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Compliance costs kill Dunedin processing plant

Katherine Rich MP
National Party Economic Development Spokeswoman
5 October 2006

Compliance costs kill Dunedin processing plant

National Party Economic Development spokeswoman Katherine Rich is saddened to hear Sealord is closing its Dunedin processing plant.

“I appreciate that there will be a number of reasons that underpin Sealord's difficult decision,” says the Dunedin-based MP.

“I am sad for the local families who will either lose their jobs or have to shift away.

“I also sympathise with the company’s view this week that ‘government compliance and bureaucratic costs have been going through the roof in the past few years’.

“The closure of the plant is another example of this Labour Government making it harder - not easier - to do business. Unfortunately, the issue is not isolated to Dunedin.

“Sealord estimates that the Government's recent regulatory burden placed on the fishing industry - over pay rates for foreign charter crews - will cost the industry a minimum of $30 million a year. Sealord alone faces costs of nearly $5 million a year.

“The Government's proliferation of red tape has seen over 2,000 regulations introduced since 1999. This ‘compliance creep’ has just cost dozens of Dunedin families their livelihoods.

“Labour should hang its head in shame.”

ENDS

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