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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10/12/13

RBNZ right to change LVR rules


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Today the Reserve Bank of New Zealand (RBNZ) announced changes to the Loan to Value Ratio (LVR) speed limits, removing the restriction against new residential builds. This is a sensible concession, reducing some of the political pressure on the LVR policy, and supporting expansion of the housing stock. We need more than a simple reliance on interest rates, say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive John Walley says, “This is a sound response to the claim that the LVR policy was slowing new builds. There could also be a case for regional exemptions as the real asset price pressure is in Auckland and Christchurch.”

“It is important we look beyond the immediate influence of the LVR policy on the housing market, and look to the consequences of increasing interest rates across the economy, particularly for added value exporters and import competing manufacturers. With only interest rates in the RBNZ’s tool box we might well have seen higher interest rates by now when others, such as Australia, are still looking at further loosening of their monetary policy. This contrast is a real worry for exporters.”

“This concession is the right one, but should not detract from the need for LVR policy and perhaps other prudential restrictions at some point.”



tags: lvr, loan to value ratio, housing, exports, interest rates, ocr, reserve bank of new zealand, rbnz

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