The exchange rate hit a two year high on the Trade Weighted Index (TWI) last week. Our consistently overvalued exchange rate continues to be an issue for the competitiveness of manufacturers and the wider tradable sector, and we need to investigate ways to bring it back to a sustainable level over time, say the New Zealand Manufacturers and Exporters Association (NZMEA).
NZMEA Chief Executive Dieter Adam says, “The exchange rate hit a two year high on the TWI last week, and while it has dropped back less than a cent since, it remains at a level that damages the competitiveness of our manufacturers and tradable sector.
“This is not a new issue – our exchange rate has been consistently overvalued over the last decade, the average of which has been over 10 percent higher than the previous two decades in TWI terms. This does not, however, mean we should accept the current level as inevitable. We need to see some fresh thinking on how to create conditions that can give our economy a more sustainable exchange rate over time, from both the Reserve Bank of New Zealand (RBNZ) and Government.
“A competitive and fairly valued exchange rate is a key component of ensuring our productive manufacturing and exporting sectors can grow over time, bringing quality jobs and much needed export income. The failure to make ground on the Government's target of improving exports to 40% of GDP has no doubt been hampered by the consistent overvaluation.
“In terms of the RBNZ’s OCR decision tomorrow, we believe holding the current rate is the right move. While we are starting to see signs of an inflation uptick, moving rates up prematurely, as we saw in 2014, would add additional pressure onto our exchange rate.
The exchange rate is currently around 4% above what the RBNZ forecast for the upcoming March quarter.” Says Dieter.
| An NZMEA release | February 8, 2017 ||
The New Zealand Taxpayers’ Union says the $23 million windfall return to internet billionaire Peter Thiel in a corporate welfare sweetheart deal with the Government-owned New Zealand Venture Investment Fund shows why the Government’s programmes of corporate welfare should be shut down as part of this year’s budget.
Jordan Williams, the Executive Director of the Taxpayers’ Union, says:
“This is exactly what we have been accusing the Government of, and Steven Joyce has been denying, for many years. If corporate welfare deals go sour most of the costs land on taxpayers. This most recent example shows that even when ventures do well, most proceeds go to the private party. No wonder people label it ‘crony capitalism’.”
“Our most recent report on corporate welfare shows that the current Government is spending more than ever on these sorts of deals and subsidies. It was $1.36 billion in last year’s budget alone. If that money was used to lower company taxes, the 28% rate could be reduced to 22%. That would mean a boost to all Kiwi businesses, and not just those cherry-picked by the likes of NZVIF and Callaghan Innovation.”
“Politicians and bureaucrats in Wellington need to stop trying to outsmart people like Peter Thiel with our money. They’re on a hiding to nothing and this deal shows why.”
“Criticism of Mr Thiel for accepting corporate welfare misses the point – what businessman would turn down free money? The responsibility lies squarely with the National and Labour Parties which set up these corporate welfare schemes. Peter Beck, probably New Zealand’s largest corporate welfare recipient through his “Rocket Lab” venture, is even a nominee for the NZ Herald’s New Zealander of the Year. Rocket Lab is another taxpayer funded venture competing with Silicon Valley billionaires.”
Jim Rose’s report for the Taxpayers' Union on corporate welfare, Welfare Bums: Adding Up the Cost of Corporate Welfare in the 2016 Budget is available at http://www.taxpayers.org.nz/welfare_bums
| An NZTaxpayers' Union release | February 8, 2017 ||
Exporters Must Persuade Government to Start Backtracking.
Russia’s ban on importing New Zealand beef on the grounds of discovering additives in it has in fact all the characteristics of a reprisal for participating in the United States-invoked embargo.
New Zealand is viewed as an easy target as the Russians now start retaliating against those nations which supported the blockade.
The embargo mainly involved the United States and the EU. But anxious to appease the United States New Zealand deliberately demonstrated “solidarity” with the US, in the words of former premier John Key.
In return for this New Zealand took pole position in the now defunct Trans Pacific Partnership Treaty and as a special reward Auckland was chosen as the venue for participants to sign it.
There are indications that Russia will use several hygiene scares in recent years to choke off supplies of New Zealand dairy products.
At one time Russia was considered as New Zealand’s prime emerging market. But since the 1980s Russia has been supplanted by Asia.
It is here though that the US embargo on Russia did its most serious damage to New Zealand trade.
This occurred when France was prevented from sending its milk to Russia, along with milk exports from several other EU nations.
