10th February 2005
Manufacturing Strategy Needs A Change Of Attitude
"The governments announcement of a Manufacturing Summit is welcomed" says Alasdair Thompson, chief executive, Employers
and Manufactures Association (Northern).
"Given the importance of manufacturing as our largest employer and its role as an exporter, investing in manufacturing
and lifting its productivity, raising research and development , design and innovation are hugely important to raising
the per capita incomes of New Zealanders.
"The environment for manufacturing must be conducive to establishing and growing manufacturing plants. We know the
Resource Management Act, product legislation such as HSNO (hazardous substances and noxious organisms), rules for
depreciation and expensing R, free trade agreements are all important issues to manufacturers and their employees.
"The EMA's call for company tax cuts likewise is to improve the overall environment for business investment which is
lower than Australia's and explains why productivity per capita is also lower here.
"It is important to remember that the movement of manufacture overseas is not always one way and New Zealand needs to
create and exploit its advantages.
"The closure of the HMG plant in Sydney and current relocation of operations to the HMG Manukau plant is an example of
this. The significant upgrade investment and plant expansion demonstrates that with the right support New Zealand can
attract and retain high export earning manufacturing businesses.
"In this instance the willingness of the Manukau City Council to fast track RMA procedures and the efficiency of the New
Zealand plant meant that it was commercially viable and more attractive than investing in upgrading the Sydney plant.
EMA is developing a manifesto for manufacturing and we see the proposed manufacturing summit as an opportunity to
identify policy priorities to increase investment in New Zealand's manufacturing productivity.
ENDS