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Pay parity with Australia 'unrealistic' - Bollard

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Sun, 07 Feb 2010 3:23p.m.

Reserve Bank governor Alan Bollard says it is unrealistic to expect New Zealand to match Australia's income and wealth.

Dr Bollard made the comments on TVNZ's Q&A programme.

"I don't think we can catch up with Australia," said Dr Bollard. "Australia is a most unusual country. Australia has been blessed by God sprinkling minerals across the top of the surface in very easily accessible areas and places where it does not annoy people to mine them. China is there buying all that.

"It's not rocket science - they have run their economy well, but we just don't have those advantages."

The Prime Minister's office says the Government is sticking with its goal of matching Australia by 2025.

John Key is expected to signal changes to the tax system when Parliament resumes on Tuesday.

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Comments [6]

Jim
08 Feb 2010 11:47a.m.

Wgtn
Where do you get your crap from. Come out into the country and see what the farmers profits margins are befor you post. Typical suit and tie employee. not all businesses can afford to pay well like Govt Depts with our taxes!!!

Wgtn
07 Feb 2010 7:10p.m.

LOL hello Alien, not you again... the man that everyone makes fun of because 9 times out of ten you change your opinion on a whim.

Business profit margins in New Zealand are much higher than in Australia.. in fact look at the food industry we have had the second highest increase in prices throughout the entire world.

Business could actually lower its profit margins and still be fine, particularly in the food and petroleum industries.

If you believe in National you believe in their promise to gain pay parity by 2025.

However if you do not believe National and believe they are full of it you should just say National are full of it.... is that what you are saying alien?.

"Correct", is correct in the sense that we do have advantages that Australia doesnt have, just as they have some that we dont.

As for tourism, well Key has made little impact in that area so far, and ships that dock for a day do not generate anywhere near the business that tourists travelling the country for a week or more does.

Alien, do you believe that the National party are therefore liars? lol I know how much you love Key... but that is esssentially what you just pointed out... that you believe our Prime Minister is full of it.

However I disagree with you that tourism is our only possible saviour, as it is an industry that is always hit hardest during a recession, it may be a good money spinner "at times" but it is also extremely volatile. we should be relying on industries that dont vary so much with market fluctuations.

You're always abusive in your comments arent you alien, but I know just how uneducated you really are, by the way Agriculture accounts for 12% of the labour force and is New Zealands Biggest industry.. bigger than tourism even and fluctuates far less.

Tourists that come here and stay in back packers hostiles etc and eat MacDonalds actually contribute little to the New Zealand economy but make up the bulk of the tourists who do visit.

Andrew
07 Feb 2010 6:44p.m.

So, Correct, supposing you are in business. Given the government’s objectives, outline your plan for achieving them. That’s the approach New Zealand needs, not contemptuous defeatism.

Alien
07 Feb 2010 6:10p.m.

ah, tourism is one of our biggest earners, and having the PM hold that portfolio and working on it is needed. I suggest you educate yourself on just how much tourism brings into NZ yearly and also how many jobs rely on tourism. One in ten New Zealander's are directly/indirectly employed by tourism in this country. And actually there is still the money around for tourism, which is shown by the increasing cruise ships coming to NZ and a return in visitor numbers to NZ. Fontera actually pay their farmers rather well. And actually you are the one that is wrong. NZ will not gain pay parity with Australia. It would be like a fijian stating that fiji should have pay parity with NZ. Australia is a far wealthier country than NZ and we need to reach common sense instead of pretending that we can gain pay parity.

Wrong!
07 Feb 2010 5:09p.m.

Correct, you're a businessman arent you... it scares you having to marginlize your profits to pay people a decent wage doesnt it.

We have advantages that Australia doesnt, not many countries have minerals scattered everywhere, not many countries have a substantial agrarian economy like our own.

We have companies like Fontera and Enza which are multi Billion dollar operations working off the back of hard working farmers and their employees.

Where as our pissy little Prime Minister is focusing on Tourism, when their isnt the money around that their used to be for luxuries like overseas travel.

Focus on realist goals, not unrealistic ones like John Key is setting himself, we went through a sharp recession I would expect the tourism industry to take a year or two to get back to business as usual.


Correct
07 Feb 2010 4:11p.m.

Finally there's someone realistic enough to say this.

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