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The Standard

Manufacturing Inquiry report

Written By: - Date published: 2:59 pm, June 17th, 2013 - 81 comments
Categories: business, greens, labour, mana, nz first - Tags:

The parliamentary inquiry into the future of manufacturing has released its report today. (Herald: urgent call to action, Labour PR: blueprint for jobs, Greens PR: there is an alternative)

I’ve not had time to read it, but it’s great to see a report by 4 out of parliament’s 7 or 8* parties, showing a united stance to one of our country’s biggest economic problems.

40,000 lost jobs in 4 years; the worst current account deficit in the developed world (overtaking Greece) – and a government that’s ignoring it.  We need some big solutions and a combined force committed to it.

So, from the Executive Summary, the Recommendations:

Major recommendations 

Recommendation 1: The government adopt macroeconomic settings that are supportive of manufacturing and exporting, including:

  • a fairer and less volatile exchange rate through reforms to monetary policy;
  • refocusing capital investment into the productive economy, rather than housing speculation;
  • and lowering structural costs in the economy, such as electricity prices.

Recommendation 2: New Zealand businesses are encouraged to innovate. Research and Development tax credits, with a stronger emphasis on development, should be introduced as part of a package for innovative manufacturing, supporting exports and quality jobs.

Recommendation 3: The Government adopt a national procurement policy that favours Kiwi-made and ensures that New Zealand manufacturers enjoy the same advantages as their international competitors.

Additional recommendations 

Recommendation 4: The tax system is used to boost investment in new technology and machinery. An accelerated depreciation regime should be implemented for the manufacturing sector.

Recommendation 5: A wide range of funding is available for manufacturers to invest in their business and employees. Measures to encourage the availability of venture capital and mezzanine funding should be continued, including government funds through commercial-managers.

Recommendation 6: Businesses are supported to achieve 21st Century organisation and practices. Policies such as NZTE’s focus on Lean Management, and the work of the High Performance Work Initiative should be extended. Apprenticeship training support for the sector should be reviewed immediately.

Recommendation 7: Manufacturers are given a voice in FTA negotiations. From the outset of FTA negotiations the interests of manufacturing must be explicitly addressed. Negotiating teams must keep the sector informed.

Recommendation 8: Measures to encourage foreign direct investment in manufacturers should be consistent with the strategic direction of New Zealand’s manufacturing and exports.

Recommendation 9: Government should lower compliance costs wherever they can be consistent with maintaining New Zealand’s values including workers’ rights, environmental standards, and product quality assurance.

Recommendation 10: Manufacturing’s ability to create jobs and boost exports should be recognised in national, regional and industry policies.

Recommendation 11: Taskforces of government local government, businesses and unions, be established to assess and act on new business and job opportunities in the wake of major closures or restructuring in the manufacturing sector.

No doubt other authors will have their say, but first look: good stuff.

* Is United Future a parliamentary party David Carter?

81 comments on “Manufacturing Inquiry report”

  1. Winston Smith 1

    “Some policies, such as the Greens plan devalue the New Zealand dollar by printing money, were left out because of “realism” and compromise, Greens co-leader Russel Norman said.”

    – So the watering down of the Greens ideals has begun

    • felix 1.1

      Interesting use of the word “ideals” there Winston.

      Not one I’ve come across before.

      • Winston Smith 1.1.1

        Probably not the best choice of word I grant you but, to be fair, I’m a bit more concerned with work so I can’t spare too much time.

        However I assume you’re intelligent enough to work out that the Greens compromise money printing means that they can now compromise on other things, the first time is always the hardest but after that it gets so much easier…

        • felix 1.1.1.1

          I’m intelligent enough to work out that none of your statements logically follow from one another, and that you’re either not intelligent enough to know that or too dishonest to bother with.

          Either way you’re of no use to me.

    • Te Reo Putake 1.2

      “- So the watering down of the Greens ideals has begun”

      Dammit, Jenny was right all along!

  2. Rob 2

    Just read the detail , but had to re read in disbelief at who the report lists as report contributers. Has anyone in this list worked or lead a scale manufacturing busines.

