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Serious warning signs for manufacturing

Warren Kyd
National Manufacturing Spokesperson

Tuesday 18 July 2000

Serious warning signs for manufacturing

The Government must sit up and take notice of the serious warning signs from the manufacturing sector contained in today's quarterly survey of manufacturers' opinion, National's Manufacturing spokesperson Warren Kyd said today.

"The worries from manufacturers are not just a beat-up. They are reporting fundamental issues of concern affecting their bottom lines and prospects for jobs.

"The WestpacTrust quarterly survey of manufacturers opinion prepared for the Manfufacturers Federation by the NZIER shows the Government's policy direction and rising input costs are producing a volatile mix.

"The slow activity in the domestic economy means manufacturers can't pass on rising prices. That means profits are squeezed and that means investment plans suffer and so do job prospects.

"The only bright spot is that export intentions are still strong - but given that two thirds of the manufacturing sector is dependent on the domestic economy the outlook is bleak.

"The Government must take much of the blame for this - policies like the Employment Relations Bill, higher taxes, re-nationalisation of ACC and their impact on the exchange rate will continue to have a dramatic impact on the outlook for the sector."

Ends

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