Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Rock-star economy unplugged by China log jam

Rock-star economy unplugged by China log jam


The collapse of log prices due to oversupply in China threatens to wash the gloss off what remains of National's so-called rock-star economy, says Labour Leader David Cunliffe.

“Already this year the price of milk solids has plunged by more than 40 per cent. Now the price of raw logs has halved in the past six months, highlighting the risk of exporting so much unprocessed timber.

“Almost half the value has been knocked off our expected future milk and wood export receipts in the last few months and that spells economic gloom.

“The timber industry has already lost 500 jobs in the past few months and thousands more are at risk. Our regions will continue to suffer. The knock-on effects will be felt from our rural centres to our cities.

“New Zealanders who already face rising power bills, rising rents and mortgages, rising costs of basics, and static or declining real-term wages, were told by the Government good times were just around the corner. But now they face a terrible hangover without having been to the party.

“Under this National Government more than 600,000 hectares of forestry land has been approved for sale to overseas interests. And instead of processing timber here – keeping local sawmills open, Kiwis in jobs, and adding value to wood products – we are now exporting more than half our logs as raw product. We are then re-importing dressed timber to rebuild Christchurch.

“That is not rock-star economics.

“Labour’s forestry policy will encourage the journey from volume to value in wood products – through tax deferral, R&D tax credits, security of supply, monetary policy to keep interest rates and the New Zealand dollar lower for longer, and a government pro-wood policy.

“We will reinvest in the regions with a $200 million infrastructure development fund.

“Through industry, investment and innovation, we will encourage the development of a diversified, modern, high-value economy – so that when commodity prices fall and the earthquake insurance checks are spent, our children will still have a future.

“National’s foolhardy, short-term approach – to bet the farm and the forest, or worse, sell it – threatens all our futures. A Labour government I lead will not let that happen,'' David Cunliffe says.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Transport: Auckland Looks To Light Rail

The Board of Auckland Transport has called for an investigation into a light rail network, which could relieve traffic congestion on some of the region’s busiest roads.

This stems from work in 2012 (the City Centre Future Access study) which responded to a government request to develop a robust and achievable solution for access to the CBD.

That showed that the City Rail Link, together with surface bus improvement, provided the best regional solution. However, it also identified that the city centre is already facing serious congestion across all major road entry points which, if not addressed now, will worsen. More>>

 

RMA: Smith's Claims Don't Match Evidence - Greens

The Motu group’s research into the impacts of planning rules looked at the costs related to housing development but not the benefits of environmental protections and does not recommend significant changes to the RMA to reduce the cost of new house builds. More>>

ALSO:

Gordon Campbell: On The Similarities Between John Key And David Cameron

For years now, David Cameron has been the closest available thing to a mentor/analogue to our Prime Minister, such that Key watchers could be interested in an analysis of Cameron that appeared in the British press over the Christmas break. More>>

Gordon Campbell: On Ian Fletcher Resignation & GCSB’s New Role

It may well be that after being shoulder-tapped in Queensland for the GCSB job, three years of living in Wellington has been enough for Fletcher and his family, given that the pending review of the GCSB would have required an even longer commitment from him. Three years of Wellington’s weather is enough for anyone... More>>

ALSO:

Ian Apperley: $10m Or $100m For New Wellington Council IT System?

I feel a Tui Billboard coming on. I commented the other day that it looked like the Council’s Ninth big project was a potential $100 million plus... The Mayor has responded: “I am reassured by the Chief Executive and by Anthony Wilson that the proposed budget is in the region of $10 million.” More>>

ALSO:

Southern Ocean:
Navy Intercepts Illegal Fishing Vessels

Foreign Minister Murray McCully today put illegal fishing vessels operating in the Southern Ocean on notice and vowed to take action against their owners. “As part of a multi-agency operation, the HMNZS WELLINGTON has intercepted two vessels claiming to be flagged to Equatorial Guinea, fishing illegally in the Southern Ocean.” Mr McCully says. More>>

ALSO:

Kiwi Pride: New Zealand Takes UN Security Council Seat

“New Zealand’s term on the Security Council will place us at the heart of international decision-making for the next two years,” Mr McCully says. More>>

Greens: CAA Airport Door Report Conflicts With Brownlee’s Claims

The heavily redacted report into the incident shows conflicting versions of events as told by Gerry Brownlee and the Christchurch airport security staff. The report disputes Brownlee’s claim that he was allowed through, and states that he instead pushed his way through. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news