    Party Leaders:

    David Shearer

    Dr Russel Norman

    Rt Hon Winston Peters

    Hone Harawira

    Committee Members:

    Hon David Parker

    Denise Roche

    Andrew Williams

    Dr Megan Woods

    Other members who took part:

    Hon Clayton Cosgrove

    Dr David Clark

    Phil Twyford

    Andrew Little

    Julie-Anne Genter

    Gareth Hughes

    • felix 2.1

      Looking forward to seeing you discard John Key and Bill English’s responses on the same basis.

      • Saarbo 2.1.1

        and the rest of the National Party…

        Would have been a good idea to have an ex BCG Consultant on the committee I would have thought though!

        Never the less it looks pretty good to me and I’ve spent a little bit of time working in manufacturing businesses selling in export markets.

        • Colonial Viper 2.1.1.1

          Don’t need a manufacturing guru in there, just need people who understand how Japan, Germany, Korea and Taiwan went from backward wrecks to industrial and technology giants.

          Ideally people who also understand that it can’t be done again in the same way in the age of resource depletion.

      • tracey 2.1.2

        +1

        English has only ever worked in Treasury hasn’t he? A career bureaucrat (despite laughable claims of being a farmer).

    • Arfamo 2.2

      It would be equally interesting to ask whether anybody who has worked in or led a scale manufacturing business has had any experience in forming and running a successful government, there being some considerable difference between the two functions.

    • Lightly 2.3

      Well, the chair, Cam Moore, is a well-known manufacturer.

      And did you take a look at the submitters?

    • karol 2.4

      Also it says:

      The Inquiry was also supported by an Expert Adviser and Report Writer, Professor Nigel Haworth, of the University of Auckland Business School.

      David Parker has a business background.

      Julie Anne Genter has worked in/with the transport industry.

      Megan Woods has worked as Business Manager, at Plant & Food Research Ltd

      … etc, etc.

    • lprent 2.5

      Consider if it was from National, united future, act and the maori party. The nearest to having any manufacturing background would probably be Nick Smiths engineering. Apart from him, it’d be hard to find anyone in any of those caucuses who was involved in business in anything apart from a retail or parasite role (Joyce’s Media works with their helpfully overbidding on frequencies comes to mind, or John Keys currency manipulations).

      We don’t elect people to be experts. We elect them to communicate with experts and us.

      As someone else pointed out, there is a considerable degree of business background in the group. Which means that they are at least capable of understanding the language and the Issues to the point that they can formulate policy.

  3. Pete 3

    What’s really encouraging is that the opposition is putting together an integrated policy platform to bring to the electorate in 2014. They are starting to look like a government in waiting, at least policy-wise.

    • Arfamo 3.1

      Yep. Creates an interesting situation for Key’s government. They have to start attacking employers and innovators to rubbish it. Good to see the debate begin. It’s long overdue.

  4. Rogue Trooper 4

    “these recommendations mirror standard parctices overseas” in non-tory-toady, non-banana republics.
    however, taking into account global economic conditions, Aus, Italy, manufacturing coming off in Germany even…

  5. Te Reo Putake 5

    Straightforward commitment from David Shearer:

    “We will:

    1) Tackle our overvalued and volatile dollar.
    2) Encourage innovation through R&D tax credits.
    3) Give Kiwi companies first crack at Government contracts.

    Manufacturers are doing all they can do. Working hard. Taking risks. Innovating. But they need a Government that backs them.

    This Government isn’t listening. Leadership is required. We will provide it.”

    • Winston Smith 5.1

      Considering the FTAs that have been signed, can we (NZ) actually do that? I’m thinking about the agreements signed by National and started by Labour (and good on Labour for the work by the way) with the Chinese

      Although I do agree that NZ companies should get first go at NZ govt contracts where feasible

      • Te Reo Putake 5.1.1

        Good question, WS. Possibly your best ever! As we don’t know what’s in the recent Trans Pacific FTA, it could well be an anchor on that ambition. But the Aussies favour local suppliers, so I assume we have just as much right to buy locally as they do.

      • Bunji 5.1.2

        US like to guarantee 27% of contracts to local small businesses – and some of our companies are very good at establishing local small businesses to get those contracts – with local employees.

        WTO doesn’t seem to have a problem if – like Australia and many others – you take the full cost into account – ie you look at how much you’ll get back in tax, how much you’ll spend on additional unemployment benefit etc if foreign company does your contract. It’s only sensible.

