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


Complacency must not be an option

6 December 2007.

Complacency must not be an option.

The New Zealand Manufacturers and Exporters Association, (MEA), says that the RBNZ’s decision to hold the OCR, no change along with hard words, is not an excuse for the Government and the select committee on monetary policy to sidestep the issues driving the two economies outcome in New Zealand.

”Any expectation that things are somehow coming right should not throw a shadow of complacency over the deliberations of the select committee on monetary policy”, says Chief Executive John Walley.

“Although the MPS alluded to cooling house prices, the statement made it clear that the domestic economy continues to push back against higher interest rates and the key message for exporters is that the RBNZ expects interest rates to remain around current levels for a long time”.

“This is a major concern as strong exchange rates continue to damage the tradable sector and our capacity to export”, says Mr. Walley.

“The point in the future when we expect the domestic sector to start cooling and the RBNZ will start to talk about loosening interest rates seems a long way off today. A number of changes, including those which some might see as radical, are desperately needed on the part of the Government to help curb inflationary pressure”.

Mr. Walley says that the MEA will continue to press Government to act decisively in support of the tradable sector because the ‘business as usual’ attitude is what is driving the two economy problem, and therefore cannot be expected to fix it.

“This issues currently before select committee must not be allowed to fade away in the summer haze or some pre-election slight of hand. A “business as usual” answer from the Government or a vanishing act from the select committee will be a disaster for our exporters, and in the longer term, for our entire economy”.

(For further information see MEA Outlook report:

MEA – the authentic and independent voice for manufacturers and exporters.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Real Estate: Foreign Buyers Ban Passes Third Reading

The Bill to put in place the Government’s policy of banning overseas buyers of existing homes has passed its third and final reading in the House. More>>


Nine Merger: Fairfax Slashes Value Of NZ Business

Fairfax Media Group more than halved the value of its Kiwi assets, attaching just A$40 million to mastheads that were once the core of a billion dollar investment. More>>

Collecting Scalpers: Commerce Commission To Sue Viagogo

The Commission will claim that Viagogo made false or misleading representations: • that it was an “official” seller, when it was not • that tickets were limited or about to sell out • that consumers were “guaranteed” to receive valid tickets for their event • about the price of tickets... More>>


Price Of Cheese: Fonterra CEO Goes Early After Milk Price Trimmed

Aug. 15 (BusinessDesk) - Fonterra Cooperative Group chief executive Theo Spierings is leaving the role early after the world's biggest dairy exporter lowered its farmgate payout and trimmed its dividend to retain cash. More>>