web analytics

Joyce floundering on manufacturing

Written By: - Date published: 11:27 am, September 11th, 2012 - 15 comments
Categories: australian politics, Economy, employment, exports, spin - Tags:

Talk fast, shoot the messenger, and spin like a top. That’s Joyce’s style, trying to defend the indefensible; National’s neglect of New Zealand’s manufacturing industry.

He tried it on the Nation a couple of weeks ago, and again on Morning Report this morning. Amidst all the gabble, Joyce attacked John Whitaker, CEO of the highly respected and long-established Dunedin company Farra Engineering.

Whitaker said:

The government is not looking after manufacturers, and should take a leaf out of Australia’s approach. The New Zealand government is so hell-bent on being squeaky clean so they can enter into trade agreements with anyone and everyone so they actually neglect their own, where every other country has a lot more importance placed on their manufacturing industry and go out of their way to support them.

That criticism obviously stung – in true Joyce style, his response was to get personal and   shoot the messenger:

With the greatest respect to that gentleman in Dunedin he really does need to go and have a look around – most of the manufacturing organisations I talk to –he hasn’t been hit hard by it  — yet  — New Zealand firms are getting more competitive –to suggest that is not happening really is a little bit ungracious from one of two in the industry.

One or two? It’s Joyce that needs to go and have a look around. They’re all saying that government is not doing enough for manufacturing industry. Whitaker’s right, and they’ve been saying it for years. Australia does a lot more for its own industry, as I know from the time I was on the Industrial Supplies Office management committee under the last National government who had no  interest in using government purchasing to support New Zealand Industry. And it was this National government that refused to insist that KiwiRail build railway wagons at Dunedin’s Hillside workshops, which would have kept jobs and a manufacturing industry cluster in Dunedin.

So on to the spin. Manufacturing went up in the last quarter, says Joyce. That’s not what the latest Performance of Manufacturing Index, produced by BusinessNZ says.

The BNZ-BusinessNZ seasonally adjusted PMI for July stood at 49.4, which was a further 0.6 points down from June and again representative of the sector in a holding pattern. Compared with previous July results, the 2012 value was the lowest since 2008.

Joyce also banged on about how Norske Skog were going to invest in biofuels. David Cunliffe blew a hole in that line – National abandoned Labour’s support for biofuels in 2009.

All Joyce can say is that New Zealand firms have to get more competitive. But in the big wide world, the first thing New Zealand needs to do to compete is to look after its own. That’s where Joyce and National miss the mark by a mile.

15 comments on “Joyce floundering on manufacturing”

  1. marsman 1

    Wonder what a cost-benefit analysis of Steven Joyce would show?

  2. Carol 2

    I don’t know that this is exactly counted as “manufacturing”… but how many more times are we to see this happen?

    Kiwi initiative, starts up small successful business, and once it’s become successful, it’s taken over by some big foreign corporation?

    http://www.stuff.co.nz/business/small-business/7652788/US-giant-snaps-up-Wellington-software-firm

    • Bored 2.1

      It is taken over because any business owner with half a brain has an “exit strategy” in mind when they start a business….and it is usually a multiplier of profitability or a similar measure. Owners are not charities, they want to sell to save them time and effort actually having to earn what others will pay for the business.

      • Carol 2.1.1

        It’s not the owner selling that I mind, Bored, but the fact that it is foreign corporates that keep taking over these businesses.

  3. tracey 3

    Thanks for the title of the thread, I can’t get that awful image out of my head!!!!

  4. Bored 4

    Joyce knows jack sh*t about economics: he is however a very sharp businessman. Unfortunately he has not quite worked out the difference. Business people generally act similarly on all issues: its revenue, costs, margin etc. That’s fine except they do this regardless of the environment they are in: it is a single overarching model. Economists by contrast can suggest how to adjust the business environment to get real outcomes. If Joyce and his advisors were astute they might have noticed that the current economic model is broken and instituted a different form. Like what?

    Lets look at what I heard re the Kawerau shut down…..paper was imported from Asia to print the new Herald…wow that’s clever. So add the cost of benefits for the displaced workers, the cost of redundancies, the loss of tax income, the capital destruction etc etc to the cost of paper from Asia….what is the real cost to NZ? There is a very real logic to import controls: no capitalist economy industrialised without import protection. No industrialised economy stayed competitive with new comers without import controls….