      • tracey 5.1.3

        how do you define ‘where feasible” WS?

  6. Rogue Trooper 6

    Rec.1 exchange rate likely to rise with inevitable RB and retail bank interest climbs.
    refocusing investment will be going against the entire socio-cultural grain and immigration trends.
    NZPower.

    Rec.2 the bottom line is under pressure already. R&D Investment by business / owners investors in addition?

    Rec.3 Yes.

    Rec.4 accelerated depreciation in an environment requiring increased govt. social spend; Health, Justice.

    Rec.5 NAct already claim 300 business development initiatives.

    Rec.6 Yes

    Rec.8 Chinese.

    Rec.9 Well, that is already happening.

    Rec.10 “oh, but the government (NAct) doesn’t create jobs” will be the echoed cry from Joyce.

    Rec.11 Yes.

    • Rogue Trooper 6.1

      I wondered where ‘7’ was; good luck with that!

      • Tim 6.1.1

        Yea – I was thinking the same re Rec 7 – especially after that last little South American jaunt by the Key and bizniss ‘representatives’. Do you know what’s become of that btw?
        I wonder if Fran has an opinion – I’ll watch Q+A (for amusement, more than anything else – but in the hope that the expertise she claims looks a little better than that Emperor with no clothes).

        Key came back proclaiming the South American jaunt a ROARING success. Me thinks not – we’ll see.
        Just that any future little jaunt to (say) India will be interesting to say the least. When’s Seth Efrica on the agenda do you reckon!
        All all looks a little bit like straw clutching wouldn’t you say?

        But…You know why the perceptions of ROARING successes of the junta don’t pan out that well? It’s the same reason that goes with all the other Grosser-style negotiations.
        (it’s not surprising though when Grosser’s PRIMARY motive is self-agrandissement, THEN what he thinks is NZ’s ‘good’). Despite his grandstanding and practised elocution – the guy’s ineffectual in the sense that He thinks he has the Divine right, whereas his audience (that actually matters), think he’s just another wanker.

        These ‘folk’ (to be diplomatic) hop on a plane, well equipped with a dose of arrogance, a load of egos the size of buses, cultural insensitivities, Holier-than-thou attitudes, et al, sometimes even Air Force-provided little treats and trinkets, and head wherever – thinking that the rigors of lengthy flight times they have to ‘suffer’ are sufficient and provides them with entitlement.

        (Keith Locke has a good piece on that ‘other’ site TDB re the Chinese).

        They fail to realise that those they deal with are actually REALLY diplomatic. They’re polite, but they’re NOT about to engage in any substantive sort of way with NZ (under a Key junta), even though they might reciprocate with a smile and wave, ESPECIALLY when we actually treat some of their nationals here like pieces of shit – including, and probably especially when some of those treated like shit are related to the very diplomats (and in future – the politicians) they’re trying to grease up to. (Bit of an intelligence slip up that all that could have occurred aye).

        I met one such diplomat’s son quite recently. Just as Key was back home proclaiming the ROARING success – the ‘horses mouth’ so to speak, was telling me that they actually thought Key was a bit of a wanker – and it wasn’t JUST because of his crass attitude towards a funeral.

        It’s pathetic to watch really.

        Roll on India aye Jonneekee? I can’t fucking wait!

        I mean, I’m sure the National Sikh will be on the plane, but rest assured there are plenty that think even he is playing for the wrong team.

  7. Alanz 7

    Great initiative at reaching out, connecting with the people, and building consensus.
    To the parties involved, thank you.

  8. Tom 8

    Waited for the much antisipated coverage of the manufacturing inquiry report by tv3 didn,t wait long only 34 minutes, just managed to sneak in before the sports. Russel as normal got a sound bite in on how we should print money. John Key managed to smash its entire credibility within seconds. the leaders refused to look cohesive and ready to govern to the extent Winston refused to have his photo taken with the others. Congratulations Labour another own goal and you convinced another 10,000 swinging voters to vote National

    • karol 8.1

      A lot of that is how it was introduced and reported – very biased coverage.

      It’s introduced and framed by the anchor’s opening statements, parroting John key’s dismissal of the report. Then the reporter does his best to dismiss the inquiry, focusing more on the (alleged) subtext as a government in waiting.

