Same old same old economic policy from Labour
Labour’s so called ‘Manufacturing Policy’ once again reheats the same old tired economic policies that would take New
Zealand back to the dark days of high inflation, sluggish growth and low-job prospects, Economic Development Minister
Steven Joyce says.
“Labour is stubbornly determined to continue to manufacture a crisis in manufacturing when one simply doesn’t exist,” Mr
Joyce says.
“As the latest BNZ-Business New Zealand Performance on Manufacturing Index shows, manufacturing has been expanding for
the last 19 consecutive months and 14,300 more jobs were added in the last year. Manufacturing activity is at the
highest level since 2006.
“The only manufacturing the Labour Party is doing is trying to sell its re-tread policies as being something new. Their
policies would hurt manufacturers and the New Zealand economy.
“R tax credits were first announced by Labour in 2007 and they have now re-announced it for the umpteenth time. Suggesting
an R tax credit for businesses of 12.5 per cent somehow forgets the co-funding the Government has put in place of 20 per
cent for high-growth firms.
“The two Davids – Cunliffe and Parker – are determined to remain ignorant of the Government’s considerable investment in
business R as well as the establishment of Callaghan Innovation. Business R rose by 23 per cent between 2010 and 2012 and is now at record levels.
“Their procurement policy is classic Cunliffe double speak – promising both a “level playing field” but also a “Buy Kiwi
made” policy.
“Weirdly Labour want to complicate the tax system by taxing firms more and less at the same time. A capital gains tax
would hit all productive businesses. And they haven’t even mentioned the impact of their more costly Emissions Trading
Scheme on Kiwi households and businesses.
“After such a sad song and dance about manufacturing being in crisis, it’s clear Labour is now embarrassed by this
embarrassment of a policy –and have dropped it out on the eve of the Easter long weekend.
“New Zealand’s manufacturing sector is expanding at one of the highest rates in the world which is great news for Kiwis
and their families. Labour wants to put that all at risk.”
ENDS