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Give Exporters A Break

20 February 2008

Give Exporters A Break

The dollar breaking through the eighty cent mark against the US dollar again overnight is more bad news for exporters, says New Zealand First’s economic development spokesperson Doug Woolerton.

“The high dollar and high interest rates mean exporters are being hampered at home by poorly designed monetary policy when they should be putting their energies into competing in the markets overseas.

“A recent report on Export Year 2007 highlighted the government’s desire to strengthen export performance by creating a supportive policy environment. This should be one of the government’s highest priorities, as New Zealand’s exports of goods and services have remained at around 30 per cent of GDP since the 1980s.

“The best place to start would be a long overdue look at monetary policy and tax incentives. The high dollar and high interest rates ensure that export performance remains stunted by the Reserve Bank Act. And tax incentives for new exporters are a must.

“If the government really wants to pump up the export sector, as they say, they should take a fresh look at monetary policy and taxes on exporters,” concluded Mr Woolerton.


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