Economic strategy right for these times
The Labour-led government has a sound, forward looking economic strategy, which will help exporters better deal with the challenges of a global economy, Economic Development Minister Trevor Mallard reiterated today.
"I acknowledge the pain many exporters and their workers are feeling right now," Trevor Mallard said.
"But I want to reassure them that this government has the right strategy to ensure we have a more resilient and flexible economy, so our firms can remain globally competitive and withstand outside pressures - such as the low US dollar impacting on our currency.
"Our strategy is built around:
Encouraging investment through the Business Tax Review
Encouraging savings through KiwiSaver
Encouraging a more skilled workforce
Building world class infrastructure
Growing more globally competitive firms through business assistance and support targeting exporters
Fiscally prudent spending
"National has no new ideas. Only today it has attacked Kiwisaver, it attacks government support for exporters whenever it can, it attacks all government spending yet refuses to say what it will cut. The thousands of teachers or nurses? The new hospitals and schools or perhaps the new roads and transport funding?
"Big tax cuts which the opposition wanted would have been reckless and sparked even more inflation and pain for exporters.
"These current challenges are not just a New Zealand phenomenon, manufacturers around the western word, like our manufacturers, are feeling the effects of the huge growth in low cost manufacturing out of China, East Asia and India - and also the demand for manufacturing to be close to the key global supply chains.
"New Zealand's manufacturing future is in the high skilled, high value niche market end of the spectrum where it is driven by innovation, design and by research and development. This transformation won't happen overnight but it is a steady process which our government is committed to supporting through the economic transformation agenda.
"The Reserve Bank and Treasury are continuing to look at ways of
supplementing the Official Cash Rate tool. Any major changes to monetary policy would have to have the support of a significant majority of the Parliament and certainly be supported by both the major parties.
"But it is worth remembering the last time another option was raised, National swiftly condemned it," Trevor Mallard said.
"I acknowledge the pain many exporters and their workers are feeling right now," Trevor Mallard said.
"But I want to reassure them that this government has the right strategy to ensure we have a more resilient and flexible economy, so our firms can remain globally competitive and withstand outside pressures - such as the low US dollar impacting on our currency.
"Our strategy is built around:
Encouraging investment through the Business Tax Review
Encouraging savings through KiwiSaver
Encouraging a more skilled workforce
Building world class infrastructure
Growing more globally competitive firms through business assistance and support targeting exporters
Fiscally prudent spending
"National has no new ideas. Only today it has attacked Kiwisaver, it attacks government support for exporters whenever it can, it attacks all government spending yet refuses to say what it will cut. The thousands of teachers or nurses? The new hospitals and schools or perhaps the new roads and transport funding?
"Big tax cuts which the opposition wanted would have been reckless and sparked even more inflation and pain for exporters.
"These current challenges are not just a New Zealand phenomenon, manufacturers around the western word, like our manufacturers, are feeling the effects of the huge growth in low cost manufacturing out of China, East Asia and India - and also the demand for manufacturing to be close to the key global supply chains.
"New Zealand's manufacturing future is in the high skilled, high value niche market end of the spectrum where it is driven by innovation, design and by research and development. This transformation won't happen overnight but it is a steady process which our government is committed to supporting through the economic transformation agenda.
"The Reserve Bank and Treasury are continuing to look at ways of
supplementing the Official Cash Rate tool. Any major changes to monetary policy would have to have the support of a significant majority of the Parliament and certainly be supported by both the major parties.
"But it is worth remembering the last time another option was raised, National swiftly condemned it," Trevor Mallard said.