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Labour’s Economic Upgrade for manufacturing

Labour’s Economic Upgrade for manufacturing

Labour Leader David Cunliffe has today announced his Economic Upgrade for the manufacturing sector – a plan that will create better jobs and higher wages.

“Manufacturing is crucial to the Economic Upgrade New Zealand desperately needs. Labour’s Manufacturing Upgrade will focus on the three ‘I’s of Investment, Innovation and Industry,” says David Cunliffe.

“To boost Investment Labour will provide tax deferrals to companies in advanced manufacturing, as well as in wood processing, which invest in new technology. We will roll this out to other parts of the sector, as it can be afforded. We will also introduce a capital gains tax to get investment into productive businesses rather than the housing sector.

“Our upgrade of monetary policy, which will be announced by David Parker at the end of this month, will help reduce the volatility of our overvalued dollar and help boost exports.

“To increase Innovation Labour will introduce research and development tax credits for all sectors.

“To support Industry Labour’s Buy Kiwi Made policy will set a target of keeping another $200 million a year of government contracting at home rather than sending that work overseas. This will create around 2000 jobs.

“This Government’s attitude to procurement is cheapest is best, even if overseas companies win the contracts. The repeated failures of the KiwiRail wagons shows how wrong they are. Kiwi manufacturers are among the best in the world and deserve a level playing field for procurement contracts.

“The Parliamentary Report into Manufacturing last year set out the blueprint for better jobs and higher wages in the sector. Labour will act on all the recommendations in that report as part of its Economic Upgrade for the manufacturing sector,” David Cunliffe says.

Ends

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