    Whether import controls are good is another issue: what is driving the latest iteration of laissez faire is the mobility of capital. The logic of it is that capital will go where the best returns are. And f**k the locals from the new “rust belt”.

    • Draco T Bastard 4.2

      Economists by contrast can suggest how to adjust the business environment to get real outcomes.

      Considering that most of them wouldn’t know what an economy was if they tripped over one I wouldn’t be too sure about that.

    • Kevin84 4.3

      Agreed, we need Tariffs. We need them on a more local level though, as you have shown no industrialised state has developed without tariffs, so I think that if we allowed the councils around Northland and the Eastern North Island to implement their own ones (within in NZ), then I think we can get some real development there. Wouldn’t it be great if Fisher & Paykel could build a plant in Kaitaia, and Northland communities could stop the people of Northland importing those cheap Fisher & Paykel appliances from Thailand or Dunedin that under cut Northland jobs. Likewise for the eastern Bay of Plenty and the East Cape.

      I find it distressing when people go and buy a cheaper product on TradeMe from another province and import into their local province – and in doing so hurting local jobs. I cannot believe that some Waikato firms will outsource their IT projects to foreign Auckland, Wellington and Canterbury firms. What happened to local pride and community social justice. This Free Trade mantra of the past 30 years has been a disaster. We need internal tariffs NOW! We need local councils to subsidise local business now!

  5. Ed 5

    The Radio NZ links may need to be amended

  6. Tiresias 6

    I’ve taken a lot of stick on this site for my declaration that I intend buying as many Meridian et al shares as I can afford if and when they become available (all things being equal), but I’ve also put a lot of money into Windflow, a New Zealand company which has developed a world-leading wind turbine including world-leading wood-laminated blades made by techniques developed by Auckland boat-builders, and am watching that investment in NZ ingenuity, technology and jobs going down the tubes because the Government won’t lift a finger to encourage or support it. So forgive me if I won’t invest in any more NZ companies that don’t have a rock-solid market share – a’la power generators – and will look to put my more speculative investment funds off-shore where Governments encourage and nurture such things.

    If they’re not peddling a unique product in demand (and can fend off the inevitable foreign take-over) the only way New Zealand companies facing a high dollar and high transportation costs can ‘compete’ is to cut costs, and that means cut jobs and/or wages.

  7. captain hook 7

    oh well.
    we can all sit around now downloading illegal movies on ufb.

  8. Carol 8

    And Cunliffe supports, Mike Smith’s post here, and is critical of Joyce’s ad hominem against John Whitaker:

    http://blog.labour.org.nz/2012/09/11/playing-the-ball-not-the-man/

    So how did Steven Joyce respond? As Mike Smith has noted at The Standard, Joyce said:

    … [John Whitaker] really does need to go and have a look around – most of the manufacturing organisations I talk to –he hasn’t been hit hard by it — yet — New Zealand firms are getting more competitive –to suggest that is not happening really is a little bit ungracious.

    “Ungracious”? Really?

    And how arrogant is it to suggest that this successful exporter can’t see the world for himself and form his own views?

  9. Poission 9

    QA Yesterday.

    http://www.scoop.co.nz/stories/PA1209/S00155/questions-and-answers-september-11.htm

    . Rt Hon WINSTON PETERS (Leader—NZ First) to the Minister of Finance: Does he agree with the New Zealand Manufacturers and Exporters Association, the International Monetary Fund, and the Reserve Bank of New Zealand that the New Zealand dollar is overvalued?
    Hon BILL ENGLISH (Minister of Finance): We do agree with their level of discomfort about the high level of the New Zealand dollar, but we certainly do not agree with the view held by the Manufacturers and Exporters Association that the New Zealand dollar should be devalued to US60c. This would amount to around a 25 percent devaluation, implying an exchange rate against the Australian dollar of just 58c. That means a drop in income and living standards across the board in New Zealand of about 20 percent. If they think there is a gap between us and Australia now, then following the Manufacturers and Exporters Association call for a 25 percent devaluation, that gap would widen into a chasm and thousands of New Zealanders would be leaving for Australia because of its much higher standard of living

    Rt Hon Winston Peters: Does he agree with John Walley, Chief Executive Officer of the New Zealand Manufacturers and Exporters Association, that the overvalued dollar has cost the exports sector up to $10 billion over the past 3½ years?

