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

 


Report shines a light on how to move forward

Report shines a light on how to move forward

A new report Lifting Export Performance, carried out by the New Zealand Institute of Economic Research (NZIER) on behalf of ExportNZ, is shining a light on what is holding New Zealand back, the effectiveness of export policies, and how best to move forward.

ExportNZ Executive Director Catherine Beard says the report is a sobering reality check on the state of the nation’s export performance and how vital it is to get the policy framework right.

“This report focuses on addressing New Zealand’s big issues – its smallness and isolation. One of the obvious ways to overcome these problems is to make NZ a bigger country with bigger companies. We need a national debate on population policy and how big we should be by 2060.

“You can’t fake scale. We need to grow the population through immigration and build companies of scale. Once grown, the challenge is then keeping these companies 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.

“How do we keep successful companies of scale in NZ? The report outlines a variety of issues New Zealand policymakers and firms need to address now and into the future”.

NZIER Deputy Chief Executive John Ballingall says “Boosting our exports requires first-rate policy settings and creative, collaborative actions from New Zealand firms. There is no silver bullet, and a medium- to long-term perspective is required. We need to ensure existing capability-enhancing policies are delivering value for money. Our immigration, tax, welfare and foreign investment policies need to enhance rather than restrict the ability of New Zealand firms to gain scale. And we need to see more examples of firms working together in strategic alliances to build presence offshore.”

Key points from the report:

· 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.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news