The insurance companies were happy to sell cover but seem equally happy to avoid paying out.”

“It is all coming to a head as the delay has seen the business interruption indemnity period from September 2010 used up for most firms and more to follow from the February 2011 event. There is a feeling that it is the insurance companies’ studied tardiness is holding back the recovery.”

“Escalation in the costs of repairing factories expected to be minor at first assessment are not helping.”

“The potential for 20 percent rises in electricity line charges have also been reported.”

“There are also concerns about rebuilding plans. Zoning changes in the City Plan, which create new residential areas that were previously industrial, could prevent manufacturing firms from gaining consents for new activities not covered by existing use provisions,” says Mr Walley.

“Nit picking by planners is a problem and the inappropriate Council pay rises have not been matched by their performance. The grim reality of our times does not seem to diminish the ‘stick it on the rates’ entitlement mentality.”

“In addition, there are concerns that the impact of the construction effort on the labour market could crowd out existing firms, artificially raising wages and threatening long-term jobs.”

“There are a number of issues for local authorities and central government to work through. The recovery road blocks must be removed; it is clear from comments we have received that further delays in 2012 won’t be easily tolerated.”

tags: canterbury earthquakes, business interruption, city plan, insurance claims


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