    Hon BILL ENGLISH: No, I do not agree with that. We do agree that the high level of the exchange rate does put a lot of pressure on exporters. The Government is taking every measure it can to exercise its indirect influence on the exchange rate to help our exporters be more competitive. But we do not agree with the view of New Zealand First, the Manufacturers and Exporters Association, and the Labour Party that the New Zealand dollar should be significantly devalued. That would cut the incomes and the standard of living of all New Zealander

    and

    Hon STEVEN JOYCE: Well, I am not sure about new ideas so much as reheated, failed, old ideas from around 40 years ago. I have seen a proposal from a Mr Walley of the New Zealand Manufacturers and Exporters Association to somehow bet against the world markets with taxpayers’ funds and seek to devalue the New Zealand dollar by roughly 25 percent. That would reduce the purchasing power of every New Zealander by around 25 percent. It would increase food prices, fuel prices, and the cost of living by around the same margin, and massively widen the income gap with Australia as the result of a 58c exchange rate against the Australian dollar. If the members of the Opposition want to sign up to that prescription, then it is over to them, but I cannot think of a more destructive economic policy for this country

    The obvious take home message is the introduction of a bogeyman,that a lower exchange rate will fuel inflation,costs and the standard of living ie a focus on the negative attributes.

    The foremost problem in the exchange rate is the high levels in short term flows the so called cash and carry trade which takes advantage of the high nz overnight rates.

    To remove the short term flows we need to increase the Witholding (WHT) tax on short term investments and decrease the WHT on long investments by a step down cascade.

    A number of countries such as Switzerland have introduced this to reduce currency appreciation.( which has the interesting property of increasing the tax flow)

    A sustainable trading range in the usd of 70-72c is sustainable,and would return investment to the productive sector.

