By: Larry Williams | Tuesday, April 24, 2012 6:30 PM

Productivity Commission

Interesting report out by the Productivity Commission today.

They find that air freight costs are 15 percent more than Australia and shipping costs 20 percent more than Australia.

That all transfers to the bottom line of course and we pay. Doesn't matter, import or exports, the consumer pays in the end.

Of note are the inefficiencies in our ports. Port of Tauranga is an exception but it notes that our ports need to get up with the game and in particular Ports of Auckland.

The report is not complimentary about the council ownership. The Ports’ productivity appears to have diminished since the council got 100 percent ownership.

It's clear to see why the Ports of Auckland are now trying to modernise the work place.

 

OCR

The NZIER Shadow Board says the Reserve Bank should keep the Official Cash Rate unchanged.

There is no chance the Governor will raise the interest rates on Thursday.

Inflation is low and the economy treading along on the bottom, so there's no chance of interest rates going up anytime soon.

 

Crafar

According to a very small Herald/Digi poll most New Zealanders would rather have had the group led by Kiwi asset stripper Sir Michael Fay own the farms rather than the Chinese.

Two points:

1) Fay could have bought them had he offered more than the Chinese.

2) What the poll underscores is how uniformed folk are about foreign investment and trade to this country.

This is sad because it’s this attitude that has the potential to bury this country economically.

 

Fletchers

Fletcher Building is coming under pressure.

With building products clearly too costly, companies are importing product at half the price.

Insulation at 50 percent less!

Companies are competing with Fletchers by offering what they say are better products at lower prices.

It was only a matter of time before building companies looked for alternative product from overseas. The cost of building here is simply ridiculous. The customer is being gouged compared to overseas.

The competition is a good thing.

 

Breakers

The only game in town is the SkyCity Breakers right now. They go for the second championship in a row in an Australasian competition. They have captured the imagination of what I call fringe sports followers.

The concept of the playoff series is something no other sports can match.

I've never really bought into the idea that most Kiwis are fixated with rugby. I think more and more sports fans have spread their wings somewhat. They see there's more to life than a rugby game.

Let’s face it - basketball is it right now - and tonight's final has all the hallmarks of being a ripper.