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Decisions on post 2005 tariffs (Includes Q&A)

30 September 2003 Media Statement

Decisions on post 2005 tariffs

After a six-year freeze, tariff rates will again begin reducing, but the government has held off moving to a zero tariff regime, Commerce Minister Lianne Dalziel announced today.

Today, Lianne Dalziel, Trade Negotiations Minister Jim Sutton and Economic Development Minister Jim Anderton announced the government’s tariff policy for post 2005.

Under the government’s decisions the highest tariff rates of between 17 to 19 percent, which apply largely to clothing, footwear and carpet, will begin reducing from 1 July 2006. These rates will reduce gradually to 10 percent by 1 July 2009.

Tariff rates on all other goods will reduce to 5 percent by July 2008, as set out in the table below. Alternative specific tariffs, which apply almost solely in the clothing area, will revert to the apparel ad valorem tariffs on 1 July 2005.

Current Tariff July 2006 July 2007 July 2008 July 2009
17 – 19% 17% 15% 12.5% 10%
10 – 12.5% 10% 7.5% 5% 5%
5 – 7.5% 5 – 7.5% 5 – 7.5% 5% 5%

“These decisions were reached after consideration of a wide range of issues raised by many business groups and firms throughout New Zealand. The tariff programme we have adopted represents a careful weighing of all viewpoints.

“On the one hand the government has recognised the need for firms to continue to move up the value chain, and become more innovative and internationally competitive,” Lianne Dalziel said.

“Previous tariff reduction has generated significant productivity and welfare gains, especially for consumers.

“However, we have also recognised that previous tariff reductions have imposed significant adjustment pressures on industries and particularly in certain regions,” Lianne Dalziel said.

Jim Sutton said there is also international uncertainty surrounding tariff liberalisation, both in the WTO and APEC.

“The government is not prepared, therefore, to move to a zero tariff regime at this time. We will still retain some trade negotiating coin.

“By comparison, Australia’s current apparel tariff of 25 percent will fall to 17.5 percent on 1 January 2005. Australia has completed its review of textile, clothing and footwear tariffs beyond 2005, but has not yet announced its decisions,” Jim Sutton said.

Jim Anderton said the government’s decisions were aimed at minimising adjustment pressures to firms and regions. They involved very gradual reductions of tariffs overall, with no Normal tariff falling below 5 percent before 1 July 2009.

A further review in 2006 will determine the tariff rates after 1 July 2009.

“The government will also be working closely with the textile, clothing, footwear and carpet industries, in particular, to ensure that existing industry and regional development policies are effective in helping these industries work through the adjustment process,” Jim Anderton said.

Australian and New Zealand Ministers recently agreed to examine the CER Rules of Origin (ROO) requirements with a view to considering improvements which will benefit business on both sides of the Tasman. New Zealand industry will be consulted on this soon, and the review is due to be completed in 2004.

The Ministry of Economic Development’s report on the Tariff Review, and the list of the government’s key tariff decisions are being released with today’s announcement.

To view online: http://www.med.govt.nz or below

************

POST-2005 TARIFF POLICY
Questions and Answers


1. What is New Zealand’s current tariff profile?

- New Zealand’s tariffs are low by world standards with a simple average tariff of 3.7 per cent.

- In 2002 duty paid on all imports totalled $288 million, which accounted for 0.7 per cent of government revenue.

- 44 per cent of import categories carry duty and 95 per cent of imports, by value, enter New Zealand free of duty.

- Most dutiable imports face low tariffs of 5 – 7 per cent. The highest tariffs apply to carpet, clothing (including headgear), footwear, ambulances and motor homes which attract rates of up to 19 per cent. Some textile products have rates of up to 12.5 per cent and automotive components have rates as high as 11.5 per cent (tyres).

- A chart comparing New Zealand’s tariffs with other countries is attached as Appendix A.

2. Econometric modelling undertaken for the tariff review shows that the benefits of future tariff reduction will not be as significant as under previous reduction programmes. Why has the government decided to continue on a unilateral reduction path?

- The review identified that New Zealand had a sharply different tariff profile from 10 years ago and that New Zealand tariffs are now low by international standards.

- Previous tariff reduction has generated significant productivity and welfare gains, particularly for consumers. A NZIER (1999) study of four items (cars, household appliances, shoes and clothes) estimated that the tariff reductions between 1987 and 1998 raised average household spending by $22 per week (1998 prices). This translates into prices on household appliances being 9% lower, shoes 5% lower, and clothes 15% lower.

