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Posts Tagged ‘exporting jobs’

Letter to the editor – How much will a ‘free’ trade deal with Sth Korea cost us?

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Frank Macskasy - letters to the editor - Frankly Speaking

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from: Frank Macskasy <fmacskasy@gmail.com>
to: NZ Herald <letters@herald.co.nz>
date: Mon, Mar 23, 2015
subject: Letter to the editor

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The editor
NZ Herald
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On 23 March, John Key and Tim Groser signed a “free” trade agreement with South Korea (before Key scooted back to New Zealand to prop up National’s lame-duck candidate in the Northland by-election).

Key tried his best to push for the benefits of the NZ-Korea FTA by claiming;

“At the moment, New Zealand exports into Korea attract $229 million a year in duties. Tariff reductions in the first year of the FTA alone will save an estimated $65 million.”

It may well “save” exporters $65 million in tariffs.

But how many jobs will it create?

Before New Zealand opened it’s borders to imports from low-wage economies, our unemployment was much lower. In 1981, the Five Yearly Census showed unemployment numbering at 60,258.

Thirtytwo years later, after trade liberalisation; abolition of tariffs; and other so-called “free” trade initiatives, the 2013 Census showed unemployment to number at 153,210 – two and a half times more than the early 1980s.

Perhaps it is just as well that we have cheap goods pouring in from China and elsewhere. We certainly have more unemployed to purchase them.

 

-Frank Macskasy

 

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[Address and phone number supplied]


 

References

TV3 News: NZ signs Korea free trade agreement

1983 New Zealand Yearbook – Unemployment

2013 Census QuickStats about national highlights


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2013 – More redundancies…

31 January 2013 4 comments

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Job-Hunting-10-Tips-for-When-Your-Unemployment-Checks-Stop

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Last year’s talley of redundancies – by  no means complete – which added to the rise in unemployment to 175,000 New Zealanders looking for work;

The year is barely one month old, and reports are starting to come in of redundancies,

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Wool spinner to sell Oamaru plant

Source

Listen to more on Checkpoint

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This is yet another business that has been affected by the high exchange rate – the same high Dollar that Steven Joyce has resolutely maintained is “not a crisis”,

There is no generic crisis in manufacturing but I would certainly acknowledge it is challenging for some companies.”

See: Currency intervention a fool’s paradise, says Joyce

Strange – I would have thought that the loss of 40,000 manufacturing jobs in the last four years would qualify as a crisis?

And why is it, I wonder, that National is willing and happy to throw $65 million (of our taxes)  at Warner Bros (a multi-billion dollar overseas company), as a subsidy, to “create” 3,000 jobs,

I’m proud our Government took action to make sure The Hobbit films were made here. They created 3000 jobs and poured millions of dollars into our regions.”

See:  National – Celebrating The Hobbit

If my ‘take’ on this is correct,

  • 3,000 jobs ‘created’ – good
  • 40,000 jobs lost – meh!

And ironically, Key’s claims of 3,000 “new jobs” created may not even be correct! (see:  Key denies Hobbit job numbers made up) Dear Leader may be pulling another ‘swiftie’ on us, as he did with the Skycity convention-construction numbers. (See: Puzzle of Key’s extra casino jobs)

So by the numbers, for this year:

Expect this list to increase on a weekly basis.

This blogger also has ‘inside information’ that Veridian Glass – a Wellington-based glass-supplier for the glazing industry – will also be shedding an unknown number of staff, including truck drivers.

Last year’s shocking news that unemployment had reached 7.3% (175,000 men and women out of work) may only be the beginning.

The next Household Labourforce survey data may see unemployment rising even further.

Meanwhile, as the manufacturing and export sector suffer from an over-valued dollar;  more and more jobs are being lost; and business-owners are demanding action from National.

Meanwhile, Steven Joyce reminds us,

Nobody’s arguing that being a manufacturer isn’t challenging. In fact, in my history in business, every time you’re in business it’s challenging.

But going around and trying to talk down the New Zealand economy and talk about a crisis in manufacturing, I don’t think is particularly helpful.”

See: Exporters tell inquiry of threat from high dollar

Business people are supposedly National’s core constituents.

You wouldn’t think  so.

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“Nope. No manufacturing or export sector crisis down here.”

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Lies, Damned Lies, and National Party Campaign Advertising

25 October 2011 4 comments

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National currently has a set of eight billboards, each featuring Dear Leader’s face, plus a short “statement of intent”, such as “Balance the Books Sooner“, “Building Better Public Services“, etc. They’re catchy and  positive-sounding.

But when compared to National’s real track record over the past three years, the current crop of National Party election hoardings is right up there with Soviet-style propaganda and Orwellian Double-Think. The phrase  “barefaced strangling of Truth”  comes to mind.

Let’s ‘test’ National’s “statements of intent”…

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The first question is “sooner than who“? No one else is currently in government. And when Labour’s term of government ended, they had paid down net debt to about 5.6% of GDP. In dollar terms, Labour paid down NZ’s sovereign debt from approximately $25 billion in 2001 to about $10.2 billion by 2008.

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NZ Net Sovereign Debt 2001 - 2009 (Source NZ Treasury)

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Considering that only half of our sovereign debt  – $18.4 billion – is due to the cost of rebuilding Christchurch,  the remainder is due to two tax cuts (April 2009 and October 2010) which we could ill-afford as a nation. Those tax cuts mainly benefitted high-income earners and the top 10% of this country’s wealthiest.

The top 150 “rich listers” wealth increased by a staggering twenty percent in just this year alone.

