Exporting raw materials the path to poverty

Exporting raw materials the path to poverty - 23 August

New Zealand Winegrowers have hit the mark with their comments that the high NZ dollar is costing jobs say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZ Winegrowers Chairman Stuart Smith said, “We’re going along quite well [in terms of making sales], but we are actually exporting jobs [sending them overseas] now because wineries are looking to get their costs down by looking to add some of the value that should be added in New Zealand, added offshore because it’s cheaper.”

NZMEA Chief Executive John Walley says, “The situation for the NZ Winegrowers is not unique. There will be less and less added value around all raw material producers as the dollars high level continues and manufacturers continue to suffer.”

“A look at the table below demonstrates the importance of having processing activity to go with primary production to the economy. Without this activity primary industries have limited scope.”

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“The Government’s claim that nothing can be done to address the NZ Dollar problem is misleading and is inflicting lasting damage to New Zealand’s capacity to earn a living from added value exports. The NZ Winegrowers' suggestion that the Reserve Bank Act be changed to target non-tradable inflation, as opposed to inflation overall, would be a great start and there are many other options available.”

“Policies that minimise activity, returns and drive jobs from New Zealand are clearly no way forward.”

ENDS

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