Developments

The Reserve Bank has lumped much of the responsibility for high interest and exchange rates at the feet of the Government, blaming fiscal deficits for the problem. Lower interest rates and exchange rates will require both fiscal and monetary policy changes say the New Zealand Manufacturers and Exporters Association (NZMEA). The Reserve Bank Governor Alan Bollard said at the Monetary Policy Statement this morning that, “Sustained strength in the currency is inhibiting the rebalancing of economic activity towards the tradable sector.  Accelerated elimination of New Zealand’s fiscal deficit could help improve national savings, thereby easing current pressure on interest rates and the New Zealand dollar, and reducing New Zealand’s dependence on international borrowing.” NZMEA Chief Executive John Walley says, “Alan Bollard has hit the mark with this statement. Fiscal imbalances are one of the main drivers of our unbalanced economy and it has been disappointing to see the Government reject proposals such as a capital gains or land tax and a higher superannuation age out of hand.” “However, the Reserve Bank has the option to use existing supply side toolsÊrather thanÊexpecting others to act. More can be done through prudential measures such asÊthe Core Funding Ratio and Loan to Value Ratios, which can push back against foreign credit thereby reducing exchange rate pressures.’ “It seems that both the Reserve Bank and the Government are keen to pass the buck on economic imbalances. What the real economy needs is some action not finger pointing.”

By John Carnegie, Business NZ For the first few days the two negotiating tracks were conducted in open sessions, but now negotiators have moved behind closed doors to work on some of the detail. Progress is painfully slow. Each meeting is like a pit stop – the race car pulls in, but unless the pit stop crew work together effectively, it can’t get back on the track to finish the race. You can imagine how a pit stop crew of 192 might make progress difficult. Some of the more contentious agenda items are being put on hold in order secure progress on other matters. ‘Getting progress where progress can be made’ is the order of the day for the President of the Conference. ‘Constructive ambiguity’ (in diplomatic-speak) is the approach being taken on others. It all adds up to a rather low level of ambition. What does it mean with regard to New Zealand’s agenda, in particular, our emissions trading scheme? The idea behind our ETS was that it would be a small part of a deep and liquid global carbon market. Unfortunately, limited progress towards a new climate change agreement also means limited progress towards such a deep and liquid global carbon market. However it seems that progress is being made at the more practical, implementation level. For instance, improvements are being made to the Clean Development Mechanism (CDM). (The CDM is the UN body that approves projects that can create Kyoto-compliant carbon credits that parties to the Kyoto Protocol can sell to help meet their legal obligations under the Protocol.) Getting the CDM on a sounder footing is important because businesses operating under any emissions trading scheme need good access to a steady supply of easily transferable carbon units. There is talk of extending the life of the […]

The NZ Institute has issued a list  of the top 10 issues it believes are confronting New Zealand’s long-term success. The list: * Can New Zealand implement stable policies that will improve long-term outcomes? * Can New Zealand develop & retain a capable, resilient population that works together? * Can New Zealand reduce the disadvantages suffered by young people in a way that contributes to New Zealand becoming a successful multicultural society? * Can New Zealand benefit economically, socially & educationally from ultra-fast broadband? * Can New Zealand gain competitive advantage and contribute to slowing climate change by shifting to a low-carbon economy? * Can New Zealand manage the natural environment so it remains productive, is an amenity for future generations and builds our brand? * Can New Zealand develop the depth of business & public-sector skill required to deliver success for our exporters & local businesses? * Can New Zealand secure the capital required to rejoin the world leaders in economic prosperity? * Can New Zealand develop a high-performing innovation ecosystem that grows many more high-value international businesses? * Can New Zealand accelerate the growth of export sectors? Institute director Rick Boven said: “If the country can be mobilised to resolve the ‘top 10’ issues, then the future for New Zealanders as a whole will be more assured.Efforts on many other important issues facing New Zealand will not stop and nor should they. But to build the foundation for long-term success we should focus on the vital few.”

Businesses and industry groups will be able to access the latest management thinking and research expertise with the launch of the Institute for Business Research at the University of Waikato. The new institute, to be launched at separate functions in Hamilton and Tauranga, draws on the expertise of researchers at Waikato Management School, ranked the number one business school in the country for research quality. IBR Director Dr Stuart Locke says the IBR will work with a range of clients, from industry groups and government agencies to some of New Zealand’s biggest companies, in areas ranging from innovation to economic impact analysis. “The key challenge facing NZ Inc today is how we are going to increase productivity and provide sustainable profitability into the future,” he says. “The IBR offers a significant and internationally recognised depth of research expertise that can make a valuable contribution in this context.” The IBR’s four main areas of interest are business performance and leadership, agribusiness and innovation, business in the service sector, and business in society. Recent and current projects include supply chain integration, the uptake of sustainability practices by New Zealand businesses, the impact of cultural support in the workplace, and adding value to businesses through improved technology investment. The IBR is also home to the Management Research Centre, which in conjunction with the New Zealand Institute of Chartered Accountants (NZICA), compiles the annual New Zealand Business Benchmarking Survey of more than 5,000 small businesses. It also works with clients to provide tailored business performance studies.   “Through the IBR, we can now offer research, advisory and consultancy services to help businesses and organisations add further value to what they do,” says Dr Locke. Keynote speaker at the IBR launch events is Professor David Hensher, an international authority on urban transport issues and the role […]