- The Infometrics report identified that previous tariff reduction was responsible for a one off 0.3% increase in GDP. This is equivalent to $414 million (in 1995/96 prices), or approximately $300 per household. In addition the longer-term dynamic gains from tariff reduction have included:
- increased productivity;
- enhanced firm level innovation;
- improved business practices; and
- increased technology transfer uptake.

Many New Zealand companies are now innovative and internationally competitive, and resources are being used more productively.

- Economic analysis also showed that, while less than under previous tariff reductions, there are still significant gains to be had. The current tariff regime is estimated to be costing the economy 0.1 percent of GDP or $135 million and is imposing an estimated cost on the export sector of $325 million. The regime is also inhibiting firm-level innovation, particularly in those industries with high tariffs.

- It is important that further tariff reduction takes place in order to improve resource allocation across the economy and maintain the pressure on firms to innovate and continue to improve productivity.

- In an increasingly competitive international environment it is essential for NZ firms to continue to improve productivity and be innovative.


3. Why is the government re-instigating a tariff reduction programme?

- The review identified that New Zealand had a sharply different tariff profile form 10 years ago and that New Zealand tariffs are now low by international standards.

- The review also acknowledged that the major efficiency gains had already been achieved, however, there were further gains to be made.

- The tariff review also highlighted that a significant adjustment cost had been imposed on the economy and on particular regions due to the relatively sharp reduction path and therefore, the government believes that in order to proceed it is important that adequate adjustment periods are given.

- The review also acknowledged that the long-term survival of business depended on the ability to operate in a tariff-free environment however, they were concerned about moving too fast. The government’s announcement represents a well-balanced decision.

4. How will the tariff changes affect international agreements?

- New Zealand is an active member in both APEC and the WTO. Consideration of the implications for tariff policy under New Zealand’s international obligations, including those under APEC, and the WTO was taken in the decision to reduce tariffs.

- New Zealand will still give priority to achieving reciprocal tariff liberalisation in the WTO, APEC, and through bilateral or regional CEPs.

5. What is Australia doing on tariffs?

- The tariff programme being put in place will be similar to Australia’s. For example, Australia’s apparel tariff is currently 25 per cent and will reduce to 17.5 per cent on 1
January 2005. This will be higher than New Zealand’s 19 per cent tariff at that time. A review of Australia’s TCF tariffs beyond 2005 has been completed. Decisions have not yet been announced, but it is likely that clothing tariffs will be phased down to 10 per cent in 2010.

- The Australian government has also signalled that its standard tariff of 5 per cent may not be removed unless other countries signal a move to zero tariffs.

- Australian tariff rates attached in Appendix B


6. What are the employment, export figures for each of the TCFC sectors?

- The textiles industry employs approximately 7,700 people and in 2001 exports where $56 million (this does not include carpet yarn exports).

- The clothing industry employs approximately 8,400 people. Exports have increased from $29 million in 1989 to $222 million in 2001.

- The footwear industry employs approximately 730 people. Exports have increased from $10 million in 1989 to $60 million in 2001.

- The carpet industry employs approximately 900 people. Carpet yarn exports were $88 million and tufted carpet exports –accounting for the bulk of carpet exports – totalled $76 million in 2002.


7. What is the government doing in the TCFC sector?

- The TCFC Sector Strategy was developed as a partnership by TCFC industries and the Government. In September 2002 the sector strategy, The Way Ahead, was completed. The Strategy’s vision was to “transform the TCFC industries so that they grow profitably and sustainably in the global market place and to ensure that growth opportunities are available for small, medium and large TCFC companies.”

- The Strategy proposed the formation of a new industry development organisation, Textiles NZ, to increase cooperation and collective action to develop markets; increase training and upskilling; and promote best practice. Textiles NZ is now working to build industry membership and foster information flows within the sector.

- The government has already contributed to the TCFC Sector Strategy, and will continue to work with the industry in terms of the current industry and regional development initiatives to assist in making the transition to a lower tariff environment.

8. Are there plans for reducing the employment effects?

- Government programmes aimed at facilitating retraining and job placement will address the dislocation suffered by low and unskilled workers. Officials form the Department of Labour, the Ministry of Social Development, the Ministry of Economic Development, the Tertiary Education Commission and the Treasury have been directed to consider possible additional employment assistance initiatives and will report back to the Minister shortly.