      It does show that Shearer et al have to be a lot smarter about getting their message across to the public. But if the MSM runs such interference between opposition parties and their messages, it’s a tough ask.

    • Rogue Trooper 8.2

      wotta load of rubbish. How is “they don’t even like each other” contain any substance of a rebuttal, when Key and Peters are hardly best-golfing buddies, and, and, (feck) “I can’t recall” what I was going to say now. Anyway, this push for “high-paying manufacturing jobs” is likely to be a challenge in this environment.

    • xtasy 8.3

      With the “pretty looking” media “talents” that do these days read and present the news on TV – and also on radio, most having no bloody clue about the contents of the report, let alone hands-on business or even manufacturing, they all just follow the head ram and parrot on what that one goes as “baah, baah, baah”!

      That is the MSM in general, I see and hear every day.

      And then they throw in some comments about certain “behaviour” or “body language” of politicians that were involved, and think this is “qualified” and “informed” reporting.

      The MSM are falling for Mr “Smile and Wave”, or “Mr Spray and Walk Away”, as Winston calls him, give overly much credit to the governments information and commentary spin-masters, and do no bloody reading and research themselves.

      Is it any wonder they treat this actually long, detailed and complex report with such contempt?

      Tomorrow will be another weather story hitting the news, before anything else, they were already today talking about snow storms and a cold spell, going to hit the country from Wednesday on. That is easy news, where nothing much needs to be done, just turn on the camera, show the floods, the snow and ice, the damage. Ask a few locals about who did what and what they feel, and bingo, you are a “competent” journo these days.

      Hollow cells between the ears are easy to penetrate. In one ear and out the other, I am a journalist, I went to journalism school, learned to make myself up and look real professional. Give me a mike and I go out there and talk to people. Weather, crime, celebs, sports, trivia and scandal, galore stuff so easy at the hands.

      I admit, a slack, mumbling, unconvincing Shearer to front the report does not help though.

    • tracey 8.4

      Does JK find the quantitative easing (or funny money as he calls it) of the US really hilarious and the result of hippies too?? Aren’t the Brits printing dosh too?

      • Melb 8.4.1

        QE is used to expand the money supply when Reserve Bank interest rates are 0% or near 0%.

        Ours aren’t.

  9. irascible 9

    I was impressed by KeY’s increasing stridency and incoherence when faced with researched evidence to demonstrate that he is the master of incompetence and lacks any credible business acumen either personally or among his cabinet.

  10. Rosetinted 10

    The NZ DOLLAR was 77c last week for a while – now it is up to 80 cents. The volatility has to be hedged against. That is an added problem for exporters trying to make some money in competitive overseas markets. While these rich creep speculators play volleyball with our currency, we are trying to be the little country that could, like that child’s story. Only we can’t.

    We were told a different story than what we experience. Probably it was always a wet dream anyway just put forward to glaze our eyes from the truth that there were never going to be the jobs for everyone. Women could go back to being domestic servants, living-in I suppose. Not a great life but not always bad. Men what would they do? Replace tractors on the farms, hand hoeing etc. Back to the future eh? The early 1900s is where we will land up, with the same regular recessions, and the country divided against itself and hoping for another Micky Savage to provide some humane system for society. The system and the alacrity with which the ideological RWNJs wiped all our tariffs and left us open to price attack at every level has demolished our standard of living and our hopes to make it as a modern, smart country providing modern jobs. That’s up to now.

    Maybe we can keep agitating for some new ideas, something that is better. We don’t want to go back to having demanding unions always wanting more money and going on strike to get it. Limited tension between employers and workers, with shared goals and rewards for experienced workers and bonuses for all in good years would be motivating. Worker shares, worker standards that result in fair treatment, safe workplaces and a limit on the desires and dreams of the unreasonable, the psychopathic business leaders. We must learn to strive and keep on as the Maoris have done. They achieved because they stood firm and drew a line in the sand and believed that they were in the right and just persevered.

    How can we encourage and hold onto successful businesses? One thing is to have local trusts that back local businesses that provide finance at affordable rates. The recent floods have washed away Anatoki Salmon which is a small freshwater salmon farm specialising in a superior (see google) … of the steep valleys of the Kahurangi National Park in Golden Bay, New Zealand.(Free fishing freshwater salmon in Nelson NZ at Anatoki Salmon in ..). http://www.anatokisalmon.co.nz/‎
    Will they be able to get going again? We need to maintain and support businesses that are beneficial to local areas. Financial support has to come from the people in the regions, with better governance than the South Canterbury Finance.

