New Zealand’s fall in manufacturing sales is the largest in the past 5 years and that is in spite of volumes of sales increasing, says David Clark Labour’s Economic Development spokesperson.
“Given this morning’s stark warning by the OECD that the Government’s complacency is putting the health of the economy at risk from a further downturn in commodity prices, this $1.7 billion fall is a further indictment of the Government’s lack of vision.
“They have bet everything on commodity processing at the expense of value-added exports, and with the Survey of Manufacturing’s report showing that commodity prices are falling through the floor we are left with nothing to bank on.
“Even if you exclude the impact of falls in dairying and meat over the last four quarters, manufacturing sales have fallen by 1.2 percent this year.
“The Government must stop blaming farmers and broaden the base of the New Zealand economy to escape the narrow reliance on dairying.
”These figures show how foolish the Government was in its decision to focus on volume over value in exports. It’s like a rugby coach saying possession is more important than points on the board,” says David Clark.