@deirdrekent To be expected when income is taxed and capital gain not...
16/08/2017 9:22 PM
@bernardchickey @YourHomeLoanNZ Add ring fencing loses / deal to negative gearing and we might see some balance develop in the economy.
16/08/2017 7:36 PM
@bernardchickey Or take the job and do the right thing anyway - the RBNZ is "independent" after all...
16/08/2017 7:34 PM
@bernardchickey Not take the job because you would know you would be on a hiding to nothing. The link between earn… https://t.co/nxPRuAaT6t
16/08/2017 7:31 PM
RT @theyearofelan: Sure, the cancer was aggressive. But the chemotherapy was also very aggressive. There was aggression on both sides
16/08/2017 7:27 PM
@bernardchickey DTI+LVR+OCR all needed for financial stability & inflation.RBNZ can then push back on dumb policy f… https://t.co/CqXISZUHGq
16/08/2017 7:27 PM
@SelwynPellett Farming capital gains makes it hard to pay current expenses hence the need to externalise costs. Th… https://t.co/J1yevZAHft
14/08/2017 5:46 PM
RT @PositiveMoneyUK: Could the Bank of England create money to pay into the economy as a Basic Income? https://t.co/MAhSZN4qKD
14/08/2017 4:54 PM
RT @Transitionway: New money theory and debt creation: what you must know by @ProfSteveKeen @MarcoRaberto https://t.co/5rWgdg1JFe
13/08/2017 9:13 PM
@GaneshAhirao Just suppose policy inflated the currency (and say the RBNZ always said it was too high) - what would that do to exporters?
13/08/2017 8:58 PM
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17
JAN 14

Yet another manufacturing closure




It is sad, if not unexpected; to see another highly skilled New Zealand manufacturer close the doors, with the announcement of Fitzroy Yachts in New Plymouth will close its super yacht building operation. The Stuff article about the closure identified demand, the aftermath of the GFC and the overvalued NZ dollar as contributing factors to the shut down.

Make no mistake our current policy settings lead to such closures and off the shoring of skill based manufacturing activities, as a result our economy must rely more and more on commodities processing less and adding less and less value. Our policy frame work ignores our currency value; an overvalued currency has a massive effect on any exporter or import competing manufacturer. This is not a path to future prosperity; our economy needs to become more diverse and focus on added value and innovation
.
Our policies need to focus on manufacturers that at or near the threshold of failure, to understand what needs to change to improve the chances of success. Paying attention only to those firms who are doing well, while is great to see, does little to understand the support needed by those who are feeling hard times.

If we persist with a policy framework that overvalues our currency the ongoing loss of onshore skill based activity is inevitable, that is bad news for jobs and wages.
 


tags: fitzroy, manufacturing, closure, exports, offshoring, added value, skills, employment, policy framework
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