Business

Manufacturing woes not solely due to dollar - Wheeler

14:23 pm on 28 November 2012

Reserve Bank Governor Graeme Wheeler says a lower dollar is not necessarily a panacea for a revival in manufacturing jobs judging by the experience of other countries.

Mr Wheeler told Parliament's Finance and Expenditure select committee on Wednesday that manufacturing output in New Zealand had declined 9% since the global financial crisis.

But he said not all of the decline in manufacturing can be attributed to the high New Zealand dollar.

Decline in manufacturing as a share of total output has occurred in countries with both high and depreciating exchange rates, he said.

Mr Wheeler said manufacturing in New Zealand relies heavily on sales to the construction sector and the rebuild of Christchurch will be a significant boost.