OCR Announcement - Exporters still need mates

New Zealand Manufacturers and Exporters Association
Corner Cambridge Terrace & Manchester Street
PO Box 13-152, Christchurch, New Zealand
Ph: +64 3 353 2540
Fax: +64 3 353 2549
Website: www.mea.org.nz
Email: mea@mea.org.nz

Media Release, 25 October 2007.

OCR Announcement - Exporters still need mates.

The New Zealand Manufacturers and Exporters Association (MEA) says that today’s OCR announcement sends a warning signal to the Government concerning policies that generate further inflationary pressure in the economy but offers nothing except more of the same for exporters.

Chief Executive John Walley says that New Zealand is moving into a vote auction period in the run up to the election, given the huge Government surplus.

“The Government must do more to bring together our two economies. We need interest rates that are closer to the mean of the OECD, along with balanced taxation, fair value on the exchange rate, rather than a pre-election spending spree that will generate more inflationary pressure to the detriment of productive activity”, says Mr. Walley.

“There will be lots of opportunity, excuses and justification for changes that buy votes in the short term, such as tax changes in Australia and available surpluses off the back of the internal economy, but we all need to recognise the future is more about productive activity than assets.

Mr. Walley says that any changes to the tax system need to have clear objective in restoring balance and fairness to the economy, and consider the long term benefit to the economy as a whole, not just the sectors that are thought to deliver the most votes in the short term, yet will deliver more inflationary pressure.

MEA – the authentic and independent voice for manufacturers and exporters.

The New Zealand Manufacturers and Exporters Association (MEA) is a national organisation that was founded by the Canterbury Manufacturers Association (CMA) and the New Zealand Engineers Federation (NZEF). The MEA is New Zealand's only sector focused and independent voice of manufacturers and exporters. MEA members make nearly $2.0 billion in sales and have an export value of around $1.0 billion. Our organisation can trace its beginning to the early history of New Zealand.

As a legacy of the hard work and careful financial management of the past, we have a significant asset base that enables our independence and extends our activity. Subscriptions fund only a small part of our current operating costs.
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