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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news