Same old same old economic policy from Labour

Labour’s so called ‘Manufacturing Policy’ once again reheats the same old tired economic policies that would take New Zealand back to the dark days of high inflation, sluggish growth and low-job prospects, Economic Development Minister Steven Joyce says.

“Labour is stubbornly determined to continue to manufacture a crisis in manufacturing when one simply doesn’t exist,” Mr Joyce says.

“As the latest BNZ-Business New Zealand Performance on Manufacturing Index shows, manufacturing has been expanding for the last 19 consecutive months and 14,300 more jobs were added in the last year. Manufacturing activity is at the highest level since 2006.

“The only manufacturing the Labour Party is doing is trying to sell its re-tread policies as being something new. Their policies would hurt manufacturers and the New Zealand economy.

“R&D tax credits were first announced by Labour in 2007 and they have now re-announced it for the umpteenth time. Suggesting an R&D tax credit for businesses of 12.5 per cent somehow forgets the co-funding the Government has put in place of 20 per cent for high-growth firms.

“The two Davids – Cunliffe and Parker – are determined to remain ignorant of the Government’s considerable investment in business R&D as well as the establishment of Callaghan Innovation. Business R&D rose by 23 per cent between 2010 and 2012 and is now at record levels.

“Their procurement policy is classic Cunliffe double speak – promising both a “level playing field” but also a “Buy Kiwi made” policy.

“Weirdly Labour want to complicate the tax system by taxing firms more and less at the same time. A capital gains tax would hit all productive businesses. And they haven’t even mentioned the impact of their more costly Emissions Trading Scheme on Kiwi households and businesses.

“After such a sad song and dance about manufacturing being in crisis, it’s clear Labour is now embarrassed by this embarrassment of a policy –and have dropped it out on the eve of the Easter long weekend.

“New Zealand’s manufacturing sector is expanding at one of the highest rates in the world which is great news for Kiwis and their families. Labour wants to put that all at risk.”