    • Rogue Trooper 10.1

      a comprehensive piece rosetinted; these slips, drier summers, more water in the atmosphere to come down, not surprising if this is another ‘new normal’; loved the times I spent in Motueka and the Golden Bay. We can learn a great deal from the resistance and resilience of tangata whenua in the face of the oppression.

      • Rosetinted 10.1.1

        Rogue T Thanks, of course there is much more than my points. There have been interesting interviews this morning on Radionz and news pieces about the government denying it all. And much has been said of the miasma from the GFC and 2008 collapse. That attitude equals in lack of understanding about the truth of the loss of manufacturing, to the Victorian belief that a miasma of bad smells were the cause of the spread of disease, once believed. The truth is that our economic model is rotten all right.

        Wikipedia I love you:
        The miasma theory (also called the miasmatic theory) held that diseases such as cholera, chlamydia or the Black Death were caused by a miasma (Μίασμα, ancient Greek: “pollution”), a noxious form of “bad air”. The theory held that the origin of epidemics was due to a miasma, emanating from rotting organic matter.

    • tracey 10.2

      last time the RBank announced it was selling dollars (under Labour) how long did the dollar drop for before it started climbing higher again? Anyone know?

  11. xtasy 11

    Extract from the report:

    From chapter 2:

    “Manufacturing in New Zealand: contemporary structure and background”

    “The Strategic Dimensions:

    Submissions frequently commented on the levels of support and encouragement received by the manufacturing sector in other economies. Examples were given – Germany, Scandinavia, Switzerland, for example – of economies in which modern, high value adding manufacturing was fostered. The German example illustrates this line of thinking.

    Germany generates from manufacturing nearly twice the proportion of GDP produced by New Zealand (about 24%). German manufacturing success in recent years has been based on the Mittelstand – small or medium-sized, often family-owned and run companies, operating at an appropriate scale in niches in which they deliver high-quality, high-price reliable technology snapped up especially by developing economies. These companies deliver not just the technology, but the associated services – training and maintenance, for example – and, often, packaged outcomes for the purchaser, not just the technology that contributes to those outcomes. This is the “servitisation” process, wherein a strong, modern manufacturing sector is sustained by its sophisticated integration with the delivery of associated services. Such a sector also requires strong traditions of R&D, high quality training, the effective use of industrial clusters, and modern work organisation practices.”

    (second and third last chapter under that sub-heading)

    For New Zealand to have a better performing, more productive and successful manufacturing sector, it will be a major challenge for any government to turn the present situation around.

    The report basically just lists in detail the very things that have been known for a long time.

    Only “hands on” policies by a committed government can steer a new course. Present government policies will merely lead to a continuation of low value added production for exports, limited production for domestic and perhaps Australian consumption, and thus necessitate intensification of agriculture, more extensive monoculture in forestry and what else there will be, causing much harm to the environment. Add mineral extraction, and NZ will remain a commodity supplier above all else.

    Labour, Greens, NZ First and Mana will have a lot to do, to package necessary measures in their policies. There are only 15 months til the next election! Yet the improvement of value added manufacturing of high end goods would be a project for a whole generation.

    • Arfamo 11.1

      We have got to stop the burdening of the young with the cost of their education. If we want them to commit themselves to a future or at least some of their future here if their skills are globally marketable. Which party is talking about that?

    • Rogue Trooper 11.2

      the human resources available.

    • tracey 11.3

      which markets are the main recipients of Germany’s manufacturing industry, anyone know?

  12. tsmithfield 12

    Below is the executive director of Manufacturing NZ, Catherine Beard. discussing the manufacturing plan put foward by the manufacturing enquiry (at approx 12.10). Notice she disses most of the ideas put forward as a result of the enquiry, and thinks most of the proposals will cause more problems than what they solve.

    Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

    Well, look here. Exporters sorting out their own problems without the help of the government. Who would have thought it!!

    • felix 12.1

      The government is not here to make your life better.

