WPI calls on government for dollar reduction strategies

Ruapehu Bulletin, Volume 14, Issue 667, 17 December 1996, Page 3

WPI calls on government for dollar reduction strategies

WPI chief executive David Anderson says the company is concerned that the new govern ment has not yet announced any strategies for lowering the New Zealand dollar. "It is pleasing to note that now a government has been formed they are reiterating their commitments to address the high value of the dollar. It remains a major concern of WPI however, that the government has not yet declared any specific strategies to lower the dollar' s value," said Mr Anderson. "It is not good enough and makes little real difference to exporters if the dollar falls by one or two cents as a consequence of fluctuating demand arising from short term speculation. WPI and most exporters maintain that the dollar is overvalued by between 10 and 15% and this will require a deliberate strategy by Government to bring the value down to realistic levels," he said last week. The Karioi pulp mill, owned by Winstone Pulp International Ltd, will be shutting down for approximately one month over the Christmas period. Mr Anderson said that the high value of the New Zealand dollar is the primary cause for the difficulties currently experienced by the company. "The value of the dollar has increased by up to 30 per cent over a three-year period. Whi le WPI and other exporters have achieved significant productivity gains over that same period it is unrealistic to expect exporters to match these gains with the dramatic increase in the dollars value," he added.