Manufacturers and Exporters Association launched

Media Release. 9 August 2007

The New Zealand Manufacturers and Exporters Association (MEA) was officially launched in Christchurch today.

The Association incorporates the Canterbury Manufacturers’ Association (CMA) and the New Zealand Engineering Federation (NZEF) with support from the Engineering, Printing and Manufacturing Union (EPMU), and will represent and promote the interests of manufacturers and exporters throughout New Zealand.

“Our exporters and manufacturers are often the canaries in the coal mine in regard to New Zealand’s future economic growth and their experience today reflects the experience of the wider economy tomorrow”, says MEA President John Errington.

“The majority of manufacturers and exporters across New Zealand are struggling under the weight of the exchange rate. We have to put an end to the two economies problem that exists in New Zealand or we face the end of our export sector. The MEA will champion those changes”, says MEA Chief Executive John Walley.

“Our members, manufacturers and exporters to whom we have spoken to around New Zealand, continue to express a deep concern for the future of direction of our economy. They recognise the need for a Government policy framework that offers support to our manufacturing and exporting businesses, reduces the damage caused by domestic inflationary pressure, high interest rates and an overvalued currency, enabling them to develop and compete successfully in both
domestic and international markets. It is concerns such as these that have led to the establishment of the MEA”, says Mr. Walley.

“We looked all around New Zealand to find an organisation that would be able to help our members, that has a culture fit and supported the things that the NZEF felt needed support. We found that in the CMA. Merging the organisations is a great outcome for all of us”, says Peter Herbert NZEF President.

“We are happy to support this new organisation as both sides of industry have more that brings them together than separates them. Some issues are outside the tent so to speak, but on most issues we will be on common ground”, says Andrew Little EPMU General Secretary.

“It is great to see this initiative come together, and it has happened not a minute too soon. We need to fight to keep our industry, exports and jobs rather than sit back and watch them fade away”, says John Errington, President of the MEA.

“It is worth noting that this is the first time such a group has been independently formed. The EPMU has been around for 140 years, the CMA 130 years and the NZEF for 60 years, possibly an indication of the depth of concern for manufacturing and exporting and the problems facing them”, said Mr. Errington.

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Manufacturers and Exporters Association of New Zealand (MEA) is a dedicated to supporting and representing the interests of manufacturers and exporters throughout New Zealand. The MEA provides an authentic and independent voice when advocating for central and local Government policies under which these sectors can develop and build sustainable growth and ensure that New Zealand enjoys a first world future. The MEA incorporates the Canterbury Manufacturers’ Association and the NZ Engineering Federation.

Engineering, Printing and Manufacturing Union (EPMU) is New Zealand’s largest trade union representing more than 50,000 members across a wide range of private sector industries, including mixed manufacturing, plastics, packaging, print, aviation, media, postal, timber/forestry, food processing, automotive, energy and telecommunications.

New Zealand Engineering Federation (NZEF) is dedicated to serving the needs and interests of the engineering sector throughout New Zealand, including tool making, fabrication, structural engineering, metal processing and engineering services. The Federation maintains dialogue with the Government on issues that affect the engineering industry and offers advice and support on exporting, training and skills development, industry standards and benchmarking and industrial relations.

Canterbury Manufacturers’ Association (CMA) represents manufacturers predominantly in Canterbury and Westland, with members from the remainder of the South Island and Auckland. The CMA’s vision is for a strong and prosperous manufacturing sector forming the basis of a high wage and high skilled economy, with the focus shifting from the primary sector towards Elaborately Transformed Manufacturers to ensure New Zealand’s position as first world country.

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FAQ’s

What is the Manufacturers and Exporters Association (MEA)?

* The MEA is an association representing the interests of those involved or associated with manufacturers and exporters throughout New Zealand, incorporating the Canterbury Manufacturers’ Association (CMA) and the New Zealand Engineering Federation (NZEF) with support from the Engineering, Printing and Manufacturing Union, (EPMU).

* The members of the MEA are deeply concerned about the future of New Zealand and the ability of New Zealand to hold a position in the developed work. Action is needed now to arrest New Zealand’s slide into poverty.

What is the MEA’s purpose?

* To develop and promote policies supporting the viability of manufacturing and exporting in New Zealand as the cornerstone of our long-term economic development and position in the first world,

* As this economic cycle continues, the situation facing the tradable sector is getting worse (remember Tailz) with long term negative changes:
– Since 1989 manufacture jobs are down 9%
– And total jobs in the economy up 42%
– 1989. Total jobs in NZ: 1,213,20 - Manufacturing Sector: 257, 200
– 2006. Total jobs in NZ: 1,723,80 - Manufacturing Sector: 234, 700
– OECD ranking slipped from 5 to -22 between 1950 and 2005.
– Productivity is consistently falling.