      – David Bennett MP

      ps the article you linked to ends with a summary that the high dollar is the main challenge facing exporters, and that only half expect profits to increase.

      • Rosetinted 12.1.1

        The government is not here to make your life better.
        – David Bennett MP

        Question – What is it supposed to do? Make people’s life worse?
        Or ignore people completely in favour of chasing after a mythical economic model.

        For those who don’t know, it is a comfort to know that David Bennett is National MP for Hamilton East. (You might have worried that he’s a Labour one.)
        This is what he has to say in Google’s heading :

        Hello and welcome to my website. As the MP for Hamilton East, it is a pleasure and privilege to represent the people of this remarkable electorate in Parliament.

        It sounds like they could reasonably expect him to make their life better – or some specially chosen people from his area who have been picked to receive special offers! (This is the sort of patter that people trying to sell you something might spout – it used to be the favourite of encyclopaedia salespeople – before computers.)

    • One Anonymous Knucklehead 12.2

      Exporters sorting out their own problems without the help of the government. Who would have thought it!

      Who would have thought it? Who would believe it? Are you saying that none of these companies (already beneficiaries of free education, the rule of law etc.) have ever gone through “official channels” to smooth the path when appropriate? Have they never taken advantage of the services MFaT provides? Uh huh.

      Plus what Felix said: that some are lucky enough to have room to manoeuvre does nothing for the rest.

      • Pete 12.2.1

        “You built a factory out there? Good for you. But I want to be clear: you moved your goods to market on the roads the rest of us paid for; you hired workers the rest of us paid to educate; you were safe in your factory because of police forces and fire forces that the rest of us paid for. You didn’t have to worry that marauding bands would come and seize everything at your factory, and hire someone to protect against this, because of the work the rest of us did.” – Elizabeth Warren

    • Colonial Viper 12.3

      Well, look here. Exporters sorting out their own problems without the help of the government. Who would have thought it!!

      You do realise that Governments has the power and authority to conduct negotiations and macro-economic policy that individual manufacturers cannot?

      Please tell me that you do realise that?

      Tell me, is the reason the dairy sector needs so much government help and support because they cannot sort out their own problems?

    • Rogue Trooper 12.4

      and here is some more Tory spin from The Herald editorial
      http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10891154

  13. Wayne (a different one) 13

    The “lefts” manufactured ‘Manufacturing Crisis’ – another own goal!

    Manufacturing has just hit a 9 year high, with commentators claiming it an outstanding result.

    In addition, you have consumer confidence at a 3 year high.

    What was being viewed as a pathetic political beat up by the left, is now becoming an absolute embarassment.

    You are going to have to do better guys, because what ever credibility you had (and that wasn’t much) is sliding down the dunny fast.

    This little debacle, just glaringly highlights the left’s economic ineptitude.

    • One Anonymous Knucklehead 13.1

      God you’re dim. Do you even check the lies you get spoon-fed?

      Sales (seasonally adjusted) for the March 2013 quarter compared with the December 2012 quarter.
      Volumes
      Total manufacturing fell 0.6 percent.
      Excluding meat and dairy product manufacturing, sales fell 0.8 percent.
      Meat and dairy product manufacturing rose 0.5 percent.
      Values
      Total manufacturing rose 0.2 percent.
      Excluding meat and dairy product manufacturing, sales fell 0.7 percent.
      Meat and dairy product manufacturing rose 1.5 percent.

      Source, and here’s a picture.

      • Colonial Viper 13.1.1

        It seems that Wayne’s claim of a “high” is nothing more than him being “high”.

        Oddly enough Wayne seems to be ignoring the opinion and families of hundreds of thousands of NZers whose families have lost manufacturing jobs over the last 10 years – years governed by both Labour and National, I should add.

        Wayne, do you really have no ideas for how to improve manufacturing in NZ?

        How did the decision to outsource NZ trains to shoddy Chinese ones work out for you mate?

        • Wayne (a different one) 13.1.1.1

          Okay, sorry I now get it – silly of me really.

          What you want is “subsidised employment” and a controlled economy – in other words ‘Communism’

          Words fail me – guys those regimes failed and fell over decades ago – don’t you get it?

          Accept we can’t compete against “low based wage” economies – aka Asia.

