He is wasting his time. Not because he shouldn’t be concerned, because he should. We should all be concerned.
But the answers he seeks are already readily available.
He asks about four main things: the regulatory environment, energy costs, foreign owner indifference, and anti-competitive behaviour from the supermarkets.
The website Newsroom wrote a solid piece about all this several weeks ago in which it was broadly concluded the troubles in Hawke’s Bay have been coming for a decade, so some late, breaking alarmism via yet another committee addresses nothing.
Costs in this country are too high. I refer you to Paul Conway's speech last week to a bunch of financial operators. We are unproductive and have been for years.
Supermarkets have indeed played a part. The home brand scenario damaged the more premium brands and Wattie's etc have suffered because of it.
Now, is that anti-competitive? Or offering more competition? Does the punter want choice and price range? I would have thought yes.
On the energy costs, Wattie's and Heinz have both spoken to this. Our energy costs are ruinous. Gas, or lack of it, has killed a lot of manufacturing. The Greens might like to ask themselves why they got obsessed with solar panels and banned gas before there were enough solar panels to cover the energy gaps.
The old regulatory environment is an interesting one. Labour and Nicola Willis have jawboned rules and regulations and watchdogs and Commerce Commission investigations, but to what avail? Nothing has changed, which either means there is nothing to change, or they are useless.
Foreign owner indifference, I would suggest, that sounds a bit xenophobic. Yes, I know what he means – could a massive player in Detroit cut ties without losing sleep in little old New Zealand? Sure.
But no one who invests and runs businesses does so with indifference.
Between the dumping, the cheap stuff consumers prefer, the size of our market, and the ruinous cost of energy, it's all there as a combustible recipe to blow up a lot of business models.
Peas in a bag and peaches in a tin are the victims. The inquiry is not needed.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
The website Newsroom wrote a solid piece about all this several weeks ago in which it was broadly concluded the troubles in Hawke’s Bay have been coming for a decade, so some late, breaking alarmism via yet another committee addresses nothing.
Costs in this country are too high. I refer you to Paul Conway's speech last week to a bunch of financial operators. We are unproductive and have been for years.
Supermarkets have indeed played a part. The home brand scenario damaged the more premium brands and Wattie's etc have suffered because of it.
Now, is that anti-competitive? Or offering more competition? Does the punter want choice and price range? I would have thought yes.
On the energy costs, Wattie's and Heinz have both spoken to this. Our energy costs are ruinous. Gas, or lack of it, has killed a lot of manufacturing. The Greens might like to ask themselves why they got obsessed with solar panels and banned gas before there were enough solar panels to cover the energy gaps.
The old regulatory environment is an interesting one. Labour and Nicola Willis have jawboned rules and regulations and watchdogs and Commerce Commission investigations, but to what avail? Nothing has changed, which either means there is nothing to change, or they are useless.
Foreign owner indifference, I would suggest, that sounds a bit xenophobic. Yes, I know what he means – could a massive player in Detroit cut ties without losing sleep in little old New Zealand? Sure.
But no one who invests and runs businesses does so with indifference.
Between the dumping, the cheap stuff consumers prefer, the size of our market, and the ruinous cost of energy, it's all there as a combustible recipe to blow up a lot of business models.
Peas in a bag and peaches in a tin are the victims. The inquiry is not needed.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
2 comments:
Steve Abel hasn't raised the most critical question about the future production of Watties Tomato Sauce ?
It's got to be Watties !
I will "politely" refrain from an acerbic retort to the Author of this article.
One factor/comment made - was
[quote] -" Our energy costs are ruinous. Gas, or lack of it, has killed a lot of manufacturing" [end quote].
Sorry but his is ridiculous - how come when the increase in power costs became known, what did the Foreign Owner's of Tiwai Point (Rio Tinto) do - "went on a cost cutting exercise" and always came off with an end result, to their betterment.
So why did the Management of Wattie's, Hastings not do the same?
So fingers are pointed - the end result is the many people of Hawke's Bay & elsewhere who have over years past grown produce, under contract for Wattie's, now have to look at other options for the land they have, that may never see another crop planted.
Also, Mike, when you start to "dismantle production", why did Heinz then (threaten) all those who grew Peaches for them, who where told to cut the trees down - I think you missed that one.
I wonder if that 'threat' has been made to them as well?
Also Mike, you need to visit either New World, Pak & Save & 4 square and see how much product is imported - product that we have produced for years - Wattie's issues, Mike, Management ineptitude over many years.
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