Oh dear, it must be keeping him up at night. Despite being worth over $20 billion, Zuru billionaire Nick Mowbray gave an interview with Newstalk ZB's Mike Hosking today telling him that he's being made to feel poor by the Trump tariffs. Mowbray says “it’s hard to say we’re not worried” about the US administration’s “chaotic” policy decisions. “We’ll ship about $2 billion worth of goods to the US this year. So, at that run rate, that makes our tariffs worth about $3 billion at the moment.”
First, how was this interview all jacked up? Well, everyone knows everyone on this Moana-style island, which is why, it seems, all the good jobs go to the well-connected. Of course, Mike Hosking's wife, Kate Hawkesby, is the sister of the husband of the daughter of the second richest man in New Zealand, Graeme Hart. Got it? So the family connection is that the Hoskings' nephew is working for a guy called Nick Mowbray, the Zuru founder, in the United States. Now we wouldn't want him being collateral damage in this "hysterical" (to quote Winston Peters) Trump tariff spat, would we? And have a Hart thrown onto the heap of young disenfranchised out-of-work Americans.
So back to solving the awful financial problem of Nick Mowbray's $3 billion tariff bill. Since Nick now lives in Auckland, how about relocating all your Chinese factories to NZ, in which case your tariff bill would drop from $3 billion (145% of $ 2 billion) to $200 million (10% of $2 billion), which is essentially small change. That way, our Kiwi expat friend Nick, you could save $2.8 billion per annum, create amazing manufacturing jobs in Aotearoa, not to mention multi-billion levels of investment in capital which the country so desperately needs. Or will you shaft NZ and keep your factories in China, as well as hold most of your investments overseas? And then whine to your mate Mike Hosking that its so unfair you're having to pay the US government $3 billion in tariffs on your Chinese (not NZ) exports? Just saying.
So back to solving the awful financial problem of Nick Mowbray's $3 billion tariff bill. Since Nick now lives in Auckland, how about relocating all your Chinese factories to NZ, in which case your tariff bill would drop from $3 billion (145% of $ 2 billion) to $200 million (10% of $2 billion), which is essentially small change. That way, our Kiwi expat friend Nick, you could save $2.8 billion per annum, create amazing manufacturing jobs in Aotearoa, not to mention multi-billion levels of investment in capital which the country so desperately needs. Or will you shaft NZ and keep your factories in China, as well as hold most of your investments overseas? And then whine to your mate Mike Hosking that its so unfair you're having to pay the US government $3 billion in tariffs on your Chinese (not NZ) exports? Just saying.
Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at Auckland University. He has previously worked at the Reserve Bank, Oxford University, and the London School of Economics. He runs the blog Down to Earth Kiwi from where this article was sourced.
9 comments:
What you're suggesting is exactly what Trump's tariff agenda is all about...bringing manufacturing jobs back to the USA - away from China, who heavily subsidises the factories, giving them a huge unfair advantage over markets like AU, NZ, USA etc who don't subsidise their company's and yet expect them to compete against the likes of China.
Basically Trump has levelled the playing field for a kiwi company - now all that needs to happen is for Mr Mowbray to realise Trump has given him an opportunity to be a hero for NZ manufacturing....maybe he could set up somewhere like Ruapehu?
(Assuming the Green/Labour party policies of killing off reliable energy production haven't resulted in unreliable energy production for a town sitting on the edge of a geo-thermal wonderland....oh but they did.)
And the canny Southlander Peter Beck took his Rocket Lab to USA to join the very big Space fraternity and I guess NO tariffs at all.
There's so much wrong with MacCulloch's little rant that I'm surprised he has the nerve to call himself an economist.
He will undoubtedly keep his factories in China, invest overseas and continue to tell Kiwis how they just need to work hard and apply for the good jobs. The ones in China. Oh wait, China is protectionist about immigration, so cross off ever working for him.
Unless you get to make him a coffee on minimum wage one day.
Speak out Jones Boy ...
Mr Mowbray could go into cahoots with the indigenous people of NZ. Imagine that!
I'm dumb-founded that "The Jones Boy" classifies Professor MacCulloch's reasoned article as a "rant",and, further he is "surprised" the prof has the "nerve to call himself an economist". Of course, "The Jones Boy" fails (or lacks the economic competence) to counter-argue the reasonableness of the professor's tongue-in-cheek but helpful suggestion that will solve Mowbray's dilemma.
I don't begrudge Mowbray his success, but you will find that the determinate factor in "good" versus "bad" policy proposals, whether domestic or international, is generally the effect they have on billionaires like this guy. The job of the MSM (perhaps someone like Hosking) is to convince the rest of us that what is good for the billionaires is good for the rest of us too.
I'm bound to add that a very bright and successful young Indian software professional has just returned to NZ from USA [Dallas Texas] because there is no work for him in USA.... Reckon we don't really know what its been like "on the ground" in USA over recent years.... All gone to China. Well...... even Trumps MAGA car has "made in China" on it!!!!!
Well, jobs will come to NZ where workers put in their 30 hours per week (accounting for the multiple tea breaks and long lunches) and work 1/3 as hard as their Chinese counterparts.... Kiwi workers would not last five minutes working in a Chinese factory.
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