          • Bunji 13.1.1.1.1

            What you want is “subsidised employment” and a controlled economy – in other words ‘Communism’
            Yeah, that’s exactly what everyone is saying…

            What manufacturers are screaming out for is a level playing field. Y’know, the thing you righties go on about, but don’t really understand.
            It’s 39 years since we had a current account surplus – clearly there is something wrong with our exchange rate, and the policy settings that influence it, if it’s been overvalued for nearly 40 years.
            We’ve now passed Greece to have the worst current account deficit in the entire OECD. That’s Bill’s “rebalancing” for you.

            Procurement? It makes sense to take in to account the full costs – lost taxes, increased unemployment benefits etc of buying overseas. Hell, with the trains, the government wouldn’t even let Hillside put a bid in, so keen were they on buying sub-standard Chinese ones that need re-work. Great value.
            This government’s myopia is incredible.

          • framu 13.1.1.1.2

            “Words fail me”

            yes quite – “thinking” also seems to fail you on a regular basis as well

          • One Anonymous Knucklehead 13.1.1.1.3

            Seriously? Can’t you do better than a feeble strawman argument? You poor sod.

            Arguing for a high wage economy then voting for the party that would love to see wages fall seems like idiocy to me.

          • tracey 13.1.1.1.4

            Do you get that when the stock market crashed in 87 and the banks collapsed in 2007/2008 that was capitalism failing and all that stopped it falling was the cronyism and “lobby groups” taking ordinary people’s hard earned taxes (via the Govts) and propping up the megaliths which are usually back in profit pretty quickly.

            Didn’t Bill and John Key suggest we could try? Bill said us having low wages compared to Aussie was an advantage.

      • Rob 13.1.2

        Knucklehead I would be careful as the June quater is going to be good.

    • tracey 13.2

      you do know that “consumer confidence” means people are or will spend more… I remember when private debt was a problem in this country. Oh hang, on wait a minute…. it still is.

      Bunji

      “We’ve now passed Greece to have the worst current account deficit in the entire OECD. ” source?

  14. xtasy 14

    The so far best media coverage of this report was on Radio NZ National this morning on Nine to Noon! “Manufacturing: The new Consensus”, was the title.

    Kathryn Ryan did talk with Professor Nigel Hayworth (author of the multi party report) about details, which can be listened to via the following audio links:

    http://www.radionz.co.nz/national/programmes/ninetonoon/audio/2559021/manufacturing-the-new-consensus.asx

    http://www.radionz.co.nz/audio

    Another interesting conversation between K. Ryan and P. Smellie is also worth listening to:

    http://www.radionz.co.nz/national/programmes/ninetonoon/audio/2559030/business-with-patrick-smellie.asx

      • Te Reo Putake 14.1.1

        “indeed this is worth a read also”

        Or not. What a muppet this Mike chap is. Is he that isolated from his audience that he can’t spot the bleeding obvious?

        • James 14.1.1.1

          Oh – the standard “Standard” response – he must be an idiot – I dont agree with him approach.

          • Te Reo Putake 14.1.1.1.1

            I didn’t say he was an idiot, James. I said he appeared isolated from the lives of his audience. And the comments from the others in response seem to prove my point, showing him to just be a paid shill for big business and the NACT government, with no understanding of what is really happening to people who aren’t on 6 figure salaries.

          • xtasy 14.1.1.1.2

            Read my comments below, James, if anyone has made an own goal, it was you!

            As for Hosking and some other “media personalities”, since Holmes set the course, and others followed, it appears that we have fewer actual “journalists”.

            Now the ones with profile, status, high salaries, and almost celebrity status prefer to call themselves “broadcasters”, as then they cannot be held accountable to adhere to objectivity and neutrality, like decent, professional journalists would.

            Money talks, like flash cars, perks here and there, and licking boots of Prime Ministers and so becomes the acceptable, “respectful” activity of such “commentators”, “bored-casters” or whatever you may call them.

        • xtasy 14.1.1.2

          A bit more on Mike Hosking – the supposed “economic” expert speaking supposedly “competently” and pretentiously “independently” on the manufacturing report authored by a professor working at Auckland Uni in the business school there, as far as I remember.

          http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=10862709

          Mike Hosking has made career as nothing much else but a common journalist, fronting radio and television show of mediocre quality, filling in on shows and for some time having sold his soul to very commercially focused, sell more ads by the minute kind of, 1ZB.

