Media Release 10 October 2007.

The export sector ‘needs mates’ MEA tells Select Committee.

Our export sector “needs mates”, the New Zealand Manufacturers and Exporters Association, (MEA), told the Parliamentary Inquiry into Future Monetary Policy Framework earlier this afternoon. Attending were Scott Yates of Plankwall in Auckland; John Heng of Click Clack in Palmerston North; Gordon Sutherland of AW Fraser and John Errington of EC Gough (MEA President) both of Christchurch and John Walley, MEA Chief Executive.

“The MEA welcomed the opportunity to meet with the Select Committee and present the case that alternative measures are needed, other the OCR, to deal with domestic inflation in New Zealand”, says John Walley. “Higher productivity and growth in exports will only follow more productive investment; more productive investment will only follow deep changes to existing policy settings”.

“The two economies outcome must change. Exporters need equitable treatment from policy, and change is long overdue to target the specific drivers of domestic inflation and to include measures that provide support and stability for the external sector”.

“Other countries have recognised the need to implement such a framework, yet New Zealand seems to see manufacturing and exporting as optional extras. We are losing activity to indirect policy fallout, and are now even funding our manufacturers and exporters to relocate offshore. We have the highest current account deficit in the developed world and no prospect of improvement unless things change”.

“Policy settings must give us back one economy. We hope this Select Committee help redress this situation”, says Mr. Walley.

“What we need are policy settings that support and encourage productive wealth creation not property”, says Mr. Sutherland.

“If we don’t act quickly and significantly we might see the end of employment in the export manufacturing sector, in terms of skills and capability loss for future generations”, says Mr. Heng.

We need to recognise the needs of all companies attempting to build exports markets and provide them with more stability on the dollar and certainty of return on export sales”, says Mr. Yates.

“If there is any real desire to fix the exchange rate, cut the OCR by 3% and we will see a much lower dollar, and then use the other available tools to control the domestic sector if there is an issue”, says Mr. Errington. “We need to learn from the Federal Reserve.”

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

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