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Manufacturing potential miles off being realised

Warren Kyd National Manufacturing and Small Business Spokesperson

12 December 2000

Manufacturing potential miles off being realised

New Zealand's manufacturing sector is experiencing a strong tail wind, yet the latest manufacturing survey shows we're still miles off producing our potential, National Manufacturing and Small Business spokesperson Warren Kyd said today.

"The country is currently experiencing very favourable terms of trade yet the volume of manufacturing sales for the September quarter fell flat

Although export prices rose for the quarter, export volumes actually fell (down 2.1%), as did import volumes (down 1.3%). Notably, exports of non-food manufactures dropped 7%.

"Manufacturers have an enormous opportunity when one considers the trade conditions, but they are being hamstrung from within. Government policies like its controversial ACC and Employment legislation are slowing manufacturers down considerably."

The Statistics New Zealand's Economic Survey for the September 2000 quarter also revealed the prices for imported consumer goods, excluding fuel and cars, rose 4.6% during the quarter - up 8.6% for the year.

"Unfortunately consumers can expect a more expensive Christmas, and higher inflation in the New Year," said Mr Kyd.

Ends

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