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Contribution to the NZ Economy
Fletcher Building is one of New Zealand’s largest
companies, both in terms of revenue and employment, but previously its contribution to the New Zealand economy had not been measured. During the year the New Zealand Institute of Economic Research (NZIER), an independent economic consultancy, was engaged to undertake an analysis of Fletcher Building’s FY17 audited financial statements to determine our contribution to New Zealand’s Gross Domestic Product (GDP) 1 . NZIER’s analysis estimated that Fletcher Building contributed $1.5 billion to New Zealand’s 2017 GDP of $264.7 billion, which translates to 0.6% of national GDP. This included $1.317 billion of value through our earnings, the taxes and GST we pay and the salaries paid to the more than 10,000 New Zealanders who work for us. The remaining $195 million was contributed through tax on commodities. NZIER concluded that Fletcher Building performance, and growth in our activities would provide a significant boost to the economy by increasing economic activity, real wages and household consumption. The positive impacts would be largely seen in retail (motor vehicle and motor vehicle parts, fuel, non-traditional retail formats, and commission), owner- occupied property operation, personal services, construction services, banking and financing and central government administration services. makes a strong contribution to New Zealand’s overall economic
$1.5b Fletcher Building contributed
$1.5 billion to New Zealand’s 2017 GDP.
1 Current state GDP contribution was evaluated. The GDP contribution was estimated by summing EBITDA, employee short-term costs and long-term benefits, tax expenses and tax on commodities.
49 Fletcher Building Limited Annual Report 2018
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