Alternative Specific Tariffs

9. What are alternative specific tariffs and why are they being removed on 1 July 2005?

- Tariffs are levied on imported goods either through an ad valorem duty or by a specific duty. A specific duty is where duty is levied on imports at a rate fixed in monetary terms per unit of quantity, regardless of price (e.g. $3.55 per item). They apply to largely low cost (mainly clothing) items.


- When using alternative specific rates, duty is calculated either by way of the alternative specific rate or the immediately preceding ad valorem rate. The importer pays whichever rate returns the highest level of duty. Of those imports that may attract duty by way of an ad valorem or a specific rate, only 22 per cent of imports, by value, paid the specific rate in the June year 2002.

- Eliminating alternative specific tariffs will lead to consumer benefits and will result in a more transparent and predictable tariff regime.

- The existence of the alternative specific raises the equivalent ad valorem tariff rate by an average of 1.7 percentage points. This is 1.7 percentage points is on top of the ad valorem rate of duty.

- These alternative specific rates are to be removed on 1 July 2005 and only the appropriate ad valorem rate will apply.

Appendix A

How New Zealand tariffs compare with other countries

Country (a) Year All Goods Agricultural Manufactured
Simple mean tariff* in percentage
Australia 2000 5.8 1.7 6.2
European Union 2000 2.4 4.6 1.8
United States of America 2000 4.0 4.3 4.0
Japan 2000 4.5 8.3 3.2
Republic of Korea 1999 8.6 12.3 7.8
People’s Republic of China 2000 16.3 16.5 16.2
Taiwan, China 2000 7.8 13.6 6.7
Hong Kong, China 1998 0.0 0.0 0.0
Canada 2000 3.9 2.8 4.2
Malaysia 1997 9.3 7.0 10.3
Philippines 2000 7.6 11.9 6.9
Mexico 2000 16.2 18.3 16.1
Indonesia 2000 8.4 6.3 8.9
Thailand 2000 16.6 21.9 15.7
Singapore 1995 0.0 0.0 0.0
Saudi Arabia 2000 12.3 11.9 12.4
New Zealand * 2000 3.3 1.6 3.6
2002 World Development Indicators, World Bank
These rates are effectively applied rates, which reflect the rates actually applied to trade partners in preferential trade agreements. The rates are therefore not based on MFN rates; hence the New Zealand rate as 3.3 per cent rather than 3.7 per cent as used elsewhere in the Tariff Review.

Appendix B

Australian comparisons

2000 2005*
Passenger motor vehicles 15% 10%
Apparel and certain finished textiles 25% 17.5%
Footwear 15% 10%
Woven fabrics 15% 10%
Sleeping bags, table linen 10% 7.5%
Other textiles/clothing/footwear (e.g. yarns and leather) 5% 5%
General manufacturing 5% 5%
*The rates shown are the legislated rates
- TERMS OF REFERENCE
Background

1 The government has requested that officials review New Zealand’s post-2005 tariff policy and develop tariff policy options for that period.
2 New Zealand’s process of unilateral tariff reduction has been suspended and, as a general rule, tariffs are currently being held at their July 1999 levels. This freeze will apply until July 2005.
Objectives

3 The Review will develop options and recommendations for tariff policy beyond 1 July 2005 that take into account the Government’s economic development strategies and the costs and benefits to the New Zealand economy, consumers, industries, their employees and the wider community, of the various policy options.
4 The Review will begin in February 2002.
5 The Review will have regard for the Government’s desire to:
- promote the development of prosperous and internationally competitive industries;
- encourage regional development and reduce economic disparity;
- abide by New Zealand’s international commitments and actively participate in bilateral and multilateral trade negotiations; and
- encourage reciprocity by New Zealand’s trading partners in regard to the lowering of tariffs.
Guiding Principles

6 The Review will be guided by the following principles:
- the outcome will not be prejudged;
- It will be widely inclusive of all stakeholders and sectors of the economy, and ensure that Mâori, Pacific and women business groups are effectively consulted;
- it will be broad in scope and give consideration to the social, employment (including gender and ethnic issues) and regional impacts of tariff policy on different groups; and
- it will be undertaken in the general context of the Government’s broader economic, industry and regional development policies.

