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

 

Gordon Campbell: On Bank Scandals (And Air Crashes)

Last month, the Australian Securities and Investment Commission (ASIC) filed proceedings against Westpac over activities that have some distinct echoes of the Libor scandal. More>>

Budget: Health Funding Must Keep Up With Need

NZNO: “The nursing team has been doing more with less for years. It’s getting to the point that we’re really worried about our colleagues, our patients, our jobs and the level of health care available for people in our country." More>>

ALSO:

Emissions Inventory: Time For The Government To Do The Right Thing

It’s time for the National Government to step up and do the right thing to reduce climate pollution as data shows New Zealand’s greenhouse gas emissions are higher than ever, the Green Party said today. More>>

ALSO:

Budget 2016: More Partnership Schools To Open

Seven new schools will join the eight Partnership Schools already open, along with further new schools opening in 2017. “The growth of this policy is a reflection of the high level of interest from educators and community leaders,” Mr Seymour says. More>>

ALSO:

No Correspondence With English: Did Brownlee Make Up Sale Of Navy Ships ‘On The Hoof?’

Having revealed that several Royal New Zealand Navy vessels have not left port in years, New Zealand First is now asking the Minister of Defence to prove he did not come up with the idea of selling HMNZS Taupo and Pukaki until the media asked him. More>>

Housing Plans: Labour- Abolish Auckland Urban Boundary
The Government should rule out any possibility of an urban growth boundary in Auckland Council’s Unitary Plan if it is serious about fixing the housing crisis. More>>
Greens - State House Solution
The Homes Not Cars policy allows Housing New Zealand to retain its dividend and, in addition, would refund its tax, to spend on the emergency building of around 450 new state houses. More>>

ALSO:

Houses And Taxes: Post-Cabinet, Pre-Budget Press Conference

The Prime Minister said that the pre-budget announcements showed that his Government is “investing in a growing economy”. He re-affirmed the National Government’s commitment to lowering personal tax rates but that any such change must fit with the fiscal reality of the time. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news