Lies, damn lies and statistics.

The New Zealand Manufacturers and Exporters Association, (MEA), says that comments made by Prime Minister Helen Clark on TVNZ's Breakfast programme yesterday (Monday 15 October) that New Zealand has enjoyed faster economic growth than that of the US and Australia, demonstrates the 'boiled tuatara' mindset to New Zealand's damaging 'two-economies' problem and disregards the significance of recent activity losses and the ongoing simplification of our exports.

"The Prime Minister's comments yesterday that the economy is fine could not be more wrong, given that our complex export sector is struggling and business models are changing at an ever accelerating pace. These problems will not be fixed with electioneering that hopes to cover the cracks in our economy. New Zealand has experienced growth in over the past 8 years; however our research and experience shows that New Zealand continues, over time, to fall further behind Australia and the United States", says Chief Executive John Walley.

"As the election draws closer, politicians will be offering a variety of numbers and different interpretations as to what is happening; the two economy problem really matters and is a major threat to our future."

Mr. Walley says that the release of the Technology Investment Network 100 report, showing that an increasing number of New Zealand high tech firms are looking offshore to protect their margins, is another clear and current signal that there are issues within the elaborately transformed exporting sector which the Government needs to address if our exports are to increase rather than fall in complexity.

"The Government is running a surplus of over $8 billion, but New Zealand also has one of the largest current account deficits in the OECD and our ranking, on 2005 numbers, has slipped to 22nd. The Government has acknowledged that there are question marks over its monetary settings or else it would not have set up the select committee. However, the Prime Minister's comments yesterday show that there is also a serious question mark over whether politicians take the continued threat to our export sector seriously".

"The Select Committee into monetary policy is a chance for the Government to implement substantial changes to the current framework. However, with an election looming, any opportunity to change policy and support the tradable sector is likely to be clouded by the poll results and what the parties believe is the best way to pick up most votes".

"The Government should not use statistics to avoid action or listen only to the advice that it wants to hear. The domestic sector is currently strong, yet to quote those indicators alone does not give a complete and accurate picture of what is happening to our industrial and exporting sectors and New Zealand's current economic performance over all and over time".

"Benjamin Disraeli once said: "lies, damn lies and statistics", as the next election draws closer, politicians are likely use whatever they can to support their position, but who is kidding who?"

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.

Membership is open to all manufacturers and exporters and others at the discretion of our Council.

ENDS

© Scoop Media