Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Export led recovery – maybe not

9 October 2008

Export led recovery – maybe not

The New Zealand Manufacturers and Exporters Association (NZMEA) say that National’s tax package is set to severely impact the real (tradable) economy in New Zealand. Scrapping the R&D tax credit will drive our existing innovators offshore and stymie the development of new opportunities.

NZMEA Chief Executive John Walley says, “As we watch the global meltdown of the financial system, we look to our real economy to take up the slack. At this point in the business cycle we look to our exporters to lead the recovery. Instead of supporting the recovery, this policy kicks the tradeable economy in the teeth. We have received a huge amount of angry comment on this issue, but I guess the political calculation is that exporters don’t have many votes so they don’t matter.”

“Our members are saying that they stand to lose significant investment capital if the R&D credit is removed. Many of them have already started to invest in R&D projects and report that this change will eat into margins and prevent further R&D investment. We have also received feedback from overseas businesses intending to carry out R&D projects in New Zealand that removing the tax credit would see them consider cancelling these plans.”

Colin McKenzie from Salcom Technologies said, “Once again it appears that Ministers of the Crown are going to demonstrate their ignorance of how the real economy actually functions in a competitive world, but blithely talk about ‘business growth” with, it appears, little concept of how that is going to be achieved, and consequently raise the taxes they need to meet their promises.” This reflected the sentiment from those involved in the tradeable economy.

“There has been much talk from National about cutting bureaucracy costs to free up funding, but these cuts have come straight from the pockets of our existing and potential innovative exporters. The tax package simply offers a carrot to voters at the cost of our long-term economic success.”

Members of the New Zealand Manufacturers and Exporters Association make nearly $2.0 billion in sales and have an export value of around $1.0 billion. Our organisation can trace its existence back to the early history of New Zealand.

As a legacy of the hard work and careful financial management of the past, we have a significant asset base that enables our independence and extends our activity. Subscriptions fund only a very small part of our current operating costs.

Membership is open to all manufacturers and exporters and others at the discretion of our Council. Enquiries should be directed to


© Scoop Media

Business Headlines | Sci-Tech Headlines


Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>