Quitting in droves

20 July 2007.

Quitting in droves

The Canterbury Manufacturers’ Association (CMA) has reiterated its call to the Reserve Bank for sharp, decisive movement regarding the OCR.

“The CMA’s preferred action would be a 3 percent cut in interest rates. This move would increase import costs, slow consumer spending, and along with a fall in the NZ Dollar, speculators, Japanese housewives and Belgian dentists would experience some of pain that our exporters are feeling. However, it is likely that there will be nothing more than a tentative no change next Thursday”, says Chief Executive John Walley.

“The warnings this week from Craig Norgate over the uncertainty of current diary prices, and Professor Steve Hanke that our economy is trapped in a death spiral echo what we have been saying for a long time”.

“Based on our experience to date, no one has done much to help the external sector. Export New Zealand’s comment that exporters should “stop bleating and start competing” should have their members resigning in droves”.

“Look at the bigger picture. The Government can alter policy settings to reduce domestic inflationary pressure and it should be doing so – the OCR is not working and it is punishing the export sector for the behaviour of domestic consumers”.

“Unfortunately, Export New Zealand’s comments are simply a case of not rocking the boat. With friends like that our exporters don’t need enemies”.

ENDS

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