Recent Comments

Recent Posts

  • Government freezes elderly out of insulation subsidy
    Government cuts to the Warm Up New Zealand insulation subsidy means it will now only be available for rental properties and could leave many elderly homeowners cold this winter, Opposition Leader Andrew Little says. “In this year’s Budget the Government ...
    15 hours ago
  • Shewan report delivers rebuke to National
    John Shewan’s report into foreign trusts is a rebuke to John Key and the National Party who have protected an industry that has damaged New Zealand’s reputation, says Labour’s Finance spokesperson Grant Robertson. “Three years ago the Inland Revenue Department ...
    17 hours ago
  • Auckland Airport rail analysis must be made public
    The Government should publicly release its detailed analysis of rail to Auckland Airport before it closes off options, so the public can have an informed debate, says Labour’s Auckland Issues spokesperson Phil Twyford. The Transport Agency today said it is ...
    20 hours ago
  • Minister approved OIO consent despite death and investigations
    Louise Upston must say if she knew Intueri was being prosecuted for the death of a student and under a funding investigation when she approved its overseas investment consent to buy another education provider, says Labour’s Land Information and Associate ...
    2 days ago
  • Brexit vote costs NZ effective EU voice
    Despite being extremely close the result of the referendum in Britain reflects the majority voice, Labour’s Foreign Affairs spokesperson David Shearer says. “While we respect the decision to leave the EU, it goes without saying the move will usher in ...
    4 days ago
  • Pasifika Education Centre doomed
    The Pasifika Education Centre appears doomed to close down this December, says Labour’s Pacific Island Affairs spokesperson Su’a William Sio  “In a written question I asked the Minister whether he would put a bid in for more money. His answer ...
    4 days ago
  • Onetai Station review a shameful whitewash
    A report released today on the Overseas Investment Office’s (OIO) good character test is a whitewash that does nothing to improve New Zealand’s overseas investment regime, says Labour’s Land Information spokesperson David Cunliffe. “The review of the good character test ...
    4 days ago
  • We need a national strategy to end homelessness now
    Long before I entered Parliament, housing and homelessness were issues dear to my heart. I know from personal experience just how hard it is to find an affordable home in Auckland. In my maiden speech, I talked about how when ...
    GreensBy Marama Davidson
    4 days ago
  • Capital feels a chill economic wind
      Wellington is on the cusp of recession with a sharp fall in economic confidence in the latest Westpac McDermott Miller confidence survey, says Labour’s Regional Development spokesperson David Clark.  “Economic confidence amongst Wellingtonians has dropped 12% in the past ...
    4 days ago
  • Dive school rort took six years to dredge up
    News that yet another private training establishment (PTE) has rorted the Government’s tertiary funding system since 2009 shows that Steven Joyce has no control of the sector, says Labour’s Associate Education (Tertiary) spokesperson David Cunliffe. “Like Agribusiness Training and Taratahi, ...
    5 days ago
  • National’s housing crisis hitting renters hard
    National’s ongoing housing crisis is causing massive rental increases, with Auckland renters being hit the hardest, says Labour’s Housing spokesperson Phil Twyford. ...
    5 days ago
  • A Day with the PSA
    This week, along with Labour MP Kris Faafoi, I accepted an invitation to spend a day working alongside the good folk at the Public Service Association in Wellington. As the Workplace Relations and Safety spokesperson for the Greens, I was ...
    GreensBy Denise Roche
    5 days ago
  • A Day with the PSA
    This week, along with Labour MP Kris Faafoi, I accepted an invitation to spend a day working alongside the good folk at the Public Service Association in Wellington. As the Workplace Relations and Safety spokesperson for the Greens, I was ...
    GreensBy Denise Roche
    5 days ago
  • Government holds Northland back
    New information shows Northland remains the most economically depressed region in New Zealand, says Labour’s Regional Development spokesperson David Clark. “The latest Westpac McDermott Miller regional survey found that more Northlanders believe their local economy will deteriorate this year than ...
    5 days ago
  • Rebstock report into MFAT leaks a disgrace
    An Ombudsman’s report on the Paul Rebstock investigation into MFAT leaks shows the two diplomats at the centre of the case were treated disgracefully, says Labour’s State Services spokesperson Kris Faafoi.  “The Ombudsman says one of the diplomats Derek Leask ...
    5 days ago
  • More families forced to turn to food banks for meals
    Increasing numbers of families are having to go to food banks just to put a meal on the table, according to a new report that should shame the Government into action, says Labour’s Social Development spokesperson Carmel Sepuloni. ...
    5 days ago
  • We have a housing emergency in New Zealand
    Auckland, New Zealand, where house prices have risen 20 percent in the last year alone We have a housing emergency in New Zealand.  Like many people we are ashamed and angry that in a wealthy country like ours, we have ...
    GreensBy Eugenie Sage
    6 days ago
