Joyce on maintaining economic growth

January 14th, 2014 at 1:00 pm by David Farrar

writes in the NZ Herald:

So how do we keep growth happening? How do we lift New Zealand’s longer term growth rate so that we add more jobs, reach our potential, and become a true “Pacific Tiger” rather than just a short-term success story? I think there are several key things:

1. Keep opening our markets and building strong people to people relationships. The lesson of the China FTA is obvious. If we can get a good TPP deal, then we should grab it – along with other FTA and trade opportunities.

2. Innovate, innovate and innovate. The National-led Government is putting a lot of taxpayers’ money into assisting firms and their ideas. As a country we are starting to see the power of innovation in our industries but we need to keep lifting private sector investment in research and development to international norms.

3. Keep building the skills of a successful and innovative trading nation. Encourage more of our young people into the careers that breed innovation, like engineering, ICT, and science.

4. Encourage more capital to invest in New Zealand. The mixed ownership programme has helped set up a stellar year for our stock exchange. We need to build on that. Capital investment in competitive industries creates sustainable jobs.

5. We need to keep removing red tape and provide certainty to investors, especially in resource industries. That means making decisions quickly and effectively, while also working to improve environmental outcomes.

6. We need to keep building infrastructure to support a growth-oriented country. Great progress has been made in electricity transmission and ultra-fast broadband. Those projects need to be finished. And we need to keep investing in our transport systems for safety and efficiency. That means high-quality four-lane roads in and out of our main centres, resilient highways elsewhere, and quality public transport that people want to use.

Finally – and above all – we need to make responsible fiscal and economic decisions that keep the tax burden low and pay off debt. We need to keep rewarding New Zealanders with efficient public services and lower income taxes than elsewhere. It’s talented, hard-working Kiwis who get out of bed every day that make all this happen. Kiwis strive and succeed because they see the benefits of their hard work. If politicians keep remembering that then New Zealand will truly become a Pacific Tiger.

In terms of the skills referred to in No 3, Joyce also announced yesterday:

“Four years ago we had a highly complicated vocational training system in New Zealand with a total of 39 separate industry training organisations and more than 4500 separate qualifications”, Mr Joyce says.

“ITOs were falling over each other and had signed up many trainees that were trainees in name only. Single employers were in some cases having to deal with a number of ITOs.

“With the latest ITO merger just prior to Christmas, we start this year with only 14 Industry Training Organisations,” Mr Joyce says. “This smaller number of generally larger scale organisations means that they can provide a better service to trainees and employers. There is now, for example, just one ITO for the primary sector – down from seven ITOs three years ago.

The number of qualifications at the vocational level has also been reduced. There were 4610 separate qualifications at Levels 1 to 6 at the beginning of 2011 and this has been reduced by 63 per cent so far to less than 1750 by the end of last year. The current targeted review of qualifications seeks to have the number reduced to around 1300 by the end of this year.

4,610 different trade qualifications was insanely high.

“We had a huge spaghetti of qualifications at sub-degree level in this country,” Mr Joyce says. “It was difficult for learners to decide when and how to study, and difficult for employers to understand the nature and quality of the different qualifications. The targeted review has meant that we have reduced, for example, 213 ICT qualifications to 14, and similarly 69 mechanical engineering qualifications have been reduced to nine.

213 ICT qualifications!!

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21 Responses to “Joyce on maintaining economic growth”

  1. flipper (3,266 comments) says:

    Ahhhhhh…

    The piece that was not deemed worthy by Herald of “equal” billing with Peter Davies (nee Clark?).

    Why choose not to banner it as you did the Davies Fabian Society garbage?

    Suggestions that the piece by Joyce balances the rubbish by Davies are…. RUBB8SH.

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  2. SPC (4,611 comments) says:

    Would people please note that Peter Davis, not Peter Davies, is married to Helen Clark.

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  3. dime (8,746 comments) says:

    “Would people please note that Peter Davis, not Peter Davies, is married to Helen Clark.”

    and that the marriage is 100% legit.

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  4. Reid (15,505 comments) says:

    “and that the marriage is 100% legit.”

    and Peter Davies nee Davis nee Clark, is not a beard.

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  5. flipper (3,266 comments) says:

    The spelling of Davis/Davies makes no difference.
    En passant, why did the marriage occur?
    Who said it should occur?
    Interestant, ne ces pas?

    Being in a grumpy mood today, I assert that they both (if they are two) talk economic crap.

    Anyone believing in the world of Fabian Society is, well, in need of substance testing and counselling.

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  6. flipper (3,266 comments) says:

    This sort of CRAP in the herald will really contribute to economic growth.
    The recall of 9000 small, retail sized bottles, is just that – a sensible precaution.

    But the S F Herald sees otherwise:

    *** The world’s watching you Fonterra

    Protestors outside a Fonterra plant in Colombo, Sri Lanka last year after the August botulism contamination scare. The world is now paying closer attention to Fonterra. AP Photo/Sanka Gayashan

    Herald business editor Liam Dann says the new Fonterra recall needs to be kept in …… etc etc ”

    Why do we need the SIS and the GCSB to keep tabs ion economic saboteurs when they are here at home, in full view?

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  7. SPC (4,611 comments) says:

    The government could be less hands off and return to R and D tax credits. Maybe ACT could remind them of that?

    The government has done nothing to make access to finance easier for small business. They still resort to mortgages on the family home etc.

    4 land highways indicate an obsession with product volume to market (logs and dairy etc), and contradicts broadband investment and a knowledge economy exporting (Xero).

    And as for mining, given our low rate of royalties, the positive impact of discovery would only be in the regional jobs created. But the higher dollar resulting from any large discovery would reduce the return to other exporters and thus mean little positive return overall. So we carry all the environment risk for little gain.

