Ru­ral con­tract­ing strong

South Waikato News - - RURAL DELIVERY -

The ru­ral con­tract­ing in­dus­try is big busi­ness af­ter con­tribut­ing al­most a bil­lion dol­lars to the coun­try’s econ­omy last year and set to re­turn to its 2008 peak.

Ru­ral con­trac­tors added $947 mil­lion to New Zealand’s GDP, ac­cord­ing to a re­port pre­pared by re­search com­pany In­fo­met­rics for Ru­ral Con­trac­tors New Zealand.

RCNZ chief ex­ec­u­tive Roger Par­ton said the re­search showed the in­dus­try was a ma­jor con­trib­u­tor to the agri-sec­tor and a vi­tal part of the over­all econ­omy.

He said ru­ral con­tract­ing had rapid growth in eco­nomic out­put be­tween 2000 and 2008, ex­pand­ing 4.1 per cent a year com­pared with the na­tional econ­omy growth of 2.7 per cent.

‘‘ The sec­tor’s eco­nomic out­put peaked in 2008 and eased back in re­cent years, due to cau­tious spend­ing in the agri­cul­tural sec­tor in the af­ter­math of the[global fi­nan­cial cri­sis]. How­ever, In­fo­met­rics ex­pects de­mand for ru­ral con­tract­ing to ex­pand back to­wards its pre­vi­ous peak again, as farmer con­fi­dence re­turns in the com­ing years.’’

The con­tri­bu­tion to the na­tional econ­omy came from 5255 reg­is­tered ru­ral con­tract­ing busi­nesses. Th­ese busi­nesses em­ploy nearly 18,000 peo­ple.

Fair­fax NZ

Photo: FAIR­FAX NZ

Growth in ru­ral con­tract­ing has topped 4 per cent.

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