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Rockstar economy strong but not without threat

Author
Josh White, Annabel Reid,
Publish Date
Fri, 10 Apr 2015, 5:08AM
(Photo: Stock.xchng)
(Photo: Stock.xchng)

Rockstar economy strong but not without threat

Author
Josh White, Annabel Reid,
Publish Date
Fri, 10 Apr 2015, 5:08AM

The so-called "rockstar economy" is still pumping out the hits, according to the man who coined the phrase early last year to describe the New Zealand economy.

Paul Bloxham, HSBC's chief economist for New Zealand and Australia, says while the rockstar economy might not be benefiting everyone, it's a shining star worldwide.

"On average, the economy is tracking strongly. It's growing above trend. The collection of people doing well add to a larger collection than the people doing poorly."

He says the rockstar economy is a shining light among OECD countries, and it's still got further to run.

"New Zealand did turn out to be one of the top performing economies in the OECD last year, and as we turn into 2015 it turns out we're still doing well."

Paul Bloxham says the only blip for the rockstar economy is dairy prices, but the decline doesn't seem to be seeping through into the rest of the economy.

However, the Global Financial Crisis is still having an effect on the finance and accounting sectors.

This year's Robert Half salary survey shows firms in New Zealand are mainly focusing on maintaining staff numbers.

It compares to Australia, where more than half of firms are looking to grow their finance and accounting teams.

General manager Megan Alexander says the credit crunch has had a lasting conservative effect on the sector.

"Managers are remembering the GFC quite well and certainly aren't going and spending money willy-nilly, so I think they are keeping quite a tight watch on those costs."

Megan Alexander says the shortage of good talent is putting a squeeze on the sector.

The survey also shows 79 percent of New Zealand's chief financial officers are concerned about losing their top professionals.

Alexander says while it's lower than the 89 percent figure across the Tasman, it's still seriously high.

"CFOs do know that there is a shortage, particularly under the managerial level, and so to have to re-recruit into those positions is difficult...they're having to pay more for them."

Job losses in multiple sectors also pose a threat to break up the rockstar economy.

The closure of Christchurch's mussel processing facility could see entire families without an income.

Sanford is looking at closing its Christchurch plant, to combine it with a facility in Havelock.

232 jobs are on the line.

Wigram MP Megan Woods says it will hit the area hard.

"In this industry and at this workplace, often it was husband and wife teams that were both working there, so it's the whole family income that is gone."

Megan Woods says it shows there needs to be more future planning for the city's local industry.

"We've got a building boom, and we know that's going to last for a number of years. But we can't let other industries die while that flourishes."

And parts of Rimutaka Prison, Rangipo Prison, and Waikeria Prison are all due to be closed over the next year.

260 jobs are likely to go.

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