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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26/3/12

Peter Lyons: What are the real issues?


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Peter Lyons looks at where the problems with the economy really lie in an article for the Otago Daily Times and concludes that they are largely being ignored by the Government.

"Government retrenchment and asset sales are an ideological approach to a crisis caused by other factors. The Government is unwilling to address the real issues for political reasons. It is far easier to blame beneficiaries and a bloated government.

Firstly, our approach to targeting inflation needs urgent review. Higher interest rates in New Zealand have attracted foreign lenders and pumped up our housing market. This process has led to an overvalued exchange rate, which has decimated our export sector. No country in history has become rich by bidding up its own house prices with overseas loans. We need to encourage a saving and investment culture that supports new businesses. If the vast bulk of our savings are tied up in overpriced houses and servicing mortgage debts to foreign-owned banks, this is not going to happen.

Our universal retirement system is unsustainable in its current form.

What was initially introduced as a support for those elderly in need has become an entrenched entitlement for all. Our Government lacks the political courage to confront this elephant in the room. This bizarre system allows elderly millionaires to receive their "entitlement". We are now cutting police numbers to maintain this odd arrangement. It is easy in hard times to stigmatise beneficiaries and public sector waste.

They are not the root cause of our current dilemma. The problems relate to badly set parameters in our economy, particularly in taxation and monetary policies and retirement entitlements. Unless these are addressed by brave political leadership, we will continue to lag."
 



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Please play the ball not the man.