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Manufacturing policy makes sense but....

Manufacturing policy makes sense; short on some important detail

On the surface much of Labour's prescription for manufacturing is sound though questions remain over some of the detail not yet announced, the Employers and Manufacturers Association says.

"The Economic Upgrade for manufacturing proposed by Labour in essence makes good sense," said EMA chief executive Kim Campbell.

"But we haven't yet seen all the grainy detail.

"Overall the goal of the investment policy is laudable though business is wary of a capital gains tax since it could act as a brake on the supply of new housing.

"The policy to introduce a 12.5 per cent tax credit for R&D would assist as it at least matches Australia's.

"Business would certainly welcome a more proactive government procurement policy and especially to ensure overseas purchases always met New Zealand Standards.

"Backing the regions is also sound public policy.

"However it is unclear what is proposed to change the rules on foreign direct investment to favour investment in New Zealand manufacturing.

"Likewise, the objective of freeing up capital for manufacturing is fine but we don't yet know what is being suggested.

"Overall Labour's policies for manufacturing are largely encouraging but some of the important detail has still to come to light."

Ends

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