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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23/8/12

Council makes right call on local procurement but more work to be done


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The Christchurch City Council have reached the right decision by choosing to include local preference provisions in their procurement policy say the New Zealand Manufacturers and Exporters Association (NZMEA). However, there is still work to be done on the exact process.

NZMEA Chief Executive John Walley says, “The Council need to be commended for their decision to maintain local preference as part of their procurement policy. While the Council is under debt pressure with a lot of infrastructure to rebuild, a focus on local preference will help to improve this situation in the long run by providing more long-term growth in the region and the related rates revenue. The task now is to pinpoint exactly how local preference will be implemented.”

“It is worth noting that a margin of 25% in price was considered appropriate in the buy American preference introduced in the first Obama stimulus package.”

“With New Zealand’s small population it is difficult for firms to attain the scale necessary before entering into export markets. The one area such scale does exist is in the public sector where contracts can be large enough to help firms to achieve some scale and drive innovation. One way to kill local innovation is to demand in any tender that only ‘proven’ solutions should be offered. The scale issue makes it even more important for our rates and taxes to be spent locally whenever possible.”

“A policy set that accommodates the impact of transient issues like exchange rates, the development and support of capability in the economy, the maintenance of capacity in economy, and lifetime costs such as service, upgrade and maintenance should be the goal of the Council.”
 



tags: christchurch city council, local procurement, export markets

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