An export NOT to be proud of
by HERA Industry Development Manager Nick Inskip On April 15, Minster for Research Science and Technology Wayne Mapp announced that the research vessel Tangaroa operated by the Crown Research Institute, the National institute for Water and Atmospheric Research (NIWA) would be heading to Singapore for an overhaul and conversion work. The vessel, which could have been ably handled by Devonport-based VT Fitzroy, is instead being sent to a Singaporean shipyard. New Zealand has a Closer Economic Partnership (CEP) agreement in place with Singapore which is similar to that with Australia. The agreement allows goods which are manufactured at least 40percent in either country to be traded duty free. The agreement says that “Under the CEP, contractors in each country have equal status when bidding for most government purchasing”. Andrew Little, Secretary of the Engineering, Printing and Manufacturing Union said that, “Even though the Government will show a small saving by getting the job done in Singapore it would have served New Zealand taxpayers better in the long run to keep such high-value high-skilled work in New Zealand. The investment in our own marine engineering sector would surely have been more valuable than the small saving to the public purse by sending the work overseas”. The implications of sending the Tangaroa upgrade overseas are simple: We export 40 skilled jobs, we fail to develop an industry capability that we can market to the world, we fail to attract the company supplying the technology for the upgrade to set up an office in New Zealand, and we forgo the income and company taxes that would have been paid. Meanwhile across the Tasman; the state of West Australia has just launched a A$60Million floating dock as part of A $170Million upgrade to their ‘Australian Marine Complex’ which is expected to generate A$2Billion to […]