Business News

Spring Creek miners and their families will lead a community ‘March for Work’ in Greymouth on Tuesday calling on Solid Energy and the Government to secure the future of the town and ensure the mine stays open. Solid Energy suspended operations at Spring Creek on Wednesday and is considering closing the mine – a decision that would put more than 200 people out of work and strike a devastating blow to a community still reeling from the Pike River tragedy. The ‘March for Work’ is supported by the EPMU, Grey District mayor Tony Kokshoorn, West Coast-Tasman MP Damien O’Connor and Pike River families spokesperson Bernie Monk. The EPMU’s West Coast organiser, Garth Elliott, says the march will show the strong community support for keeping Spring Creek open. “Our community has been absolutely battered in recent years, first with the Pike River tragedy and now this. We’re marching together to say to Solid Energy and to the Government that they can’t just abandon Greymouth. “Coal prices go up and down, but mining communities have to go on. We’re asking Solid Energy and the Government to take a real look at the damage that the closure of Spring Creek would do to the town and its people. “This kind of short-term thinking from Solid Energy isn’t in the interests of the company and it definitely isn’t in the interests of the communities whose labour and whose commitment has built our mining industry. “The community’s response so far has been really overwhelming, and we’re hoping for a good family event that shows what this community’s made of.” Spring Creek miner Daryl Sweetman says he doesn’t know what he’d do if he lost his job. He has a mortgage and a young baby, and his wife is pregnant with one more. “I was born […]

The NZ Newswire report today on the gains to be had by both New Zealand and Australia if they mutually recognise each other’s franking and imputation credits gives real oxygen to the issue, says the Employers & Manufacturers Association. “Its great to see the research numbers stack up high in favour of doing this,” said EMA’s chief executive Kim Campbell. “The report by Sydney’s Centre for International Economics and the New Zealand Institute of Economic Research shows mutual recognition would propel the trans-Tasman economy upwards by $A5.3 billion or $NZ6.9 billion by 2030. “Why wouldn’t you suffer the reported short-term hit to tax revenues to achieve this? The report says the hit would be just $NZ494 million for Australia and $NZ156 million for New Zealand. “We understand it was sent to the productivity commissions of both countries last Monday as a contribution to a project being carried out by them. “We have supported our government’s work to get this accepted in Australia for over a decade. A draft report is said to be made public on September 18. “A change would let people claim personal refunds on the tax that companies have already paid on the dividends they distribute to their shareholders. “Currently a trans-Tasman imputation regime permits trans-Tasman companies to allocate franking or imputation credits but shareholders are only able to use credits from their home jurisdiction, rather than receiving a full credit for the company tax paid in either country.”  

  There is a disconnect between the reported optimism of New Zealand businesses and their readiness to turn positivity into action, according to BNZ chief economist Tony Alexander. At a breakfast briefing held in Auckland recently, Alexander discussed New Zealand’s prospects for growth in an uncertain world. He shared insightful commentary on what lies ahead for the New Zealand economy with a focus on the labour market driven by overseas migration and the subsequent skills shortage. Alexander predicts a positive economic outlook with the New Zealand dollar poised to remain strong in relation to the rest of the world and he expects economic growth to rise from 1.7% to 2 – 2.5% year-on-year over the next two years. “New Zealand has a productive business base from which we, as a nation, accrue the most financial benefit,” said Alexander. “Our export market is not built simply around processing or manufacturing, but the availability and production of key commodities such as milk powder, wine and meat for export. “Furthermore, New Zealand is a strong investment ‘brand’ with a good reputation which creates a positive driver for export growth.” Because of the increased optimism, Alexander challenged New Zealand employers to look closely at their plans for business growth and their recruitment strategies to help drive that growth. In particular, how they might attract talent during an inevitable skills shortage. “The current skills-short market means companies will be increasingly looking at offshore recruitment options to plug the labour gaps,”said Alexander, challenging the audience: “How will you be hiring in six months time?” The commentary backed up what Robert Half is seeing on the ground: businesses are positive about growth but have been slow to react to what’s happening in the market and are cautious about hiring the skilled workforce needed to manage that growth. […]

