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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Kiwi Jobs Bill

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The New Zealand Manufacturers and Exporter support the efforts from Claire Curran on the Kiwi Jobs bill.

“The jobs bill is a good idea but we need to go much further,” says John Walley CEO NZMEA, “this is really all about local spill-over benefits from Crown spending that are not achieved when the Crown buys imports.”

“The make-up of the proposed Kiwi Jobs Commission is interesting, we really need to avoid lawyers, bureaucrats and the like, and focus on appointing more practical down to earth representatives who can bring operational experience into play.  Exporters who have been there and done that are needed in this sort of work.”  Says Walley.

“I recall the first Obama stimulus package (page 189) in the USA. Local purchases were required if the price was within 25% of an imported alternative.  The US put a number on the spill-over benefit, clearly indicating what they saw as necessary to eliminate bias.”

“For the US, government spending begins at home; it should be case for New Zealand.  Clearly this is not an issue for the WTO. It is reasonable and sensible to quantify spill-over benefits and require those benefits to be taken into account when making purchase decisions.”

“Spill-over needs to be clearly quantified, to ensure the subtle and pervasive policy differences elsewhere do not disadvantage local suppliers.  For example if other countries run low interest rates, low exchange rate policies, has supportive interventions for manufacturing industry (loans, grants, tax credits, depreciation rates, skills training and export incentives), and as a result they can make things, say, trains, cheaper than New Zealand manufacturers who have none of these advantages – who wins in the long term?  Unless the spill-over is defined by pragmatists who have been there and fought such problems, the policy makers will miss the mark yet again.” 

“This is mostly an attitude of mind, and the collective mind here is that of a cargo cult; all the good stuff comes from elsewhere – wrong-headed, yes; ill-informed, yes; short sighted, yes; unsustainable, yes – but that is the evident bias in thinking.”

“A Kiwi Jobs Commission would make a contribution; given the right skills, and the right brief to define the spill-over benefit and the determination to really implement those considerations across Crown procurement policy.”


tags: jobs commission, kiwi jobs bill, stimulus package, crown spending, us


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