The winners of the 2010 New Zealand Engineering Excellence Awards were announced in Wellington on Thursday 24 November at a gala dinner hosted by MC Linda Clark and attended by more than 350 people which was held at the Duxton Hotel. The Winner of the 2010 Supreme Award for Engineering Excellence is the Coronet Peak Ski Area Snow-making Infrastructure and Reservoirs by Hadley Consultants Ltd, NZSki Ltd and TechnoAlpin. The Queenstown economy has been significantly strengthened through this collaborative project which enhances the ability of the Coronet ski field to open and remain open as planned for a lengthened and more predictable ski season. The flow-on benefits are evidenced by significant increases in incoming international flights.  Whilst conceptually simple – capturing and using as much as necessary of the water that naturally falls as snow or rain on the ski field region, or is available through groundwater springs – the practical complexities to be overcome were considerable. The mathematical modelling of the water harvesting, storage and use was very detailed. The scale of the pipework and reservoirs necessary, and the need to provide reliable services across a rugged, steep and sometimes unstable landscape and in a highly variable mountain climate were significant. The challenge of storing large volumes of water safely at high altitude was successfully addressed through detailed geotechnical analysis of the land geology. Narrow windows of available construction time demanded a well-planned work programme.  This included detailed protocols in regard to vegetation re-location or reinstatement. Air New Zealand Chief Executive Rob Fyfe took the premier individual title, The William Pickering Award for Engineering Leadership. Rob Fyfe completed his studies in mechanical engineering whilst with the Royal New Zealand Air Force. He entered the commercial world in 1987 and held a number of management roles in New Zealand before moving […]

The tragedy at Pike River Coal mine is being felt by the whole country and around the world.  It is rare that New Zealand has an industrial mishap of this magnitude. The mining industry in New Zealand contributes much to the economy. And its close and supportive communities are a lesson to us all. Soon there will be a Royal Commission and other investigations into how this tragedy happened. Let us hope the answers bring some solace to the families, peace to all who have been so deeply involved and accountability. As Energy Minister Gerry Brownlee said “we’re very determined to find out what happened here and how it happened and why it happened.”-Doug Green

Policy changes are needed to cure a declining foreign debt position say the New Zealand Manufacturers and Exporters Association (NZMEA). Standard and Poor’s has put New Zealand’s credit rating on negative outlook. Treasury Secretary John Whitehead has already commented that the Government needs to move into surplus faster than is currently forecast and this advice needs to be heeded. NZMEA Chief Executive John Walley says, “John Key’s statement that “nothing has changed” is precisely the problem. Although import consumption has dropped through the recession, the same old policy settings that encourage consumption rather than production are still there; we are not giving our exporters the motivation to earn our way out of trouble.” “We have a policy framework that has caused New Zealand to have some of the highest interest rates in the world, attracting foreign capital, and tax distortions that encourage consumption fuelled by asset backed borrowing.” “While these conditions remain we cannot expect a different result than the one we have seen for the past decades of ever increasing foreign debt.”

The New Zealand Herald has picked up on our Acton Tools article from October issue of NZ MANUFACTURER which shows the level of concern for the future of the manufacturing sector. Peter Rocque is a toolmaker who believes that in devaluing the toolmaking trade New Zealand is in danger of being a manufacturer  of only milk and agricultural products. What do you think about this? Is your company experiencing the same issues? We have had some good feedback already on this article which appears on page 1 of October issue. You are most welcome to share your thoughts with us. -Doug Green

The new Techspan Group e-commerce website is now live. The website has been completely redesigned for simple navigation and quick access to all Techspan products. The new Techspan e-commerce website (V4) has a similar look and feel to the previous site, but with highly refined features and functionality. The new e-commerce website is easier and quicker to navigate. Products have been arranged in the 5 core product groups : plastics machinery – plastic welders – ultrasonic equipment – process heating – industrial printing systems. The secure e-commerce functionality provides delivery times and prices, and enables customers to order and pay on-line. The site is distributor friendly, and enables ordering and payment by distributors, or their customers, with deliveries selectable to either the distributor or the customer. High level 3D security systems have been used for the highest level of privacy and security. RSS feeds, YouTube, Facebook, and newsletter blog feeds are also embedded in the site. Product information, datasheets, operation manuals, parts listings, videos, and MSDS sheets are all available on-line. Techspan Group is a 100% privately owned New Zealand company established 31 years ago (1979),  with warehouses in Auckland and Sydney. The company supplies high technology plastics machinery, industrial ultrasonic equipment, process heating equipment, and industrial printing technology – high quality products at competitive prices. On the site you can sign up for the company e-newsletter. next STEP Visit  www.techspanonline.com