Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Interlock – another one bites the dust

9 February 2005

Interlock – another one bites the dust

Interlock – yet another New Zealand manufacturing icon bites the dust.

The Interlock withdrawal from Wellington shares many of the characteristics of the withdrawal of Electrolux from Christchurch. Foreign ownership, foreign decision making, operational rationalisation and significant price pressure brought on by globalisation.

The Government rush to implement preferential trade agreements with Asia is driven by the desire to open markets to the New Zealand Primary sector. At the same time the Government is lifting the cost base of employment throughout New Zealand.

The impact of these changes sits most heavily on small locally owned manufacturing companies. Without any clear policy support for manufacturing the conclusion must be that Government has little interest in growth for the high value manufacturing sector in New Zealand.

Many countries have direct and significant support for research and development, have much more supportive depreciation rules for investment in productive equipment and better support their innovative, locally owned, small to medium sized companies than does New Zealand.

Some believe that this issue is becoming critical; the slow erosion of the manufacturing base may well be at the point where we start to lose the vital infrastructure that supports our manufacturing exporters. If that happens the decline in our manufacturing sector will accelerate quickly.

The issue is not really about trade barriers or even preferential trade agreements. In manufacturing trade barriers have been negligible for a long time. It is really about the dynamics of global competition.

Without any particular interest in New Zealand, international decisions will be driven by price only thinking.

Our salvation in this new world will be based on competitive activity with an interest in New Zealand; primary without doubt – the grass grows here; tourism absolutely – the sights are here.

More than any other, the presence of a manufacturing sector is policy driven. If we want a manufacturing sector we had better get policy behind our locally owned, innovative and productive manufacturers.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>


Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news