Key Areas of Focus

7 The Review will:
a. outline the rationale for, and assess the wider economic effects of, previous tariff reduction/removal. This will include consideration of industry efficiency, regional and industry development, the labour market and social consequences of tariff reduction and the effects on exporters and consumers;
b. assess the benefits and costs of existing tariffs and their effectiveness in meeting the Government’s broader economic and industry development objectives compared to other measures;
c. assess the wider effects of remaining tariffs at the firm, sector and broader economy level, in the context of the Government’s overall economic policies;
d. consider the implications for tariff policy of New Zealand’s international obligations, including those under APEC, the WTO, and in the bilateral context; and
e. assess the implications of pursuing a policy of reciprocity in the context of tariff reduction.
Results of the Tariff Review

8 The Review will have the final goals of:
a. reporting on the matters identified in point 7 above;
b. identifying, analysing and reporting on the benefits and costs of tariff reduction across all sectors of the New Zealand economy; and
c. providing the Government with options and strategies relating to the further delay, resumption or acceleration of unilateral tariff reductions in the context of post-2005 tariff policy.
9 The Tariff Review will be completed by 31 March 2003.

SUBMISSIONS TO THE TARIFF REVIIEW
170 written and oral submissions to the Review were received. Submitters included unions, business groups, industry and agricultural organisations, retailers, importers and many individual manufacturing firms. The full list of submission is listed below.
Written Submissions

ACI Glass Packaging New Zealand
Ambler and Company Limited
Astrograss
Bernard Gadd
BMV International Limited
Bridgestone/Firestone New Zealand Ltd
Bruce Dunlop (for flexible packaging)
Business New Zealand (x2)
Cavalier Bremworth Ltd
Clothing, Laundry & Allied Workers’ Union of Aotearoa (x3)
Confédération Européenne des Producteurs de Spiritueux
Cooper Watkinson Textiles Ltd
Deane Apparel
Distilled Spirits Association of New Zealand (x2)
Distilled Spirits Council of the United States
Earth Sea Sky Equipment Ltd (x2)
Employers’ & Manufacturers’ Association Northern Inc. (x2)
Enterprise Horowhenua Inc on behalf of the Kapati Horowhenua Apparel and Textile Industry Cluster Group
Fashion Industry New Zealand
Federated Farmers of New Zealand
Feltex Carpets Limited
Fisher & Paykel Appliances Limited
Fletcher Building Limited
Fonterra
Furniture Association of New Zealand Inc.
G.U.D. (N.Z.) Limited
Gin and Vodka Association of Great Britain
Green Party of Aotearoa New Zealand
Heinz Wattie's Australasia
Horowhenua District Council
Importers’ Institute
Kauri Clothing Ltd
Lane Walker Rudkin Industries
Lindsay Royal Ltd
Marc Bendall Limited
Meat New Zealand
Ministry of Agriculture and Forestry
National Distribution Union
Neatfit International Limited
New Zealand Business Roundtable
New Zealand Chambers of Commerce and Industry
New Zealand Council of Trade Unions (x4)
New Zealand Footwear Industry Association (x2)
New Zealand Grain & Seed Trade Association Inc.
New Zealand Heavy Engineering Research Association
New Zealand Household Textiles Group
New Zealand Pork Industry Board
New Zealand Retailers Association
New Zealand Steel Ltd
New Zealand Trade Liberalisation Network
New Zealand Wood Panel Manufacturers’ Association
Norsewear
Oxfam New Zealand
Pacific Brands Holdings New Zealand Ltd
Pacific Business Trust
Pacifica Seafoods (Christchurch) Ltd
Paul Blomfield
Plastic and Leathergoods Co Ltd
Plastics New Zealand Inc
Plastics New Zealand Inc for flexible packaging industry
Rembrandt Suits Limited
Savant Pacific Ltd
Shanton Apparel Ltd
Signature Rug & Cork Company Ltd
South Pacific Tyres NZ Limited
Textiles New Zealand (IDO)
V.S.S.P. PTY LTD. Hart Manufacturing Ltd
Verissimo Engineering Ltd
Vision 2020 Inc. Hawke’s Bay Regional Strategic Economic Development Agency
Vitec Nutrition Limited
W. Peers & Co. Ltd
Wellington Regional Economic Development Agency
Whitehead Productions Ltd
Wools of New Zealand
Woolyarns Holdings New Zealand Ltd
Yakka Apparel Solutions Ltd (x2)
Yakka New Zealand Limited

