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

 


Scale up or Die

Friday 16 November 2012


Scale up or Die


Today we're launching a new report Lifting Export Performance, carried out for ExportNZ by the New Zealand Institute of Economic Research. It shines a light on what is holding New Zealand back, the effectiveness of export policies, and how best to move forward.

It's a sobering reality check on the state of the nation’s export performance and how vital it is to get the policy framework right.

The main focus is addressing New Zealand’s big issues – its smallness and isolation.

One of the obvious ways to overcome these problems is to make New Zealand a bigger country with bigger companies.

Once grown, the challenge is then keeping companies of scale in New Zealand so the country benefits from them. The alternative is selling out to other countries and losing talent overseas for better jobs and better pay.

The report outlines a variety of issues New Zealand policymakers and firms need to address now and into the future.


Key points:

Download the report [1.3MB]


• The government is already doing a lot to support export capability. We need to assess the effectiveness of existing policies and programmes before throwing more money at the problem. Let’s aim to do a few things really well rather than spreading the capability spending too thinly.

• Part of the reason for the high exchange rate is that growth in government social spending tends to favour domestic consumption instead of saving and investment. On-going efforts to cut less vital spending like Working for Families and interest-free student loans will ease the pressure on the Kiwi dollar.

• Public spending has acted like a tax on the export sector. During the 2000s the Government administration share of GDP grew by 60%, driving up the demand for labour and sucking resources away from businesses that were already struggling to grow.

• New Zealand needs to hold a serious debate about its optimal population. NZIER is on the record as saying that 15 million by 2060 would be a good start.

• There is merit in investigating policies to reward high-performing firms that retain capability in New Zealand rather than move offshore.

• Regulatory risks around the primary sector won’t go away: New Zealand primary exporters need to front-foot these issues so that unnecessarily draconian policies aren’t imposed upon them that would restrict their efforts to grow and export.

• New sources of scale could come from the minerals sector and Māori-owned businesses.

• Smaller New Zealand companies need to collaborate onshore to compete offshore.

I look forward to working with all stakeholders to use this report’s findings to help develop New Zealand into a bigger, more successful exporting nation; better able to offer interesting and competitively paid jobs to future generations.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news