Headline: Two-speed economy as exports fall by 8%
Exports have tumbled eight per cent compared to May last year, showing the Government’s attempts to rebalance the economy lie in tatters, said Labour’s Finance spokesperson David Parker and Economic Development spokesperson David Clark.
“National is creating a two-speed economy where exporters struggle but speculators flourish,” said David Parker.
“Bill English promised to rebalance the economy but this drop in exports shows he has failed, yet again. Meanwhile property speculators are having a great time in Auckland.
“We can’t create good jobs and high wages without flourishing exporters. National’s policies are putting huge pressure on businesses that are trying to make quality products to sell overseas.
“We must reform monetary policy to make our dollar competitive and consistent, increase our investment pool through universal KiwiSaver and put taxes on speculators so that investment gets into productive businesses,” said David Parker.
“A close look reveals how much trouble our export sector is in. The exports that increased were mostly raw primary products but manufactured goods declined,” said David Clark.
“A stark contrast is that exports of wood logs rose 21 per cent but furniture and furnishings, which those logs get turned into, dropped 9 per cent. Electrical machinery dropped 23 per cent as well.
“This is another blow to manufacturers that create good jobs in this country. Our manufacturing inquiry sets out a blueprint for the sector that will lead to better jobs and higher wages.
“National is failing our manufacturers and exporters. It’s time for change,” says David Clark.
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