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Talk fests do not help the bottom line

Editorial NZ Manufacturer February 2025

We are not short of commentators in New Zealand telling us what is wrong. Some even prefer ideas on how we can fix things. These commentators appear in our newspapers and whatever they say – does it matter? – does not bring about change. They do not affect policy.

They keep their Profile and allowance – the newspapers keep their commentators as added value for the paper they write for, seemingly to satisfy the subscriber.

If they believe they can make a difference to our way of life, they need to talk less about (say) real estate, where so much money is invested that does not go into the productive sector.

People buying up property are, generally, not the creative class, innovators, developers, forward- thinking in their view on the nation’s future.

This is where a cloud hangs over our prime minister; he owns properties and whatever he says for the direction the country does not affect his back pocket. He is in a regal position where decisions made will not lessen his financial situation.

We have Chris Plenk, the new Minister for Small Business and Manufacturing who does not have a budget, A minister outside cabinet who answers to Judith Collins.

We have the disassembling of Callaghan Innovation and its functions moved to other entities.

We need to come to grips with where the country is heading and how we are going to get there. Is it more overseas investment, hopefully in businesses and not real estate. Is it public sector and private sector investment – and what will the investment focus on?

We continually discuss the rail, road and sea transport systems as to help make the economy stronger. But just what is around the corner?

We know agriculture and land-based enterprises continue to succeed, great export earners. Our top 10 exports accounted for over three-quarters (76.4%) of the overall value to global markets:

Dairy, eggs, honey: US$12.2 billion (30.7% of total exports)

Meat: $5.4 billion (13.6%)

Wood: $2.9 billion (7.2%)

Fruits, nuts: $2.2 billion (5.4%)

Beverages, spirits, vinegar: $1.53 billion (3.9%)

Cereal/milk preparations: $1.52 billion (3.8%)

Modified starches, glues, enzymes: $1.4 billion (3.4%)

Machinery including computers: $1.19 billion (3%)

Fish: $1.19 billion (3%)

Aluminium: $949.8 million (2.4%)

Contract manufacturing is primarily for the domestic economy. Rocket Lab, founded in NZ in 2006 has headquarters in the USA and some Fisher & Paykel Healthcare products are made in Tijuana, Mexico. Success on export markets, by not being made in NZ.

We need a Minister for Productivity.

 

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