– Eli Beman With comprehensive, effective support available to New Zealand exporters from government and financial institutions, and a strong value placed on international trade, we are fast becoming known as the little country with a lot to offer! Is exporting for me? There has never been a better time for manufacturers to trade internationally. If, like many manufacturers across New Zealand, your aim is to boost sales, increase profit and improve innovation then the question should not be Is Exporting for me? rather Why am I confining myself to local markets? Exporting can help boost sales by showcasing your product to new customers and niche markets. Your exposure to the global marketplace will ensure you become immersed in new concepts and technology, improving not only your ability to compete globally, but locally you will lead innovations and ideas. You will become familiar with international best practice and the needs of overseas customers, widening your potential to not only showcase your existing products, but explore demand for new products. According to recent research, exporting companies are more productive than non-exporters. The drive to succeed and compete is elevated by the exciting rewards that international trade has to offer. Often, more streamline and productive practice is discovered and adopted. It is also proven that with exporting comes better financial success. Those who decide to export increase their chance of building and maintaining a prosperous business. During local economic downturn, exporters often maintain a stronger standing than those businesses that rely solely on local economic conditions. Exporters are also less likely to be affected by seasonal factors that local markets impose. Break down barriers There are, of course, barriers to face when becoming involved in exporting. But, like all business practice, itÕs how you approach and break down those barriers that will […]

  David Shearer In 1881, a group of South Island farmers and businessmen established Summit Wool Spinners in Oamaru. It forged a proud heritage and grew into a high-tech international business: one of North Otago’s biggest employers. But in June, fifty jobs were lost at its Oamaru plant. In a population of 13,000 that’s got to hurt. This is happening too often: 70 jobs lost at Norman Ellison Carpets in June. 71 at Flotech. 55 at Gould’s Fine Foods in July. Some of those staff had been loyal employees for more than 20 years. There are plenty of reasons why businesses falter. But these weren’t fragile startups, or badly run. They were once very productive businesses. So what’s the problem? The government blames it on Europe. But our major trading partners, Australia and China, haven’t been in recession at all. In the last three years New Zealand’s GDP has grown just 0.4 per cent a year in comparison to Australia’s 2.8%. The government also blames it on the earthquakes. They were devastating, but economically the rebuild of Canterbury now presents a source of growth. We have tried to shield ourselves from declining living standards by borrowing money and selling assets. Consequently, our overseas liabilities from personal borrowing are among the highest in the world. Meanwhile we’re losing 50,000 good people a year to Australia because our wages are so low. I listened to a speech recently by Professor Gšran Roos, a world leader in innovation. His research shows that each job in manufacturing generates between 2-5 jobs in the rest of the economy. So when Oamaru loses 50 jobs in its wool mill, the ripple effect hits Timaru, Maheno, Hampden, Middlemarch, Palmerston, Ranfurly, Dunedin. Flip that on its head and – given the right conditions – renewed business vibrancy could […]

There is a disconnect between the reported optimism of New Zealand businesses and their readiness to turn positivity into action, according to BNZ chief economist Tony Alexander. At a breakfast briefing held in Auckland this week by Finance & Accounting and Technology recruiter Robert Half, Alexander discussed New Zealand’s prospects for growth in an uncertain world. He shared insightful commentary on what lies ahead for the New Zealand economy with a focus on the labour market driven by overseas migration and the subsequent skills shortage. Alexander predicts a positive economic outlook with the New Zealand dollar poised to remain strong in relation to the rest of the world and he expects economic growth to rise from 1.7% to 2 – 2.5% year-on-year over the next two years. “New Zealand has a productive business base from which we, as a nation, accrue the most financial benefit,” said Alexander. “Our export market is not built simply around processing or manufacturing, but the availability and production of key commodities such as milk powder, wine and meat for export. “Furthermore, New Zealand is a strong investment ‘brand’ with a good reputation which creates a positive driver for export growth.” Because of the increased optimism, Alexander challenged New Zealand employers to look closely at their plans for business growth and their recruitment strategies to help drive that growth. In particular, how they might attract talent during an inevitable skills shortage. “The current skills-short market means companies will be increasingly looking at offshore recruitment options to plug the labour gaps,” said Alexander, challenging the audience: “How will you be hiring in six months time?” The commentary backed up what Robert Half is seeing on the ground: businesses are positive about growth but have been slow to react to what’s happening in the market and are cautious […]

