“Change nothing, nothing changes”

Canterbury Manufacturers’ Association
Media Release
21 March 2007

“Change nothing, nothing changes”

The Canterbury Manufacturers’ Association supports comments made elsewhere that manufacturing is a crucial and fundamental component of the New Zealand economy. However, the Association cautions that unless solutions are forthcoming from the policy makers to prevent the further loss of activity, expertise, skills and capability for innovation in the sector, it will remain a case of “change nothing and nothing changes”.

“The recent comments in the media and last year’s Government sponsored Manufacturing+ report simply regurgitated the obvious and spoke of the need to add value into the economy and develop strategy, creativity and connect to markets either in New Zealand or overseas”, says Chief Executive John Walley. “However, there are few working in manufacturing that are not already fully aware of these requirements. They know the risks involved in building an export business very well and have to deal with them everyday - to be specific; competition from low cost imports, excessive compliance costs, employment costs, energy costs and over-valued exchange rates”.

“Our international trading partners recognise the importance of policies that support incentives for research and development, staff development and investment in plant and patents”, says Mr. Walley. “In New Zealand, politicians give them lip service; the difference is as we talk, others act. Their economies experience strong export led growth, while New Zealand has one of the highest interest rates in the OECD and a growing trade deficit. Their manufacturing sectors (and wider economies) enjoy innovation and growth across a range of areas. The solution offered by New Zealand policy makers appears to be pack up and relocate offshore”.

“It is positive that some other organisations are recognising the problems facing our manufacturing firms and calling for policy to support local onshore development. However there needs to be direction and leadership on the part of the Government and a focus on delivering policies that support manufacturing and exporting, not more and more years of talk and ever more reports”, says Mr. Walley. “We need to match our words with actions because until then, New Zealand companies will struggle against low cost and better-supported overseas competition, and ultimately our capacity for innovation will be lost offshore. Must it always be a case of change nothing, so nothing changes?”

ENDS

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