Media

Wood Processors Association supports urgent review of fiscal policy

Media Release - 27 April 2007

The Wood Processors Association supports calls for changes to fiscal policy being proposed by various political and export-based commentators and seeks the introduction of additional fiscal measures to manage the economy and, in particular, to dampen the excessively high exchange rate.

An exchange rate of 75 cents is at least 15 cents higher than where most wood processors can operate successfully, as the majority of their product is exported.

Like other manufacturers feeling the pinch, the wood processing sector adds value to wood products, rather than having them exported as whole log to overseas markets.

"Wood processing provides jobs within New Zealand but as an industry is under severe threat, due to the high New Zealand operating costs and also the high exchange rate", says David Anderson, Wood Processors Association Chairman.

All wood processors have been calling on the Government to find additional ways to manage the economy and are concerned at the lack of speed in which reviews around alternative fiscal measures are taking.

At the last review of the OCR, the Reserve Bank Governor Dr Bollard indicated that a review of alternative measures was possible, however there is no evidence of this review having been done, nor was there any mention of it in the latest review of the OCR. "This is concerning", says Anderton, "as businesses are going to the wall while government agencies delay undertaking these fundamental reviews of a serious anomaly in New Zealand’s fiscal policy."

New Zealand jobs are and will continue to be lost if the Government does not act now. It cannot wait much longer because once capacity in the manufacturing sector is lost to New Zealand it is highly unlikely that it will ever be rebuilt.

Ends

Contact
David Anderson
Chair, Wood Processors Association
Ph: