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


Let's Not Talk The Economy Down

11 March 2005
Media Release

Let’s Not Talk The Economy Down

Most businesses are resilient and won’t be put under by one interest rate call, a union wage rise campaign and the pressures of the “high” dollar.

“This is because in the last five years, businesses have toughened up to operate with less dependence on what the Government and other outside controlling agencies like the Reserve Bank may or may not do,” suggests Auckland Chamber of Commerce chief executive Michael Barnett.

At the same time, with a basket of big pressures coming on the economy together – that’s a signal for both business and Government leaders to take stock of their situation and make adjustments.

For businesses keen to protect markets and grow:
- They have no choice over factoring in fuel rises, the $, interest rates, local government costs, taxes….
- But they can adjust prices, wages, staff turnover and growth plans.

“Smart businesses will adjust their operating plans to the realities of the business cycle – most will survive. Many will stay growth-focused.”

For a government keen to promote a growth-led economy:
- They need to be careful they don’t create the anti-thesis of their desire for more growth and higher productivity.
- A thriving economy means businesses and people in jobs generate the tax revenue needed for social services and infrastructure – everything from a better health system to better roads and public transport.

“A smart government will take notice of the Reserve Bank’s warning that inflationary pressures remain ‘in the system’ and that further interest rate rises cannot be ruled out.

“Clearly, big rises in public sector wages like the recent 7% nurses’ settlement, and big leaps in local government rates recently signalled will fuel inflation,” warns Mr Barnett.

“Some smart Government leadership may be needed to encourage local government to keep rate rises in check and public sector and union-led wage claims within inflation-productivity guidelines….


© 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