Trevor Mallard reassures on government strategy
Economic Development Minister Trevor Mallard reiterated that the Labour-led government has a forward looking economic strategy, which will help exporters’ better deal with the challenges of a global economy.
He want to reassure them that this government has the right strategy to ensure they have a resilient and flexible economy, so its firms can remain globally competitive and withstand outside pressures such as the low US dollar impacting on its currency.
The strategies are built around:
- Encouraging investment through the Business Tax Review
- Encouraging savings through KiwiSaver
- Encouraging a more skilled workforce
- Building world class infrastructure
- Growing more globally competitive firms through business assistance and support targeting exporters
- Fiscally prudent spending
He said big tax cuts which the opposition wanted would have been reckless and sparked even more inflation and pain for exporters.
These current challenges are not just a New Zealand phenomenon, manufacturers around the western word, are feeling the effects of the huge growth in low cost manufacturing out of China, East Asia and India and also the demand for manufacturing to be close to the key global supply chains.
New Zealand's manufacturing future is in the high skilled, high value niche market end of the spectrum where it is driven by innovation, design and by research and development.
This transformation will not happen overnight but it is a steady process which the government is committed to supporting through the economic transformation agenda.
The Reserve Bank and Treasury are continuing to look at ways of supplementing the Official Cash Rate tool.
Any major changes to monetary policy would have to have the support of a majority of the Parliament and be supported by both the major parties.
But it is worth remembering the last time another option was raised, National swiftly condemned it.
23-May-2007