  • We have a housing emergency in New Zealand
    Auckland, New Zealand, where house prices have risen 20 percent in the last year alone We have a housing emergency in New Zealand.  Like many people we are ashamed and angry that in a wealthy country like ours, we have ...
    GreensBy Eugenie Sage
    6 days ago
  • Aussie reforms signal trouble ahead for school funding plan
    Plans by the Government to return to bulk funding are likely to see increased class sizes and schools most in need missing out on much-needed resources, Labour’s Acting Education spokesperson Grant Robertson says. “The signaled return to bulk funding is ...
    6 days ago
  • Toxic Sites – the down low on the go slow
    In  2011, I negotiated an agreement with the National Government to advance work on cleaning up contaminated sites across the country. This included establishing a National Register of the ten worst sites where the creators of the problem could not ...
    GreensBy Catherine Delahunty
    6 days ago
  • Aucklanders face new motorway tax of up to $2500 a year
    The Government wants to tax Aucklanders thousands of dollars a year just to use the motorway network, says Labour’s Auckland Issues spokesperson Phil Twyford. “Officials estimate the average city commute is 11.8km. This means for the average Aucklander commuting five ...
    6 days ago
  • 15 corrupt bank managers identified in student fraud
    New information show 15 bank managers in India have been identified by Immigration New Zealand as presenting fraudulent documents on behalf of foreign students studying here, Labour’s Immigration spokesperson Iain Lees-Galloway says. “Documents obtained by Labour under the Official Information ...
    6 days ago
  • National leaves Kiwi savers the most vulnerable in OECD
    News last week that Israel’s Finance Minister will insure savers’ bank deposits means New Zealand will be left as the only country in the OECD that has no deposit insurance to protect savers’ funds should a bank fail. Most Kiwis ...
    GreensBy James Shaw
    7 days ago
  • Comprehensive plan for future of work needed
    A Massey University study showing many New Zealanders are unaware of the increasing role of automation in their workplace, highlights the need for a comprehensive plan for the future of work, says Grant Robertson, Chair of Labour’s Future of Work ...
    1 week ago
  • Another National Government failure: 90 day work trials
    On Friday last week, the Treasury released a report by MOTU economic consultants into the effectiveness of the controversial 90-day work trial legislation. The report found that there was “no evidence that the policy affected the number of hires by ...
    GreensBy Denise Roche
    1 week ago
  • Iraq mission extension case not made
    The Prime Minister has not made the case for extending the Iraq deployment another 18 months nor the expansion of their mission, says Opposition Leader Andrew Little.  “Labour originally opposed the deployment because the Iraqi Army’s track record was poor, ...
    1 week ago
  • Denial is a long river
    William Rolleston from Federated Farmers made the absurd claim on RNZ on Saturday that “we actually have very clean rivers”. This statement doesn’t represent the many farmers who know water quality is in big trouble and are working to clean ...
    GreensBy Catherine Delahunty
    1 week ago
  • Denial is a long river
    William Rolleston from Federated Farmers made the absurd claim on RNZ on Saturday that “we actually have very clean rivers”. This statement doesn’t represent the many farmers who know water quality is in big trouble and are working to clean ...
    GreensBy Catherine Delahunty
    1 week ago
  • Melanoma deaths could be avoided by an early access scheme
      The tragic death of Dunedin’s Graeme Dore from advanced Melanoma underlines the cruelty of this Government in promising a treatment but delaying for months, says Labour’s Health Spokesperson Annette King.  “Graeme was diagnosed with Melanoma last year. He used ...
    1 week ago
  • Assessing the Defence White Paper
    The Government’s recently released Defence White Paper has raised questions again about New Zealand’s defence priorities, and in particular the level and nature of public funding on defensive capabilities. The Green Party has a longstanding belief that priority must be ...
    GreensBy Kennedy Graham
    1 week ago
  • Kiwis’ confidence drops again: Economy needs a boost
    Westpac’s consumer confidence survey has fallen for the seventh time in nine quarters, with middle income households ‘increasingly worried about where the economy is heading over the next few years’, says Labour’s Finance spokesperson Grant Robertson. “This survey is a ...
    1 week ago
  • Relocation grant simply kicks can down the road
    The response by state house tenants and social agencies to the Government’s rushed plan to shift families out of Auckland tells us what we already knew – this is no answer to the chronic housing shortage, Opposition Leader Andrew Little ...
    1 week ago
  • Peace hīkoi to Parihaka
    On Friday a Green crew walked with the peace hīkoi from Ōkato to Parihaka. Some of us were from Parliament and some were party members from Taranaki and further afield. It was a cloudy but gentle day and at one ...
    GreensBy Catherine Delahunty
    1 week ago
  • Children’s Commissioner right to worry about CYF transition
