Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Provincial town reeling under National’s inept management

David Parker
Spokesperson for Finance

31 January 2013

Another provincial town reeling under National’s inept management

High dollar forces Summit factory closure, 190 jobs cut in Oamaru

The crippling exchange rate has caused 192 hard-working Kiwis to lose their job as Summit Wool Spinner is sold, says Labour’s Finance spokesperson David Parker.

Summit is being sold by its parent company Sumitomo to Godfrey Hurst in Australia. The chief executive has said the high New Zealand dollar is a major reason for this.

“Summit employs 192 people and they are all being made redundant. In Oamaru tonight there will be worried discussions over the dinner table and many sleepless nights. Many will likely head to Australia as in Greymouth after the closure of the Spring Creek mine.

“I would like to thank the outgoing Japanese owners of Summit, who have supported Oamaru and helped local workers improve the productivity of the Oamaru factory. Despite their efforts, with no help from this government on the exchange rate, one of the largest employers in Oamaru has been forced to give up.

“This will obviously have dire effects for those working at the factory, as well as for Oamaru. It is a further blow to Otago, which lost Hillside workshops just a month ago.

“The current owners and workers of Summit are yet more victims of the high dollar, which is crippling exporters and costing jobs. Last year at least two companies a week announced redundancies, and this year is following the same trend.

“This cannot go on. On Monday chief executives of major Kiwi companies told the Parliamentary Inquiry on Manufacturing that the high dollar is forcing them to cut jobs, reduce investment and, in some cases, head offshore or shut down.

“Our manufacturing sector outside primary industries is being hollowed out and the dollar is to blame. But National refuses to consider any changes that might lower the exchange rate.

“This is despite unemployment at 13-year highs, dropping exports and a $10 billion external deficit, which is worse than every developed country bar Greece.

“The Reserve Bank’s tunnel vision mandate requires it to give primacy to inflation ahead of the currency, jobs and exports. This pushes our overvalued and damaging exchange rate to the back of the queue. We must give the Reserve Bank a 20/20 perspective on the economy.

“Labour has long argued that the Reserve Bank must be required to give proper weight to other important issues such as the exchange rate and jobs. That would help our exporters and manufacturers and allow them to keep jobs, pay higher wages as well as earn vital export earnings,” says David Parker.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Teina Pora Wins Appeal: Gordon Campbell On The Privy Council Decision

The quashing of the convictions of Teina Pora for the rape and murder of Susan Burdett in 1992 has shone a spotlight once again on a major gap in the New Zealand justice system.

To all intents and purposes, access by New Zealanders to the Privy Council has now been closed. Yet the number of times in recent years when the Privy Council has quashed the findings of New Zealand courts has demonstrated that we are regularly
(a) jailing the wrong person or
(b) arriving at guilty verdicts on grounds sufficiently flawed as to raise serious doubts that a miscarriage of justice has occurred. More>>

 

PARLIAMENT TODAY:

Urgent Bill Planned: MP Pay Rises To Match Public Service

Prime Minister John Key today announced an overhaul of the Remuneration Authority Act, tying MP salaries to those of the wider public sector, which will be passed under urgency. More>>

ALSO:

PM's Press Conference: MP Pay Rises, Solid Energy, Iraq

Prime Minister John Key answered questions in his Post-Cabinet press conference about the Iraq deployment, Solid Energy and National’s decision to overhaul the Remuneration Authority Act. More>>

ALSO:

Worksafe: MSD Charged Over Work And Income Ashburton Shooting

WorkSafe NZ has laid one charge against the Ministry of Social Development (MSD) in relation to the shooting at the MSD Ashburton office on 1 September 2014 in which two Work and Income staff were killed and another was injured. More>>

ALSO:

Iraq: Ex-Hostage Says Government Not Putting NZers, Iraqis First

Harmeet Singh Sooden is travelling to Iraq in the coming weeks to work with Christian Peacemaker Teams (CPT) on a short-term assignment. More>>

ALSO:

Joint Statement: Australia-New Zealand Leaders’ Meeting

Prime Minister Key warmly welcomed Prime Minister Abbott and Mrs Abbott to New Zealand. The visit has enabled wide-ranging and substantive discussion that has underlined the strength, value, diversity and warmth of our trans-Tasman relationship. More>>

ALSO:

Press Conference: Peters To Stand In Northland By-Election

New Zealand First Leader Winston Peters has announced his intention to stand in the Northland by-election, citing his own links to the electorate and ongoing neglect of the region by central government. More>>

ALSO:

Gordon Campbell: On The Wage Hike For MPs (and Paul Robeson)

Hard to tell what is more infuriating. Is it the 5.3% increase on the already bloated salaries of MPs, or their pantomime of outrage at being gifted with such a wonderful back-dated bonanza? More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news