A culture of innovation is needed to catapult New Zealand’s economic performance, says BusinessNZ. Leading businesses were represented at the launch today of Building Innovation, the Government’s progress report on work towards a high value-added economy. BusinessNZ Chief Executive Phil O’Reilly says there is strong support in the business community for the Government’s systematic approach to building innovation. “Recognising that there are many ways to facilitate knowledge-based industries and that innovative businesses can spring from any sectors, it is encouraging to see the wide range of actions taken by Government to advance innovation,’ Mr O’Reilly said. “The Advanced Technology Institute, to be named in honour of Sir Paul Callahan, is expected to be operational by the end of 2012. The Institute will be a connector between business, science and research here and overseas, and is a centrepiece of the innovation policy. “But there are many other initiatives reported on today including expanded TechNZ funding, better government procurement policies, National Science Challenges, more funding for the Performance-Based Research Fund, refinement of trademark and patents law, more investment in engineering at tertiary institutes, encouragement for multi-nationals to conduct research in New Zealand and others. “It is up to business to innovate and grow and take up the Government’s invitation to keep the lines of communication open and provide feedback on how we are travelling towards a higher-tech future.”  

New Zealand’s manufacturing sector remains largely in a holding pattern, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for July was 49.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This is 0.6 points down from June and the lowest July result since 2008. The current result is the second time this year that manufacturing activity has slipped back into contraction mode. BusinessNZ’s executive director for manufacturing Catherine Beard said that the current result for New Zealand is to a large degree mirroring what is currently occurring offshore in the manufacturing scene. “While the current New Zealand result represents a minor fall into contraction, spare a thought for the Australian manufacturing scene that fell significantly in July to 40.3. Their low result is partly symptomatic of high current costs within their sector. “This provides both positives and negatives for New Zealand. On the plus side, it means we become more competitive on the global market for our products. However, the down side is that we still want Australia’s economy to remain healthy given a large proportion of our manufactured exports head across the Tasman.” BNZ senior economist Craig Ebert said “Higher construction is good for local manufacturers, for obvious reasons. And so we’ve been pleased to see increasing signs of life in the various leading indicators of the building industry.” Four of the five seasonally adjusted main diffusion indices were in contraction in July. The strongest result was for new orders (52.9), which actually improved 1.8 points from June. This was followed by production (49.6), which dipped into contraction after falling one point from June. Deliveries (49.1) were the only other index to record an improvement […]

June’s gain, as measured by changes in the volume of production index, was a reversal of the 0.2% and 4.1% declines recorded the year before and in May, respectively. Of the 20 major sectors, 12 posted increases, led by footwear and wearing apparel. The sector’s output climbed by an annual 84.7%. Manufacturing grows 4.4% in June

Executive Director of ExportNZ Catherine Beard says the Government should be congratulated on pulling together all its plans for the export sector into one document and for setting the country a stretch goal of increasing exports to 40% of GDP by 2025. http://www.mbie.govt.nz/pdf-library/what-we-do/building-export-markets-bga-progress-report-august-2012.pdf “We get a lot of feedback from exporters saying they would like to know what the plan is and how we are going to get there. This document is a good summary of all the work that is going on to support the export sector. “The question will be whether there are enough new ideas that are over and above ‘business as usual’ to help exporters reach that target. “The high New Zealand dollar is a challenge for exporters. We hope the Government’s new investment in R & D assistance for industry in the form of the Advanced Technology Institute will help exporters move faster up the value and innovation ladder. This will insulate them from having to compete on price against lower cost countries. “Others ideas we think are worth exploring are the development of cluster policies which are common in Europe and around the world to better leverage the business ecosystem where comparative advantages exist. We are keen on policies that can help our small to medium sized companies get better leverage in big markets, such as collaborating onshore to compete offshore. “The development of our mineral sector could make a big difference to our exports, as could adding water in areas of high agricultural potential. “Exporters also tell us they would like more in-market assistance which could be an area of increased investment in future budget rounds. This could spread the good work that NZTE does to a larger pool of exporters. “Another area of potential we need to tap into in a smarter […]