The result was the EU milk surplus now found its way to China, severely depressing demand for New Zealand milk.
New Zealand’s position in the US-led blockade of Russia will remain a problem for some years to come even though the embargo itself has now become moot under President Donald Trump.
Commodity exporters are trying to cool the ardour of New Zealand legislators in the matter of supporting the embargo.
This will allow them to mend fences with the Russians.
One advantage here will be the resignation at the end of last year of New Zealand premier John Key, known to be an ardent supporter of former United States president Barack Obama.
The public and indeed New Zealand’s legislators in the matter of the long-running embargo have something in common in that they have both been unaware of the consequences of participating in the blockade.
In France, in contrast, the consequences are well understood. Russia’s president Putin (pictured) deliberately called up well-publicised bulldozings of French produce found to have entered Russia via bills of ladings sourced in its old African colonies.
France, under pressure from the United States, was forced to abandon its showpiece advanced technology export which was its Mistral Class vessel for Russia’s navy.
Combined with the loss of its Russia disposal market for milk products the embargo is one of the factors behind the elimination of France’s ruling Socialist Party from any contention in this year’s presidential election.
| From the This email address is being protected from spambots. You need JavaScript enabled to view it. | Wednesday 8 February 2017 ||
RS Components has launched a new, low-cost, fast and accurate robotics solution. Easy to programme – even for those who have never programmed a robotic arm before – the R12 and R17 benchtop robots from ST Robotics are capable of undertaking the most complex tasks, including product testing, sample handling, parts handling, machine feeding, welding, spraying and sound measurement.
Both models are supplied with controller, teach pad/pendant, all cables, connectors, RoboForthII and RobWin7 software and comprehensive manuals and, as a result, are ready to use immediately out of the box. Their high efficiency motor drives, solid machined-alloy construction and industrial-standard quality deliver outstanding accuracy and reliability, making them suitable for 24/7 operation without failure.
The R12 model comes in five- or six-axis variants, offers a 500 mm reach and is capable of handling a 1 kg payload. The larger R17 model, is a five-axis robot, with a six-axis option, and can handle a 3 kg payload over a reach of 750 mm. In total RS will stock 38 standard lines comprising the two different robot arms, several gripper formats and actuation methods (pneumatic/electric) and numerous optional accessories, including an Android/Bluetooth teach pad, vacuum grippers and USB and TCP/IP converters.
With many years’ experience in the domain, ST Robotics boasts that its robots’ high intelligence finds them niches in the most complex tasks, where they will do most of what their big brothers do, much that they cannot do and at a fraction of the price.
RS is providing large amounts of supplementary support in the form of compatible and complementary product listings, tutorials and bespoke entries within the highly popular DesignSpark section of its website. For more information on ST Robotics products available from RS visit http://smarturl.it/STROBOTICS.
| An RSComponents release | February 7, 2017 ||
Alibaba Group has opened a new office in Melbourne, with a remit to oversee sourcing and operations in both Australia and New Zealand.
The new office is Alibaba's first expansion into the region, with personnel positioned to source and promote products, which are becoming increasing popular with consumers in China and South East Asia, from both countries. Alibaba will also use the new office to better facilitate the supply of goods to markets in Asia in which it operates, having also signed a memorandum of understanding with Australia Post to improve logistics between Australia and China. It is also understood that the relationship will be used to develop an Australian shop on the Lazada marketplace in South East Asia, of which Alibaba are the majority shareholder.Cross border ecommerce a priority for Alibaba
Alibaba's new office in Melbourne is similar to other offices they have opened around the world in order to facilitate better sourcing of products that Chinese consumers are increasingly demanding. For example, Alibaba's office in London is used for the same purpose, attracting both suppliers and retailers to use its services to sell products into Asia via its platforms.
In the last few years, both Woolworths, Metcash and Costco, alongside numerous other retailers, have all started selling products on Alibaba's Tmall platform in China, with cross border ecommerce set to grow further in the future. Something that Alibaba CEO, Jack Ma, who was present in Melbourne, is keen to promote.
| A SupplyChain release | February 7, 2017 ||
Prime Vision has launched a new strategy for its regional division in Australia and New Zealand with a specific focus on the Postal and Logistics industries.
According to Prime Vision: “The new strategy responds to the challenges faced by Postal and Logistics operators in the region, providing a range of solutions to help operators improve utilization of their assets, providing tracking of individual items from first mile to last mile, increasing parcel processing capacity cost effectively, and providing Consumers more choice for delivery.”
