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

 


Canterbury rebuild to stoke manufacturing, Wheeler says

Canterbury rebuild will rouse sleeping manufacturing sector, Wheeler says

By Paul McBeth

Nov. 28 (BusinessDesk) - The $30 billion rebuild of New Zealand's second-biggest city should help revive a lagging domestic manufacturing sector, which is typically linked to the construction industry, according to Reserve Bank governor Graeme Wheeler.

New Zealand's manufacturing output is about 9 percent lower than before the global financial crisis, much of which has come from tepid investment in construction which has sapped the domestic side of the sector, Wheeler told Parliament's finance and expenditure committee in Wellington.

That should get a kickstart as the Canterbury rebuild comes underway, which will foster investment intentions in the construction sector.

"The reconstruction of Canterbury, the investment likely to take place is more than $30 billion and spread out over several years of course, but one would expect that would be a very positive affect for manufacturing," Wheeler said.

"The main output effects for the manufacturing sector have been on the domestic sector - a lot of it has been linked to the significant decline in investment taking place, particularly residential investment in recent years," he said.

New Zealand's manufacturing activity expanded last month, having spent the five previous months shrinking, according to the BNZ-Business New Zealand performance of manufacturing index. The sector has been hit a number of high-profile job losses, the latest being Carter Holt Harvey's decision to lay off 70 staff at its Rotorua and Tokoroa plants.

That's sparked Opposition political parties to launch a parliamentary inquiry into the sector's woes outside the usual select committee process, which will be chaired by Manufacturers and Exporters Association past-president Cameron Moore.

"Any sort of ongoing decline of any sector is a concern. You would want to really analyse it carefully and see what lies behind it and whether there are policy judgements that need to be rethought," Wheeler said.

New Zealand's strong currency, which recently traded at 82.02 US cents, has been cited by manufacturers as the major reason for job losses.

Wheeler said manufacturers have been affected by the strong currency in the past three years, but "you've still seen exports grow in volume terms of the order of about 3 percent per annum."

Wheeler was appearing in front of committee for the Reserve Bank's annual report, and will face politicians next week for his monetary policy statement.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news