Comments on: Tax cuts for leaving us

By: kahikatea

kahikatea — Fri, 25 Jul 2008 07:26:38 +0000

Sam Buchanan Says:
July 25th, 2008 at 9:43 am

> (there’s a study for an FTA with India commencing as well)

India’s a democracy, with a free press. I had almost forgotten you can have a free trade agreement with a country like that.

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By: Sam Buchanan

Sam Buchanan — Thu, 24 Jul 2008 21:43:08 +0000

I was kind of stunned to find that despite the shortage of doctors, the China-NZ FTA had a specific clause allowing NZ doctors to relocate to China.

…and if China isn’t cheap enough for manufacturers, the upcoming Free Trade Agreement with Burma et al will provide an even more ‘cost effective’ place to relocate our jobs to (there’s a study for an FTA with India commencing as well).

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By: rainman

rainman — Thu, 24 Jul 2008 07:49:20 +0000

Astounding. I need a whisky after reading this.

Time to aggressively relocalise, methinks.

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By: Sam Buchanan

Sam Buchanan — Thu, 24 Jul 2008 03:20:34 +0000

“Workers there who earn $5.00 per hour are earning above the national average wage,”

To put it mildly – a couple of years ago this was the wage rate in the garment industry:

“But unions say the 45 dollar-a-month wage of an average factory worker in Sri Lanka is not enough, and it should be higher. ”

“The apparel forum violates the internationally accepted wage rate of two dollars per day or 6000 rupees per month,�? Anton Marcus, Joint Secretary Free Trade Zone and General Services Employees Union, claimed.

http://www.lankabusinessonline.com/fullstory.php?newsID=1625076867

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By: frog

frog — Thu, 24 Jul 2008 03:01:14 +0000

Gordon Campbell has got this story too: the Killing of Local Manufacturing. Check out especially the bit at the end about tax cuts for petroleum miners.

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By: uk_kiwi

uk_kiwi — Thu, 24 Jul 2008 01:06:18 +0000

Surely now that interest rates are in the beginnings of a lowering cycle due to economic weakness, the dollar will likely fall to a more reasonable level, which will make exporters more viable, tax breaks or not.

Although imports like petrol will skyrocket… Swings and roundabouts!

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By: Strings

Strings — Wed, 23 Jul 2008 21:57:45 +0000

But all that manufacturing pollution goes away!

It is VERY easy to build a garment factory in Sri Lanka (for example). The land is cheap, construction costs affordable, machinery the same as it’s all imported. There are fewer restrictions on zoning, etc., as the local view is to have the work-place close to the workers. The NIMBY population is small, and overwhelmed by the ‘gizagoodjob’ population.

Workers there who earn $5.00 per hour are earning above the national average wage, and very happy to have achieved a quality and standard of life that their parents couldn’t aspire to.

Why would a sensible businessman go through the agony of “NZ MADE” against the benefits of Sri Lanka? This tax-break is T I N Y compared to the true off-shore value received and benefits donated.

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