WPA congratulates Reserve Bank over intervention

WPA congratulates Reserve Bank over intervention

The Wood Processors Association Chair Dave Anderson has congratulated the Reserve Bank Governor on intervening in the foreign currency market yesterday.

“It’s good to see the Reserve Bank attempting to correct a severely over-valued currency, which is having a devastating impact on exporters”, says Anderson. “Exporters are not looking for handouts, but we do need to be able to operate in an environment with a stable and appropriately valued currency”.

The New Zealandwood processing sector adds value to New Zealand grown logs and prevents whole logs being sent off shore. With large capital requirements for investment needed in plant and equipment, it is vital that the Government provides a stable economy to attract and retain investors of the magnitude required to ensure our logs are processed in New Zealand – an activity that provides jobs for New Zealanders.

However, the sector has concerns about the Government's artificial intervention in the currency market required to correct the now well-recognised failings of New Zealand's monetary policy. "The situation is akin to driving the economy with one foot on the currency accelerator, and the other on the currency brake, says Anderson, so it is important the Government acts quickly and decisively to provide the Reserve Bank with more tools to both manage inflation and also provide a currency at a level that provides returns that allows exporters to remain in business.”

The Wood Processors Association represents manufacturers of pulp and paper, sawn timber and wood panels.

ENDS

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