Oral Submissions

AEP Industries (NZ) Ltd
Alto Plastics
Ambler and Co Limited
Apparel and Textile Federation
Auckland Regional Chamber of Commerce Biofarm
Bridgestone Firestone New Zealand Ltd
Business New Zealand C A Craigie & Co Ltd
Cambridge Clothing Company Limited
Canterbury Employers' Chamber of Commerce
Canterbury Manufacturers' Association
Canvasland Holdings Ltd
Chequer Packaging Limited
Clothing, Laundry & Allied Workers Union of Aotearoa (CLAW)
Deane Apparel
Designer Textiles International Ltd
Diemetrics Precision Diecasting
Distilled Spirits Association of New Zealand
Douglas Sandals Ltd
Economic Development Association of New Zealand
Employers and Manufacturer’s Association (Northern) Inc
Enterprise Horowhenua
Fabia Ltd
Federated Farmers of New Zealand (Inc)
Feltex Carpets Limited
Fisher & Paykel Appliances Ltd
Fletcher Building Limited – Golden Bay Cement, Fletcher Wood Panels, Pacific Steel and Pacific Wire, Winstone Wallboards Ltd
Fonterra Co-operative Group
G.U.D. (N.Z.) Limited
Heinz Wattie's Ltd
Hella-New Zealand Limited
Horowhenua District Council
Hubbards Foods Ltd
Huhtamaki Packaging Worldwide
Interlock Group limited
Kathmandu
Kumfs Shoes New Zealand Limited
Levana Textiles Limited
Lindsay Royal Ltd
Lane Walker Rudkin Industries Ltd
Lynn River Limited
McKinlay's Footwear Ltd
Manawatu Knitting Mills Limited
Mâori Business Network
Merz & Associates Limited
Moontide International Limited
Mollers Textiles Ltd
Motor Sport Apparel Ltd
National Distribution Union
New Zealand Council of Trade Unions New Zealand
Footwear Industry Association New Zealand
Pork Industry Board
New Zealand Retailers Association
Norsewear
NZ Heavy Engineering Research Association
NZ Merchants Ltd
Orica New Zealand Limited
Otago Chamber of Commerce and Industry Incorporated
Otago Southland Employers Association Inc.
Pacific Business Trust
Pacific Brands
Parisian Neckwear Co Ltd
Paul Blomfield, Fashion Industry Consultant
Plastics New Zealand
Pumpkin Patch
Saibar Clothing Company Ltd
Sam Wrigley Ltd
Sealed Air (New Zealand) Ltd
South Pacific Tyres NZ Ltd
Summit Wool Spinners Ltd
Swazi Apparel Ltd
Talbot Plastics Ltd
V.S.S.P. PTY LTD. Hart Manufacturing Ltd
Verissimo Engineering Limited
Vertex Pacific Limited
Wellington Chamber of Commerce
Whitehead Productions Ltd
Woolyarns New Zealand
Wraggs Apparel Ltd
Yakka Apparel Solutions
Yakka New Zealand Limited

GLOSSARY

Ad valorem tariff A tariff proportional to the value of an imported good i.e. a percentage of the value of the good.

Allocative efficiency Getting any given results with the smallest possible inputs, or getting the maximum possible output from given resources.

Alternative specific tariff A fixed monetary value tariff (i.e. specific tariff) applied per unit if the duty payable exceeds the amount of duty payable under the applicable ad valorem tariff. New Zealand maintains alternative specific tariffs on 60 per cent of clothing Tariff items.

Applied tariff rate The actual tariff levied on an imported good.

Bogor Declaration / Bogor Goals "free and open trade and investment in the Asia-Pacific by 2010 for industrialised economies and 2020 for developing ones." This goal was adopted in 1994 by APEC members at the 6th APEC Ministerial Meeting in Bogor, Indonesia.

Bound tariff rate The tariff rate agreed to under the GATT or at the WTO for a specified Tariff item. Applied tariff rates can not be raised above their equivalent bound rates without offering compensation to affected trade partners. Bound tariff rates are enforceable under Article II of GATT.

Margin of preference The difference in tariff rate between the duty payable on an MFN basis and that payable under a preferential trading arrangement such as CER.