* To reverse the negative impact on job quality and the hollowing of our innovation system as activity goes offshore or is closed by New Zealand based operations,

* To ensure the sustainability and prosperity of New Zealand’s complex supply chains. For example, suppose you are the last (there are two left) aluminum foundry in New Zealand and you supply products and services to half a dozen customers. As each customer goes offshore, the viability of our companies based here is threatened.

In terms of security and price, the competitiveness for their remaining customers is threatened. As we lose our top-tier manufacturing and exporting companies, those smaller, service orientated businesses begin to lose their customers, profitability and eventually, jobs,

* To see the implementation of a better balanced tax system capital – income – profits but avoid yet more tax,

* To advocate for a better-balanced set of Government policies that do not drive domestic inflationary pressure, thus maintaining strong pressure on interest rates and exchange rates. The overheated housing market is driving domestic inflation, and clearly demonstrates that our rules are a problem and can be changed as they are our own creation. Bad rules mean bad outcomes. If we are to survive as a first world economy, we must treat all investments on the same basis – capital (property), profit and income.

What is so different about the MEA’s approach to policy advocacy?

* This is about common interests, community if you like, when manufacturers and exporters expressed a deep concern for the economy, for our survival as a first world nation – we went out and looked for support and found it nationally and from all sides of industry. So here we are.

* We have a different message to other associations and business groups in New Zealand in that we speak exclusively for industry, manufacturers and exporters who want to win from New Zealand, without the clear conflicts of interest that characterise other organizations.

Is the loss of manufacturing is natural or inevitable?

* No, it is neither natural nor inevitable.

However, if we do not create a competitive and equitable environment, if we do not try to hold on to what we have, then yes, New Zealand will lose its manufacturing base. The fact is that our environment is far from competitive and competition is far from balanced (for example, China v NZ) and absence of balance means that we loose things, had things been equal, we would not have lost. Having left it is likely they will never come back.

* The knock on, for those that remain, is that the innovation system comes under pressure. Suppose you have a bright idea, it is much easier to develop that idea if the resources and specialist support exist locally, 1000kms away is harder and harder translates to more expensive, and 5000kms is even harder still in terms of help and up front costs.

* The MEA considers the idea of design and development here and manufacture elsewhere to be unsustainable in the medium term and not a model that will build a future solid industrial and exporting base in New Zealand.

What are the new practical things you will do?

* The MEA will be much broader than the CMA in that it is a nationwide association. We will get comment from our members that include unions, manufacturers and exporters and on that basis; these views will be consolidated and clearly presented to politicians from all of the political parties.

* The base the involvement of unions will make what we have to say much harder to ignore or dismiss.

You say the government should change the exchange rate.

* No, the MEA is not calling for the Government to change the exchange rate. However, the Government needs to address the conditions that create inflation and high interest rates here compared to the rest of the world and ensure that the NZ currency is valued on a trade base, not overvalued on bubble of speculation.

* A value of currency based on trade fundamentals is one thing; one floated on a bubble of speculation is something else.

Is the establishment of the MEA a membership drive?

No. We wish it were nice and simple like that. Exporters and manufacturers and who currently members of the CMA and the NZEF are based around New Zealand and have expressed a deep concern for the future of NZ – that concern is what has driven the establishment of this wider association.

* Exporters and manufacturers need a clear voice that is independent, apolitical and free of the conflicts of different sectors of the economy that characterise the membership of other organizations. They cannot be as focused on supporting manufacturers and exporters if they are reliant on Government funding or support or operate as ‘broad churches’ with a diverse membership base – exporters, importers and real estate agents do not really mix. A few examples here are “get used to the 80 cent dollar” and “stop bleating and start competing” from some and the muted responses from all the others in the face of a exchange rate that is killing our external sector. It is just not good enough,

o In the end what really matters is the survival of New Zealand as a first world economy. It is worth remembering that our exporters and manufacturers are the canary in the coalmine – their experience today will be the wider experience tomorrow. Their present is the future we will all see and the questions they are asking:
o Will we have a place in the first world?
o Will we have a vibrant export sector?
o Will we have an innovation supporting producer infrastructure?
o Will we have better rules to develop a productive economy?

* Remember the Tuatara, things get worse bit by bit, if there is no reaction it can be too late.

ENDS

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