David
CUNLIFFE
Economic Development Spokesperson

10 September 2012 MEDIA STATEMENT
National’s hands-off-and-hope killing manufacturing

The litany of bad news coming from the manufacturing sector shows National’s hands-off-and-hope approach is failing, says David Cunliffe.

“While the volume of manufacturing is up marginally, its value has plunged $260 million in the June 2012 quarter. That comes on top of a $346 million drop in the previous quarter. That means there’s been a $600-million plunge in manufacturing value in the first six months of this year.

“Manufacturers are working harder and harder and producing more goods, but it’s not translating into value - and it’s certainly not translating into jobs.

“It’s just not credible for Economic Development Minister Steven Joyce to pretend that everything is sweetness and light. Where is National’s plan to help our manufacturers and exporters?

“New Zealand needs a modern manufacturing strategy, not a Government that sits on the side-lines. Labour would implement pro-growth tax reform, including a Capital Gains Tax that would encourage investment capital to flow into real businesses rather than real estate.

“Manufacturers are struggling to cope with an over-valued Kiwi dollar. Just this morning the Herald reported a forecast that the dollar will hit a post-float record of 90 US cents within 18 months. That would be devastating for manufacturers and could see many priced out of traditional export markets.

“The Government doesn’t have any answers. But Labour is ready to act by adding exports and employment to the Reserve Bank policy targets.
“Evidently National is content for New Zealand’s economy to continue its sad decline, for more workers to lose their jobs and for more young Kiwis to give up hope and head for the departure lounges,” says David Cunliffe.

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