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

 

Export Dip A Big Loud Economic Klaxon

MEDIA RELEASE

FREEPHONE 0800 327 646 I WEBSITE WWW.FEDFARM.ORG.NZ
___________________________________________________________________


4 September 2012

Export Dip A Big Loud Economic Klaxon

The 0.4 percent fall in merchandise export volumes for the June 2012 quarter, has Federated Farmers questioning if government, at all levels, understands the need for spending and policy restraint.

“This slight dip in export performance could cut deep into the economy, if spending and policy aspirations are not pared-back,” says Bruce Wills, Federated Farmers President.

“There is a mass of policy expectations on agriculture designed to make us achieve things for which there is no easy solution. Actually, for some issues, there are no current solutions at all.

“There seems to be little recognition that in order for councils or Parliament to spend, someone first needs to go out and sell something. It is why the public deserve to know how they will be individually affected by policy wish lists.

“Even if our Official Cash Rate was zero, I doubt bank interest rates would be much different than today’s.

“The exchange rate is frankly too high, but tinkering with the monetary policy framework will get us nowhere, especially in the current global environment. The one thing that might make a difference, but no one seems willing to discuss, is the level and quality of government spending by central and local government.

“Instead of closely watching the cost of their policy ideas, our politicians want to fritter it away on nice-to-haves. If this tempo of borrow and spend continues and is combined with business unfriendly policies, then it will make it very hard to farm or to export.

“It is why Federated Farmers is bitterly disappointed the Spending Cap Bill is on hold. It represented an invaluable tool to bring government spending back to a modicum of reality.

“I have visited countries that have run out of cash and I can tell you the choices then become brutal ones.

“Similarly, watering down the Regulatory Standards Bill, as mooted by the National-ACT Confidence and Supply Agreement, will make the Bill virtually toothless. It will not provide any real check on the proclivity of our politicians to over-regulate first, before seldom asking questions second.

“And this is before we mention Opposition parties’ costly spending promises and their intended changes to the ETS, resource rentals, taxation and employment law.

“We have a great export sector that gives New Zealand spending choices, yet I fear it is one that risks being crippled by policies that will harm its productivity and competitiveness. If we don’t wish to see our export performance decline then something must be done,” Mr Wills concluded.

www.fedfarm.org.nz

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime Union: Deepening Supply Chain Crisis Requires Action

Maritime Union of New Zealand National Secretary Craig Harrison says the global COVID-19 pandemic exposed pre-existing weaknesses in our logistics sector, and created enormous problems... More>>



Air New Zealand: Employees Recognised With $1,000 Share Award

The efforts Air New Zealand employees made during one of the airline’s toughest years will be recognised via an award of $1,000 worth of company shares to all permanent employees... More>>

Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>

ALSO:


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>


Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>