4%+ Growth Possible only with Direction

24 May 2002

The Canterbury Manufacturers’ Association CEO, John Walley, is encouraged by the government’s recognition of the need for sustainable growth. “Some support for growth drivers are there in the details but they need elevation to the headlines – prudence and business as usual will not win in the accelerating growth game,” he said.

This has not been a spendthrift Budget. The present windfall surplus has sensibly not been spent on the basis that good commodity prices and favorable growing conditions don’t last forever. Some investments are in evidence – education, apprenticeships, and increases in Research and Development support. However the headlines still focus on consumption, propping up our aspirations. We have to make it before we can spend it – without real and sustainable 4%+ growth rate we simply will not be able to pay for what we think we should have.

“If we want a first world economy 3% growth won’t cut it,” said Mr Walley. “What we need is 4%+ growth and the only way to get this is by growing the value added sectors of the economy, and invest in putting the knowledge wave to work in the manufacturing sector where the highest value export dollars are earned.”

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