Prime Vision added that it is offering a new portfolio of solutions to deliver the new strategy including:
• Asset tracking for cages, vehicles and items within cages.• Item tracking, for first mile to last mile, using printed electronics for identification instead of barcode, stamps or other indicia.• A fully connected Internet of Postal Things (IoPT), platform built on the latest architecture technology, connecting physical ‘things’ used in the operation, with gateways to enterprise systems.• Autonomous and assisted sorting solutions, which combine Prime Visions recognition technology with robotics to sort parcels from point-to-point using mobile robots.• Smart mailboxes and home parcel lockers with secure access management solutions to enable controlled access by postal workers and confirmed acceptance by Consumers.
Prime Automation established its office in Sydney in 2011.
The Prime Automation division will change its name and be known as Prime Vision Australia, and existing contracts for the Food and Beverage industry will transfer to a new regional service provider.
| A Prime Vision release | February 7, 2017 ||
Finance Minister Steven Joyce will appoint current Deputy Reserve Bank Governor Grant Spencer as the Acting Governor of the Bank for six months, following the expiry of current Governor Graeme Wheeler’s term on September 26 this year.
"Mr Wheeler's term as Governor expires on September 26, three days after the general election, and he has decided not to seek reappointment," Mr Joyce says. "Following advice from the Cabinet Office and consultation with Cabinet, I have decided that the most appropriate course of action would be to appoint an acting Governor for a six month period to cover the post-election caretaker period. This will give the next Government time to make a decision on the appointment of a permanent Governor for the next five year term.
"I have decided to appoint Mr Spencer as acting Governor from 27 September 2017 to 26 March 2018, on the advice of the Reserve Bank Board of Directors. The Government is pleased to have someone of his calibre to move into the role. He is a highly experienced member of the Bank’s Leadership team who will provide stability and continuity through this caretaker period prior to the appointment of the new Governor."
Mr Joyce and Mr Spencer have agreed that there will be no change to the Policy Targets Agreement for the period Mr Spencer will be acting Governor.
Mr Spencer has advised the Government that he won't be applying for the permanent role, and intends to retire following his period as acting Governor.
The Bank has had one previous acting Governor. Former Deputy Governor Rod Carr was appointed in an acting capacity for the pre-election and caretaker period around the 2002 General election, following the resignation of Governor Brash.
Mr Joyce thanked Governor Wheeler for his service to the Bank.
"The Governor has performed his role calmly and expertly during a highly unusual period for the world economy. I thank him for his service up until now and for the remainder of his term as Governor," Mr Joyce says.
| A Beehive release | February 7, 2016 ||
Cadpro's Matthew Weakes commenting on the news that Carl Bass has resigned as CEO of Autodesk:"Carl has been fantastic as a leader leaving Autodesk in a very good position in each of the markets it operates in. With a very hands on practical and pragmatic approach he has overseen the creation of such outstanding facilities as Pier 9.
As a ‘maker’ he really understands the issues manufacturers face, he even directly helped us with getting a post processor working for machine he has at home that one of our customers also had!
He will be missed."
Matthew
Matthew Weake BE(Mech)(Hons)Mechanical & Manufacturing Sales
CADPRO Systems LtdPhone: +64 9 302 4028Mobile: +64 274 820 845Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Science and Innovation Minister Paul Goldsmith has today announced the reappointment of Claire Robinson, Brett Hewlett, and Suse Reynolds to the Callaghan Innovation Stakeholder Advisory Group.
“The reappointment of Ms Robinson, Mr Hewlett, and Ms Reynolds recognises the valuable skills and insights they all contribute to the advisory group, as well as their work to ensure that Callaghan is connected and engaged with its stakeholders,” says Mr Goldsmith.
Callaghan Innovation is the government agency tasked with growing New Zealand’s economy by helping business succeed through technology.
The seven-member Stakeholder Advisory Group provides independent, expert advice to the Callaghan Innovation Board. It includes some of the most well-respected people involved in New Zealand innovation.
Professor Robinson, Mr Hewlett and Ms Reynolds have been reappointed for further two-year terms.
Ms Reynolds, founder and Board member of Angel HQ, has also been appointed as the chair of the Advisory Group.
“Suse’s extensive networks and in-depth experience with New Zealand’s angel investment community stand her in strong stead to lead the Advisory Group, and I welcome her appointment as Chair,” Mr Goldsmith says.
More information about the Advisory Group can be found on Callaghan Innovation’s website.
| A Beehive release | February 7, 2017 ||
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242