Protectionism in Queensland

Stuff reports:

Exporters are disappointed at Queensland’s tough crack-down on trade that is likely to take effect on Friday.

The Australian state’s Buy Queensland First policy favours local suppliers even if they charge up to 30 per cent more than an outside bidder.

Export NZ executive director Catherine Beard said Queensland Premier Annastacia Palaszczuk’s policy was “disappointing” and would disadvantage both New Zealand and Australian exporters.

“It’s not a good policy. If the best deal is coming from outside that’s what they should be doing for Queensland’s people in terms of getting best value for money.”

Protecting industries that can’t compete doesn’t actually help them. The wine industry in NZ used to be protected and because of that they produced cheap wine for under $10 a bottle as tariffs meant imported wine would always cost more than that.

Once was removed, people predicted the NZ industry would die unable to compete with cheap imports. Instead it flourished as it then focused on quality, and has now become a major export earner.

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