Spending On Sending Businesses Offshore Flawed

Spending on sending businesses offshore flawed

The Government effort announced today to encourage business investment offshore is an admission it has failed to create a sound business environment in New Zealand, the Employers & Manufacturers Association (Northern) says.

"If our businesses were sufficiently profitable they would be investing much more, both locally and offshore," said EMA chief executive, Alasdair Thompson.

"We are keen to see our businesses invest abroad, and they will do so when there is a sound business case for it.

"Since our business environment is not sufficiently attractive to local or overseas investment, the government now plans to use taxpayers' funds to help our firms invest overseas.

"It's a cop out.

"New Zealand's future standards of living require far more than the returns on offer from farming and tourism.

"We need to hang onto the capacity and tradition of developing specialised, highly paid skills for producing high value, niche manufactured products.

"Finland and Ireland did not get rich by sending their manufacturers offshore, though their continued wealth may depend to some extent on it. The fact that Japan and Germany manufacture high value cars for world markets and pay their employees three times more than our manufacturers can afford underlines the fundamental flaws in our business environment.

"Mr Mallard's message gives all the wrong signals."

ENDS

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