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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17/4/12

Will to ‘resist’ currency appreciation encouraging


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John Key’s comments that the Government is considering what can be done to resist the high New Zealand dollar are encouraging say the New Zealand Manufacturers and Exporters Association (NZMEA). Key made the comments to the Indonesian Economic Committee.

NZMEA Chief Executive John Walley says, “Clearly when Statistics New Zealand finds that 37 percent of exporting firms identify exchange rate volatility as a barrier to generating overseas income and 34 percent identify the exchange rate level as a barrier, we have a serious problem. Any action to reduce this impact will be welcomed by exporters.”

“The Swiss have shown what can be achieved in a short space of time with deliberate and committed currency intervention. Certainly the decision to leave our currency untouched while most of our competitors take measures to reduce theirs has been disastrous for the real economy.”

“Our current account balance should be the target of exchange rate action,” says Mr Walley.  “We must generate a current account surplus to emerge from our debt problems unscathed. A more stable, competitive exchange rate is a precursor to growth in the real economy which will push our current account towards surplus.”

“There are a number of options available to John Key if he is serious about addressing the exchange rate; in the end the will to make the change is the starting point.”
 



tags: current account, exchange rate, john key

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