www.oocities.org/ubinz/press/1999B23DomBrainwash.html

NEW ZEALANDERS have become brainwashed armchair economists with plenty of opinions but no understanding, according to private-sector trade adviser Jules Croft.

But Mr Croft, of Auckland trade, economics and public policy consultancy Blackburn Croft, said Bendon's announcement this month that it was quitting manufacturing in New Zealand could change perceptions about economic management of the past 15 years.

Four hundred jobs will be lost when Bendon, which has been making women's underwear in New Zealand for more than 50 years, leaves for Asia this week.

'There's been a string of these closures and when Bendon closed in Whangarei there was almost nothing in the press about it," Mr Croft said.

'People have been brainwashed without understanding it [economics].

'There's been an unfettered em bracing of what I call simple economics. We all have our opinion without understanding it."

Fifteen years ago New Zealand had strong manufacturing potential, he said. Since, there had been

complete disregard for the conditions that should exist in a small economy to promote exports not based on "grass and sunshine".

'That's been forgotten because the huge criticism with manufacturing is that if you can't make it cheaper then you shouldn't be making it.

"Taken to its logical conclusion that means you'd never make anything."

He said Bendon closed because New Zealand would have no tariffs by 2006.

'It's not the removal of tariffs in one sector, it's across all sectors. Bendon says when all tariffs are gone who is going to supply its but tons or fine detailed work?

"There's not going to be infrastructure there.

"Just think of the huge support industries that were around in the automobile assembly industry. Where are all those little metal shops that were stamping out components? Automotive components was once a very strong export sector."

Eight years ago pharmaceutical manufacturing companies were making high-value products shipped at low cost to other markets, he said.

"Now we have nothing other than some generic manufacturing, and that is really struggling."

Mr Croft said the brainwashing was evident in the lack of election debate about the economy and trade.

Neither National nor Labour had a grasp of trade issues, though Labour had sent a signal to manufacturers that it would freeze tariffs.

Labour would have to "rein vent" manufacturing investment.

"It's almost like all the skills have gone now. The views of the policy-makers and the bureaucracies are very much coloured by the attitude 'we don't do this support work'."

Australia on January 1 would pour huge incentives into its automotive industry. "They don't let Japanese imports in, because surprise, surprise, they see it as damaging to their local industry."

The latest political pitch for New Zealand to be driven by a "knowledge" economy was "incredibly naive", Mr Croft said.

"The knowledge economy will build itself off a good manufacturing economy and we are such a small economy we can't rely on these ideas.
 

"Even the largest economies wouldn't look at them because they're unproven."