Most-favoured-nation (MFN) tariff The tariff rate that applies to imports on a non-discriminatory basis from countries that do not receive a tariff preference or tariff concession. Also referred to as normal tariff or general tariff.

Non-tariff trade barrier A barrier to trade other than a tariff that has the effect, intended or not, of restricting trade. For example, an import quota, a technical barrier to trade or an embargo. Also referred to as non-tariff measure.

Re-export A good exported in the same state as previously imported. It includes exports that underwent processing (after being imported) which did not change their origin.

Rules of origin The criteria used to determine where a product is made.

Specific tariff A fixed monetary amount levied per unit on an imported good.

Swiss formula A tariff reduction formula proposed by Switzerland and adopted at the GATT Tokyo Round (1974–79). It is a differential approach that reduces higher tariffs more than lower tariffs so as to reduce tariff peaks and thereby create a more uniform tariff regime.

Tariff A tax levied on imports at the border primarily to protect domestic industry.

Tariff concession Domestic context: Derived from the Tariff Act 1988, a tariff concession is a formal mechanism by which goods dutiable in the Tariff can be made duty free.
International context: Negotiated reduction of a tariff which is bound under the GATT or committed to under a bilateral agreement.

Tariff item An 8-digit import category of Part I of the New Zealand Tariff.

Tariff peak Either a tariff above 15 per cent or a tariff that is more than three times the country’s average tariff rate.

Uruguay Round The last GATT round of multilateral trade negotiations initiated in Punta del Este, Uruguay, beginning in 1986 and ending in 1994.


************

Post 2005 tariff review
Key decisions

Background
• In 2000, the government agreed to halt the unilateral tariff reduction process by "freezing" tariffs at their July 1999 levels until 1 July 2005 and to conduct a review to determine New Zealand’s post-2005 tariff regime
• This decision constituted a significant departure from the previous government’s policy to unilaterally remove all tariffs by 2006 – most by July 2001.

Review’s Terms of Reference
• The review was to have regard to the government's desire to:
– promote the development of prosperous and internationally competitive industries;
– encourage regional development and reduce economic disparity;
– abide by New Zealand's international commitments and actively participate in bilateral and multilateral trade negotiations; and
– encourage reciprocity by New Zealand's trading partners in regard to the lowering of tariffs.

Key decisions
• All alternative specific tariffs are eliminated on 1 July 2005
• Gradual reduction in ad valorem tariffs to 1 July 2009
• Further tariff review in 2006 to determine the continuing tariff reduction path post 1 July 2009

Ad valorem tariff rates: July 2006 - July 2009

Current Tariff July 2006 July 2007 July 2008 July 2009
17 – 19% 17% 15% 12.5% 10%
10 – 12.5% 10% 7.5% 5% 5%
5 – 7.5% 5 – 7.5% 5 – 7.5% 5% 5%

Tariff Review
• Sharply different tariff profile from 10 years ago.
• New Zealand tariffs are now low by international standards (simple average of 3.7% across all goods).
• 95% of imports by value enter New Zealand duty free
• Major efficiency gains already achieved, however significant adjustment costs have been imposed on the economy (and on particular regions) due to the relatively sharp reduction path
• Many submissions acknowledged that the long-term survival of business depended on the ability to adjust and operate in a tariff-free environment
• Most submissions agreed that adequate adjustment periods were essential and considerable caution was expressed about moving too fast and more quickly than other countries
• Decision carefully weighs three considerations, namely:
– That tariff policy is important, however, further productivity gains will be increasingly dependent on investment in innovation, R + D and export development;
– Adjustment costs must be weighed against longer-term benefits and therefore industry and regional development initiatives (including skills development and training) must be linked into affected regions;
– that there is merit in delaying move to zero tariffs until there is a clearer picture of what is happening in APEC, WTO and Australia

Complementary government initiatives
• Rules of Origin (ROO)
– CER ROO to be examined to assess whether these can be improved to benefit businesses in Australia and New Zealand.

• Industry and regional development
– TCFC / government strategic partnership
– Formation of Textiles NZ
– Regional Partnerships Programme

• Employment assistance
– Jobs losses possible with particular effect on:
• Clothing and footwear industries
• The regions of Kapiti and Horowhenua
• Female workers in these industries
– Mitigated by:
• Work and Income working with employers
• Community Employment Group establishing resource centres
• Officials to report on more detailed proposals on additional employment assistance, including up-skilling

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