THE MAPP REPORT with local MP Dr Wayne Mapp
Economy on the move
Dr Wayne Mapp is the local Member of Parliament for North Shore. First elected in 1996, he is currently the Minister of Defence and Research Science and Technology, and Associate Minister for Tertiary Education and Economic Development. Electorate Office contact details: 15 Anzac Avenue, Takapuna Phone 486 0005.
The economy is clearly recovering from the effects of global recession.
The majority of the “For Lease” signs that appeared all over Takapuna in early 2009 have now disappeared, and a number of new businesses have opened.
Terry Hoskins, from Enterprise North Shore, has commented that North Shore businesses have weathered the economic storm, although they are still feeling the effects of tough conditions.
One Takapuna business which has weathered the storm is Café Melba, on Hurstmere Road. The Takapuna branch opened in 2007 and has been so successful that the company is opening two more Auckland CBD sites this year.
Further north, yoghurt-maker EasiYo has recently opened a brand-new facility in Albany, capable of running four production lines and storing 1000 pallets - three times their current production. Growth over recent years has been running at 20%. Looking three to five years ahead, the company aims to achieve sales in excess of $60 million, in more than 20 countries.
The growth of local businesses such as Café Melba and EasiYo is what will lift New Zealand out of the recession and establish the recovery.
It is now a year since the Government took urgent action to soften the effects of the global recession. The measures included cutting tax, bringing forward public infrastructure spending and maintaining a sizeable fiscal stimulus. It is clear that the economy has performed better than most people expected and is now starting to grow again.
The economy is the Government’s top priority this year, but ultimately it is Kiwi businesses that will generate more jobs, bigger incomes and higher living standards for New Zealanders. Our policies are designed to act as a catalyst, removing barriers to growth and giving business owners support to grow. The introduction of the 90-day trial period is one example of a growth-driven policy, encouraging businesses looking to take on new employees.
The ingredients for a strong recovery are now in place: domestic interest rates are at historic lows, unemployment has fallen to 6% and Fonterra is predicting a good payout of $6.60/kg of milk solids, which will inevitably bring benefits to the rest of the New Zealand economy. Internationally the economies of our major trading partners China and Australia continue to grow.
In his 8 July weekly report, BNZ chief economist Tony Alexander mentioned some of the positive signs in the market compared with the same time last year – building consents for new dwellings have risen 28%; car registrations are up by 35%; foreign visitor numbers have risen 3%.
His report suggests that domestically-driven growth has been more hesitant than export-driven growth, compared with previous recoveries. This is reflected in our overseas current account deficit, which is the lowest in twenty years, meaning New Zealand is earning more relative to what we spend internationally.
In short, there is more money coming into the country than before. A new Auckland Council which will further drive growth will soon be in place, and the Rugby World Cup is estimated to inject $410 million into the Auckland economy over the next year.
Our economic prospects are the best in several years, and with the help of growth-driven Kiwi businesses, can only get better.
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