          He has become very cosy with John Key, and the NZ Herald article the link above leads to shows it.

          So what research and other skills has he displayed in his job? Where is his experience in economic matters?

          As he does not like the report, and is a supporter of Key and Co, he naturally will rubbish it. Big deal, and great wonder and revelation!

      • xtasy 14.1.2

        “Editorial” by one of John Key’s “masters of ceremonies”, right!

        http://en.wikipedia.org/wiki/Mike_Hosking

        Extract from Wikipedia entry on Mike Hosking:

        “Personal life[edit]

        Hosking is married to fellow broadcaster Kate Hawkesby, and together they have six children.

        In 2013, he was the master of ceremonies at Prime Minister John Key’s state of the nation speech, which he also endorsed.[1]
        References[edit]”

        “^ John Drinnan (2013-02-01). “Hosking plugs car and Key”. New Zealand Herald.”

        Go and get a life James, and what about telling us about your supposedly great company, where you treat all your staff as celebrities on a corporate funded junket to a tax free tropical paradise? I asked you days ago in another thread, tell us the name of your “business”, in which you claim to have no union representation and have only happy workers, all earning heaps:

        http://thestandard.org.nz/workers-rights-under-attack/
        (see 2.1.1.5 and 2.1.1.5.1)

        Get honest, and what I just mention above shows why this government is getting such an endless honeymoon by most of the media persons, as they are as much as in John Key’s and National’s or ACT’s pocket, as one can be!

        Fuck the NZ MSM and Mike F***ing Hosking!!!

        • James 14.1.2.1

          Fuck the NZ MSM and Mike F***ing Hosking!!! …. and dont forget a “Fuck You”

          as for your demands / request for information about my company – yeah right !!!

          Why should I put my company in the eyes of people like yourself who are (as my kid would say) Haters.

          You are a faceless person on the internet – Im not responsible or accountable to you – regardless of what you think.

          As for ” company, where you treat all your staff as celebrities on a corporate funded junket to a tax free tropical paradise? I asked you days ago in another thread, tell us the name of your “business”, in which you claim to have no union representation and have only happy workers, all earning heaps:”

          A lot of hyperbole in your comment – but yes – I treat them well, and they are all paid well without union membership – this may come as a huge shock to you – but there are thousands of businesses out there just like mine.

          And For the record – I dont believe I said earning “heaps” – Im not a 1980’s banker – But they are paid well – over minimum wage in all roles.

          [lprent: The point that x was making was that you as a “faceless” union basher and “hater” on the internet can’t rely on a asserted facts without support.

          It translates as complete lying bullshit when a handle like yours has garnered no significant credibility and you cannot point to *any* backing evidence. In fact you made another assertion in this comment without bothering to put in any support for it (and it isn’t hard – I could have done it with a few clicks).

          In other words I find you about as credible as any other obvious clown on the net lying about their dick size and other similar matters like your assertions. Because when pressed they usually either try to do one of three things..

          1. attack the person requesting verification (ie your technique)
          2. attempt to divert and restructure what they argued
          3. ignore the question

          Of these only the third is safe to do around the moderators. The best idea is not to use asserted facts unless you are in a position to either support it *or* you offer it as your opinion.

          A two week educational ban for being unable to support your asserted facts lies (because that is how they are now perceived). ]

          • xtasy 14.1.2.1.1

            Hah – please yourself, I do not believe your story about your “company” and your staff. It just all sounds too cloud 9 sort of stuff to me.

            Also I have heard some other employers boast themselves about how great they were, and how much they did for their staff.

            Once I could speak with the same staff while the boss was away, they had rather different stories to tell.

            Good luck with your agenda, but when delivering a Hosking “editorial” here to use as supposed competent comment, prepare for that to be taken to pieces.

          • xtasy 14.1.2.1.2

            “But they are paid well – over minimum wage in all roles.”

            Thanks, so that is $ 13.80 per hour and above, as far as I know.

          • Rogue Trooper 14.1.2.1.3

            “faceless” in the mirror. that was interesting timing Lynn, I only just read that fool’s comment; at the ‘minimum’ readers know who ‘we’ are. ffs. need new locknuts.
            btw, filing down, or stringing the Trooper along…

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