Media Statement

4 February 2000

Closure of Coats Spencer Crafts, Mosgiel

Dunedin’s two Labour MPs, Pete Hodgson and David Benson-Pope, expressed today their deep regret at the closure of Coats Spencer Crafts at Mosgiel.

The MPs said the loss of 141 permanent positions was a very sad blow for the workers, their families and the Dunedin economy.

“The original downsizing twenty years ago of what was then Alliance Textiles is still fresh in the minds of many. It is very sad that we are now witnessing the end of wool processing at Mosgiel.

“We freely acknowledge the efforts of the company and Dunedin City Council over recent years to try and keep the plant viable. In the last year or so almost 100 people have already lost their jobs. Now the remainder face an uncertain future too."

Mr Hodgson, the Associate Minister for Industry and Regional Development, said the closure underlined the need for this Government’s fresh approach to economic development.

“The global trends facing this company are possibly insurmountable. In short it appears to have an increased share of a rapidly dwindling market. But Dunedin’s long term future will undoubtedly be more secure if local and central government develop partnerships to progress a range of economic initiatives. In due course that will happen. Next week the Deputy Prime Minister and Minister for Economic Development, Jim Anderton, Minister of Local Government Sandra Lee and myself are due to meet with the mayor and council to begin discussions."

Mr Benson-Pope, whose Dunedin South electorate encompasses the Coats Spencer Crafts site, said his first concern was to be certain that good support was in place for the staff affected and that he expected the Dunedin City Council and government agencies to fully co-operate with the company in this regard.

ends

Contact:
Graeme Speden, press secretary to Pete Hodgson, 04 471 9707 or 025 270 9055.
David Benson-Pope MP : 025 454 413

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