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  8. dime (8,746 comments) says:

    “And as for mining, given our low rate of royalties, the positive impact of discovery would only be in the regional jobs created. But the higher dollar resulting from any large discovery would reduce the return to other exporters and thus mean little positive return overall. So we carry all the environment risk for little gain.”

    bullshit.

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  9. SPC (4,611 comments) says:

    And how high are our royalties compared to others …

    Have you not noted how the Oz mining boom in some regions/states (WA/Q) resulted in a recession in others NSW/Victoria?

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  10. RightNow (6,336 comments) says:

    “Have you not noted how the Oz mining boom in some regions/states (WA/Q) resulted in a recession in others NSW/Victoria?”

    No, but I have noted that despite recession hitting Australia the states that had mineral wealth were less affected.

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  11. labrator (1,691 comments) says:

    The National-led Government is putting a lot of taxpayers’ money into assisting firms and their ideas picking winners.

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  12. tvb (3,937 comments) says:

    He fails to mention that some industries such as gambling and movie making get special treatment from the Government. How does that fit?

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  13. Simon (611 comments) says:

    A true pacific tiger. Just fuck off Statist mong.

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  14. flash2846 (131 comments) says:

    So much good news about progress and it just flies under the media radar. Sad really

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  15. OneTrack (1,953 comments) says:

    “So much good news about progress and it just flies under the media radar. Sad really”

    Or they actively suppress any good news when the “wrong team” is in power.

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  16. Harriet (4,002 comments) says:

    SPC#

    “Have you not noted how the Oz mining boom in some regions/states (WA/Q) resulted in a recession in others NSW/Victoria?”

    That is not WHY it happens.

    [there are other reasons for recessions but I'm going to concentrate on 'State mining vs State mining and recession']

    It happens when the prices of the minerals ect that are mined change in price. NSW mainly mine for coal – if coal drops in price then SOME mines can become too expensive to operate. This can lead to a ‘recession’ but really only in Tasmania, as all other states are reasonably diverse in mining commodities themselves.

    Here is the case with a mine in WA – gold dropped in price to around $900 an oz, yet it cost the mine $850 to get that oz out of the ground – because it is the deepest mine! Other mines in WA can get it out for $500.
    That mine was on the verge of closing down operations till the price recovered, but the price went back up before they had to.

    For States, it’s called not having all your eggs in one basket. The more mining leases available the less chance of a mining recession – Oil, coal, gold & gas can all be mined around NZ. Some mines will be cheap to operate and others more expensive. Some may then close for a year or even a decade while others will operate for the forseeable future.

    Hundreds of mines[claims] in Australia only operate when the price of the commodity is rising, when the price is low they cease operations till it rises again. Sometimes this can be for decades.

    In Australia some states didn’t have the infrastructure[rail wharfs] to handle the output of mines – which then made mines in other states more fessable to operate. That also lead to mining ‘recession’ in some states.

    Government red tape is another – by the time the government signs-off on a mine to be built – the commodity price has dropped – and so the project then gets put on hold till the price recovers. Then there is the damage that Rudd’s ‘mining tax’ had on potential mining operations being built. It stopped them from being built.

    State and Federal governments were the biggest hinderance to aspects of mining in Australia, however they seem to have sorted most of it out – therefor the ‘australian mining market’ is now becoming an ‘efficent market’.

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  17. JeffW (303 comments) says:

    Good that Joyce wants to “keep the tax burden low”. I guess that means steps are being planned to considerably reduce the high burden we face now.

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  18. SPC (4,611 comments) says:

    Apart from the impact on the Oz dollar of the mining exports resulting in lower returns for exporters of other goods and services – esp from populous states like NSW and Victoria – there is also the nationwide monetary policy impacted by the boom mining states placing further downward pressure on these two states.

    It’s almost inevitable that they go into recession while the mining states boom.

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  19. hj (5,674 comments) says:

    “. We need to keep building infrastructure to support a growth-oriented country. Great progress has been made in electricity transmission and ultra-fast broadband. Those projects need to be finished. And we need to keep investing in our transport systems for safety and efficiency. That means high-quality four-lane roads in and out of our main centres, resilient highways elsewhere, and quality public transport that people want to use.”
    ………………..
    He means immigration. Population increase is government policy. The Greens and Labour know this but by ignoring it condone it. By implication the Greens believe Growth is Good.

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  20. berend (1,599 comments) says:

    Wny is it that National gets to talk the talk, and Labour gets to walk the walk?

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  21. Harriet (4,002 comments) says:

    Spc#

    “…..NSW……VIC…..It’s almost inevitable that they go into recession while the mining states boom…”

    You are talking populations of 4 and 5 million.

    They were under performing at the time.

    And the regional cities in those two states at that time -and who are near to mining operations- didn’t suffer from recession. The real problem is their state governments.

    The monetary policy is complicated due to the fact that the GST is raised from wealthy states and divided up with poorer states getting more.That’s fair. But with the mining boom, WA’s GST was not spent in Vic or NSW who were suffering a recession – but SA and Tas ect. That’s not fair if mining was to blame for the VIC/NSW recession. What’s more, the GST collected from VIC/NSW during the recession was also spent in other states.

    However, where I live in QLD 3000 people fly in and fly out to mines – that’s above those who drive. Over 500 work in WA. WA is a 3rd of the size of Australia. More fly out from Brisbane, Townsville, Cairns, ect.

    NSW and Vic would be the same with miners flying in and out. No one here in QLD see’s mining in WA as an issue.

    And State Politicians often whinge about the other States when things go wrong on their patch.

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