    The Government must listen to the Children’s Commissioner’s concerns that young people under CYF care could be ‘negatively impacted’ as the new agency’s reforms become reality, says Labour’s Children’s spokesperson Jacinda Ardern. “Dr Russell Wills has used the second annual ...
    1 week ago
  • Bill English exaggerates PPL costs to justify veto
    The Finance Minister has used trumped-up costings to justify a financial veto against parents having 26 weeks paid parental leave, says Labour MP Sue Moroney. “Bill English’s assertion on RNZ yesterday that the measure would cost an extra $280 million ...
    1 week ago
  • Government must refund overcharged motorists
    Labour is calling on the Government to refund motor registration fees to three-quarters of a million Kiwi motorists whose vehicles were wrongly classified under National’s shambolic ACC motor vehicle risk rating system, Labour’s ACC spokesperson Sue Moroney says.“Minister Kaye’s ridiculous ...
    2 weeks ago
  • 90-day work trials an unfair failure which must change
    A new Treasury report shows the Government’s 90-day trials haven’t helped businesses and are inherently unfair, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. “The Motu report found that 90-day trial periods had no impact on overall employment and did not ...
    2 weeks ago
  • Massey East houses a start but Nick Smith should think bigger
    The Massey East 196-home development is a start but the Government must think bigger if it is to end the housing crisis, Labour’s Housing spokesperson Phil Twyford says. “It is great the Government is finally realising it needs to build ...
    2 weeks ago
  • More changes needed to ensure fewer cases like Teina Pora’s
    Teina Pora spent 21 years behind bars for a crime he didn’t commit, shafted by a Police investigation that prioritised an investigator’s hunch over the pursuit of credible evidence. Yesterday’s announcement that the government is to pay him $2.5m in ...
    GreensBy David Clendon
    2 weeks ago
  • New Zealand Labour sends condolences to UK
    The New Zealand Labour Party is sickened and saddened by the murder of British Labour MP Jo Cox, Labour Leader Andrew Little says. “Ms Cox was killed in cold blood while simply doing her job as a constituent MP. She ...
    2 weeks ago
  • Shameful refugee quota increase still leaves NZ at the bottom of the list
    Minister for Immigration Michael Woodhouse announced this week that the government will put off increasing the refugee quota by 1000 places until 2018.  It’s a shameful decision that undermines the Government’s claim that it takes its international humanitarian obligations seriously, ...
    GreensBy Denise Roche
    2 weeks ago
  • Paula Bennett as a victim hard to swallow
    The National Party spin machine has gone into overdrive to try and present Paula Bennett as the victim in the Te Puea Marae smear saga, says Labour Housing spokesperson Phil Twyford. “Bill English in Parliament today tried valiantly to paint ...
    2 weeks ago
  • Voters to have the final veto on paid parental leave
    New Zealanders will have the final right of veto on a Government that has ignored democracy and is out of touch with the pressures and demands on families, says Labour MP Sue Moroney. “Today’s decision by National to veto 26 ...
    2 weeks ago
  • Collins should put Kiwis’ money where her mouth is
    Labour’s Police spokesman Stuart Nash is calling on anyone who has received a speeding ticket for going up to 5km/h over the 100km/hr open road speed limit to write to him and he will take it up on their behalf ...
    2 weeks ago
  • Where is the leadership on equal pay for work of equal value?
    The gender pay gap in the public service is worse than in the private sector. I’ve always found this particularly galling because I expect our Government to provide an example to the private sector on things like human rights, rather ...
    GreensBy Jan Logie
    2 weeks ago
  • Kiwis’ real disposable income goes nowhere for the year
    New Zealanders’ hard work for the last year resulted in no increase in real disposable income, showing Kiwis aren’t getting ahead under National, says Labour’s Finance spokesperson Grant Robertson. “Today’s GDP figures reveal that real gross national disposable income per ...
    2 weeks ago
  • Pora case a case to learn from
    Conformation that Teina Pora will receive $2.5million from the Crown for more than 20 years of wrongful imprisonment does not fix the flaws in our system that led to this miscarriage of justice, Labour’s Justice spokesperson Jacinda Ardern says. “The ...
    2 weeks ago
  • Government needs to start again with RMA changes
    The National Government’s proposed changes to the Resource Management Act have attracted more than 800 submissions, many of them critical of key aspects of the Resource Legislation Bill. There has been much criticism of the new regulation making powers given ...
    GreensBy Eugenie Sage
    2 weeks ago
  • Bennett’s briefing completely unacceptable
    It is completely unacceptable that Paula Bennett briefed her political staff on the police investigation into Hurimoana Dennis after her meeting with him, despite it having nothing to do with her social housing portfolio, says Labour’s Housing spokesperson Phil Twyford. ...
    2 weeks ago
  • Speech to Green Building Council
    Building smarter, greener cities It will be clear to anyone who has been watching the public debate on the housing crisis that housing in New Zealand is sadly far from being economically sustainable when Auckland has the fourth most unaffordable ...
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere