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.
(view article + comment)
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?
(view article + comment)
siemens Posted:
Yes true! The only thing that will never die in this world is the nature and its science behind it. Great post.
(view article + comment)
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.
(view article + comment)
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.
(view article + comment)

Recent News

House price increases slow as new lending rules begin to take effect - QV - Stuff Business, 1 Nov 2016 New Zealand's hot housing market is showing signs of cooling down.

Global debt hits $152 trillion - New Zealand Herald, 6 Oct 2016 Global debt has hit a record high of US$152 trillion (NZD$217 trillion), weighing down economic growth and adding to risks that recovery could turn into stagnation or even recession, the International Monetary Fund has warned.In...

Business owners confident in economy - survey - 3 News Business, 4 Oct 2016 Kiwi businesses were more optimistic about the state of the economy and their own activity in the September quarter, even as their profits were squeezed. ...

Households losing wealth as debt keeps going up - Stuff Business, 4 Oct 2016 New Zealanders have become poorer over the past year.

Signs of challenges for exporters - NZMEA survey - Voxy, 6 Sep 2016 The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during August 2016, shows total sales in July 2016 decreased 15.27% (year on year export sales decreased by 20.48% with domestic sales decreasing by 6.03%) on July 2015.

.
Ad enquiry


23/8/12

Parties should support RBNZ Amendment Bill to select committee


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

The New Zealand Manufacturers and Exporters Association (NZMEA) is encouraging political parties to support the RBNZ Amendment Bill to the select committee stage. The Bill proposes changing the wording on the primary function of the Reserve Bank.

This is the proposed wording:
“The primary function of the Bank is to formulate and implement monetary policy directed to the economic objective of maintaining stability in the general level of prices while maintaining an exchange rate that is conducive to real export growth and job creation.”

NZMEA Chief Executive John Walley says, “Across the political spectrum we have agreement that the New Zealand Dollar is too high and volatile. Supporting this Bill through to the select committee stage will create open debate on the issue and perhaps some action will follow. The world is a different place today than it was in 2007 when monetary policy was last reviewed.”

“The changes to the Reserve Bank Act need to be debated - what are the targets, what are the mechanisms, how will the decisions be made, who will make those decisions and how will the Reserve Bank board be constituted. All political parties should support the Bill through to a select committee phase and front up to the arguments. What we have at the moment is not working.”

“A number of central banks around the world have taken action to prevent the overvaluation of their currency so there is now plenty of international evidence to call on. The United States Federal Reserve has just announced it is likely to have another round of quantitative easing, Canada has introduced loan to value ratios to prevent demand for household debt from pushing up their currency and Switzerland has been intervening for over a year to lower the value of their currency.”

“Lowering the exchange rate is the precursor to balancing the economy through export growth. Openly exploring options on how to achieve this has to start somewhere.”
 



tags: reserve bank act, rbnz amendment bill, exchange rate, quantitative easing, loan to value ratios

comments

0 Comment(s)



No comments have been posted yet

Name:
Email:
Website URL:
Comment:
Remember Me:
Email Replies:
Please play the ball not the man.