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Thread ID: 66404	2006-02-21 19:22:00	Oh no our OECD ranking is only 22	sam m (517)	PC World Chat

Post ID	Timestamp	Content	User
432635	2006-02-22 01:30:00	I am well aware of what improving productivity is meant to mean, and have been since my early days at Joseph Lucas in the 50s. Now that was a company light years ahead of the rest when it came to man-management relations, improving productivity through shop floor/staff involvement, working directors many of whom had come up from the shop floor, and so on. They had never had a strike in all their years in existence.....until I joined them.. :). No, I tell a lie, there had been a short lived draughtsmans strike a year or two earlier. These days the words 'productivity' and 'flexibility' tend to be buzz or jargon words bandied about usually by 'business leaders' or the BRT, by those who have never been a 'worker' :)	Terry Porritt (14)
432636	2006-02-22 01:39:00	These days the words 'productivity' and 'flexibility' tend to be buzz or jargon words bandied about usually by 'business leaders' or the BRT, by those who have never been a 'worker' :)Don't forget some politician's as well e.g. Helen Clark.;)	KiwiTT_NZ (233)
432637	2006-02-22 02:11:00	Don't forget some politician's as well e.g. Helen Clark.;) That's right, she wouldn't have the foggiest idea of what the nitty-gritty of productivity is about or means, or how in any situation it could be improved. A few years ago all the politicians were rabbiting on about Total Quality Management, it was the then current buzz word that was going to make this country no.1 in the OECD. None of them had a clue about what it meant! Around the same time or a little later we had the 'Corngate Scandal', minister Hobbs again was rabbitting on about contamination and zero tolerance etc etc, quite obviously knew absolutely nothing about QA and statistical sampling methods , to her at that time, (she learned a bit later on) it was all absolute. The fact is, once one has mentioned Fisher & Paykel (as it always is by politicians), the brain begins to dry up in trying to think of manufacturing engineering firms, outside of dairy/agriculture. Try talking of productivity increase to shop assistants, or nurses, or MacDonalds part-time employees :)	Terry Porritt (14)
432638	2006-02-22 02:28:00	Product or Service Made / Lower Wages = Higher Productivity (i.e. higher profits) - According to Business I much prefer this model below Raw Material + Better Skills = Higher Product or Service Price (i.e. higher profits) Lowering wages is easier to do than increasing skills. Witness the relocation of jobs to China, India, etc. If business is run by accountants, this is what they see. If business is run by visionaries, then the other is the better business model.	KiwiTT_NZ (233)
432639	2006-02-22 03:28:00	Mind you. I have no idea what the answer should be, it is easier to criticise :) I'd go along with what everyone has already said, and at the end of the day quality of life must come first IMHO. At one time there were those that had visions of NZ aspiring to become the 'Switzerland of the Pacific', with small high value - high tech precision manufacturing in mechanical and electronics products, for which people would come beating a path to our door! That vision has all but disappeared. There is all this talk of 'growth', without 'growth' really being analysed or defined. Growth is the panacea for all our ills :p More cars? More retail sales of Chinese imports? More babies? More immigrants? More house building? More savings? Cut down and sell more trees? More unemployment to keep wages down? More employment to bring in greater tax revenues? Is small beautiful, or is big beautiful? Do we want more growth, whatever that means?	Terry Porritt (14)
432640	2006-02-22 05:36:00	I think the probablem is that 87% (or is it 97%, i know a least 87%) of NZ businesses have a staff of 5 or under. Now that doesnt allow for much management if you ask me. $30K avg wage in a shocker, I couldnt live on that!	SolMiester (139)
432641	2006-02-22 20:54:00	Product or Service Made / Lower Wages = Higher Productivity (i . e . higher profits) - According to Business I much prefer this model below Raw Material + Better Skills = Higher Product or Service Price (i . e . higher profits) Lowering wages is easier to do than increasing skills . Witness the relocation of jobs to China, India, etc . If business is run by accountants, this is what they see . If business is run by visionaries, then the other is the better business model . Fine sentiments which I agree with . Unhappily most consumers world-wide don't . Just consider the posts on this forum looking for the cheapest pc/printer etc . Have a look at the amount of clothing in the Warehouse/Postieplus etc compared with boutique quality shops . People want a good deal and it has to be said that much of the manufacturing coming out of Asia is good quality . And cheap . So the puzzle is to find a high quality line of products - eg software, which is produced only by New Zealand and which wealthy consumers will pay for . We cannot compete with Asia or India so we have to be different . There are people who will pay high prices but only if they want what you've got .	Winston001 (3612)
432642	2006-02-22 22:04:00	It is a conundrum. What is being overlooked to an extent, is that all the traditional manufacturing western nations are complaining about 'losing jobs' to China, and that they are unable to compete. Yet our position relative to other western OECD nations has declined dramatically. Since we do not have a high-tech manufacturing base, comparable in virtually any way to such countries as US, or Germany or almost any other EU country, then no amount of talk about "workforce productivity" or "labour flexibility" is going to make any significant difference, except to depress our average wage rates even more below that of other OECD countries. This is not to deny that there are some small niche firms who are high tech, and who are doing a good job, but there are not enough to contribute significantly to the countries earnings, or to affect average wage rates. And, not only that, but, Douglas and the New Right effectively killed off many small burgeoning high tech firms 20 years ago, which could well have helped us to become a Switzerland. Whilst No.8 fencing wire may have served well in the past, we do not have a traditional background of high tech, high precision, R&D either industrial or scientific in any way comparable with other western nations which could be used as some sort of spring board into the future. Growing pines and sheep and cows is not going to provide Joe Bloggs with a high average weekly wage :)	Terry Porritt (14)
432643	2006-02-22 23:32:00	I think giving tax incentives to Hi-Tech or Export businesses would be a start. i.e. for every proven dollar invested in the business is one less tax dollar that has to be paid, up to the maximum of the profit earned (i.e. no tax credits to be paid to the business). And this can be for the first 10 years. If the business folds after 10 years, it has at least skilled up the staff, who can then set up another business. Eventually we could end up like Ireland.	KiwiTT_NZ (233)
432644	2006-02-23 00:57:00	I think giving tax incentives to Hi-Tech or Export businesses would be a start. i.e. for every proven dollar invested in the business is one less tax dollar that has to be paid, up to the maximum of the profit earned ( i.e. no tax credits to be paid to the business). And this can be for the first 10 years. If the business folds after 10 years, it has at least skilled up the staff, who can then set up another business. Eventually we could end up like Ireland. Sounds a little unfocused - perhaps a better alternative would be to change the tax regime on R and D in the desired areas for the future, eg allow full tax writeoff for appropriate R and D. At the moment we are competing in the same markets with countries that already have such schemes so we are handicapped before we even start. Also encourage more investment in R and D in developing areas not the old sunset and mature areas such as the farming sector (by far the most of our R and D investment is in the primary sector which also has the problems associated with commodity price taking not making). Comparisons with Ireland are a little difficult in that Ireland is close to a massive market and had the benefit of massive grants from the EU along with a market with great protect mechanisms in place for them. We have neither available to us.	dvm (6543)
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