So really, we are borrowing money from overseas, to stuff into the pockets of the richest people in this country.

Does that sound remotely sensible?

The second question is who pays to “balance the books”, after borrowing billions to pay for tax cuts?

Answer: who do you think?

So the next time you see one of these billboards, promising  to “Balance the Books Sooner” – don’t forget why those books need “balancing” in the first place, and who will be paying for that “balancing”.

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When I see this billboard around town, all I can see is this: “EXPORT MORE REAL JOBS”.

Like the case of the contract for new  rail wagons that was awarded to Chinese companies, rather than our own workers in Dunedin and the Hutt Valley. Result; around 70 jobs lost.

Little wonder that Dunedin’s mayor, David Cull was angry,

This is frankly a form of economic vandalism. What are we mounting here? An economic development strategy for China?”  Source

Minister of Transport Steven Joyce responded by saying,

The reality is KiwiRail has been treated like Cinderella for too long. This Government will not place requirements on KiwiRail which we don’t on any other government or private-owned company.” Source

It’s obvious how little Steven Joyce cares about his fellow New Zealanders losing their employment.

It seems we’re already very good at exporting… Dairy products… Seafood… Timber… And jobs.

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All I can say to this is that starting the rebuilding seems to be taken an awful long time.

In the meantime, we’re losing timber sawmillers through lack of demand. At a time when the construction industry should be going through massive growth – we are seeing Fletcher shares dropping in value and uncertainty in the industry. How can Fletcher’s profits be falling at a time when an entire city requires re-building???

Other jobs are also being lost in Christchurch. And the dole queues grow.

But yet again, it seems that this government is quite content with “exporting” jobs to overseas workers.

Despite Dear Leader’s cheery (if vacant) smile on the billboard, there seems little to be happy about. Certainly the lack of leadership, action, and jobs is nothing to be happy-clapping about.

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This particular billboard has a weird, dark, ominous feeling to it.

What, precisely, is the “welfare incentive to work”? If National is hinting that it plans to abolish or reduce social welfare – let them come out and announce it to the public.

At the same time, they can announce where the neccessary 154,000 new jobs are, to take on the unemployed.

Let’s not forget that those on unemployment are not there by choice. Let’s not forget that the December 2007 Quarter Household Labourforce Survey unemployment rate stood at 3.8%.

Then the full impact of the banking crisis and global recession hit us.

Unemployment reached7.3% in the  December 2009 Quarter Household Labourforce Survey.

As of August this year, the jobless rate has fallen to 6.5 per cent – just under twice that of 2007.

So, Mr Prime Minister, an “incentive to work” can be something as simple as having jobs available. But having contracts to manufacture rail wagons going to China, or allowing Irish builders to work on Christchurch’s reconstruction will not be very useful to anyone.

Threatening the unemployed with “the stick” is not as effective as offering them a “carrot” – a job.

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Building rail“?!

What new rail are you referring to, Dear Leader???

In fact, as far as I am aware, Mr Key, your government is cutting  back on funding public transport in Auckland,

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Full Story

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Telling fibs again, Dear Leader?

As for the rest,

  • Building roads. Yes, you are. But wouldn’t greater investment in public transport make more sense?
  • Fast broadband. Again, yes. This government is subsidising  telcos to the tune of $1.5 billion to build a fast broadband network throughout the country. (I thought subsidies were a naughty thing in the world of the free market?)

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This one is probably one of the top two most asinine claims for National to be making. The voting public would have to be practically braindead, with the IQ of a wild mushroom, to put any credibility on this statement. Of all the campaign statements that National has ever uttered, nothing screams Arrogance! better than this billboard.

Less debt“? “Less debt” than who – Rarotonga?

The government’s borrowings have exploded almost exponentially, until we currently owe $18.4 billion to various lenders overseas.

If  more borrowing equates to  “less debt” , I’d like to see my bank manager agree to lend me a few million!

As for “lower interest rates” – obviously no one in the National Party campaign committee passed this by the Finance Minister, Bill English,

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Full Story

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Can I send impending increases in my mortgage rates to Bill English or John Key to pay?

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Again, I’ve no idea what this statement is supposed to mean; “staying strong on crime”.

Does it mean locking up offenders for longer periods?

Does it mean more prisons?

Well, not according to Bill English, who recently admitted that prisons were a “moral and fiscal failure”,

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Full Story

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And the Prime Minister has recently suggested that we might not need any new prisons,

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Full Story

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So what, exactly, does “staying strong on crime” mean? Well, nothing really. It is basically a meaningless utterance that panders to the red-neck, lock’em-up-and-throw-away-the-key element in our society. As long as these low-information voters are kept happy, National is assured of a few more votes on Election Day.

This last billboard is probably the one that would most rankle with many people – especially those 2,000+ who have lost their jobs in the last few years, as government cuts back on state workers,

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I’m not quite sure with how a “better” public services can be “built” when this government has effectively been gutting it. Despite clear committments from John Key and Bill English that National would only cap the civil service and not cut numbers,

National’s rebalancing of the tax system is self-funding and requires no cuts to public services or additional borrowing.” – Bill English

If National is elected to lead the next government, I personally guarantee that we will:  ensure government spending is focused on frontline services such as health a education by capping the number of bureacrats…” – John Key

That promise has been well and truly broken.

Sacking over 2000 workers who have worked with dedication and loyalty is hardly a fitting reward.

For such political statements to be made successfully, and without looking like liars and fools, politicians require only that the Voter has not been paying attention. Otherwise politicians would not dare put such rubbish out for  public consumption.

It’s simply amazing what garbage politicians will feed us, if they think they can get away with it.

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