Sunday, 20 April 2008

F&P: NZ abandoned

It seems that Fisher and Paykel has linked their moving of manufacturing overseas with the recently signed free trade deal. Although to be fair they have just said this is one of many factors that have influenced their decision.

I never thought I would say it, but I actually agree with what Cullen said in reply. The free trade agreement does not effect the manufacturing environment in New Zealand, especially for a global exporter like F&P (who are competing in a global environment with Chinese labour anyway). What has been hurting is the unfriendly business environment of New Zealand created by a high exchange rate (a contribution of monetary and fiscal policy) and high tax. I don't think it can be said loud enough that the FTA with China is not a cause (it is a good thing and is suffering enough bad publicity as it is).

It is unfortunate for the government that the F&P decision comes just after the FTA was signed. It makes perfect ammunition for NZ First and takes the gloss off the FTA, especially in the xenophobic attitude that seems to be effecting middle New Zealand currently.

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