15 August 2012
Govt’s export plan misses big issues exporters face
National’s new export strategy fails to address two big issues that threaten our exporters: the high New Zealand dollar
and the risk to our brand posed by National’s anti-environment agenda, Green Party Co-leader Russel Norman said today.
The Building Export Markets report released today largely repackages previously announced Government policies.
“National’s plan for our export industry fails to address the number one issue our exporters are facing – the high New
Zealand dollar,” said Green Party Co-leader Dr Russel Norman.
“Our high and volatile exchange rate is hurting our export industry with close to half of all New Zealand export
companies saying it is the biggest barrier they faced to growth.
“Our exporters struggle to compete because our dollar is over-priced and our domestic manufacturers are undercut by
artificially cheap imports.
“The result has been a disaster. 25,000 manufacturing jobs have disappeared under National while the number of companies
exporting has stagnated since 2009.”
The Government also outlined its new plans to build our international brand around “The New Zealand Story”.
Industry-targeted campaigns such as 100% Pure New Zealand will sit under the broader ‘story’.
“The National Government is recognising the value of our brand to our export economy, and the New Zealand Story is an
important part of this, however its economic agenda actively undermines our clean and green brand,” Dr Norman said.
“By gutting the Emissions Trading Scheme, intensifying agriculture, and pursuing their deep sea mining agenda, the
National Government is putting our $20 billion clean, green brand at risk.”
Dr Norman proposed a number of possible measures for addressing the high exchange rate but warned that there was no
quick fix, hence the need for a wide public policy debate on the issue.
“We can reduce the pressure on the exchange rate and the export sector by empowering the Reserve Bank with a mandate
beyond inflation to include exchange rate levels and volatility,” Dr Norman said.
“Instituting a tax on capital gains (excluding the family home) would also ease upward pressure on the exchange rate.
“And we need to ensure that profits generated from New Zealand’s resources stay in New Zealand, by restricting foreign
purchases of land.
“There are smarter ways to manage our economy than the National Government’s current focus on selling our most
productive state-owned assets,” said Dr Norman.
The Building Export Markets report is available at:
Link to the Statistics New Zealand table on barriers exporters face: http://www.greens.org.nz/misc-documents/barriers-generating-overseas-income-statistics-new-zealand-data-2007-2011
The Green Party's plan for our economy: http://www.greens.org.nz/greenjobs
ENDS