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

 

PARLIAMENT TODAY:

Labour: Cash For Charter Schools, Mould For State Schools

“Recently released financial statements show the Whangarei charter school He Puna Marama received $3.9 million in government funding to the end of last year. Yet their audited accounts show they only spent $1.4 million on education, leaving almost $2.5 million over two years unaccounted for." More>>

ALSO:

Kiwirail Plans Shift From Electric: National Urged Not To Take Backwards Step

The National Government shouldn’t drag New Zealand backwards by replacing its climate friendly electric trains with carbon-polluting diesel trains, the Green Party said today. More>>

ALSO:

Capital Connection:

Harmful Digital Communication Bill Passes: Focus Must Be On Education

InternetNZ acknowledges the passage of the Harmful Digital Communications Bill into law this afternoon, and says that the sooner the education efforts at the heart of the legislation start, the better... More>>

ALSO:

3-Year Transport Plan: No Plans On Six Northland-Election Bridges

The Transport Authority’s decision to fund only four of the 10 bridges promised in National’s shameless Northland by-election bribe is a huge embarrassment for Transport Minister Simon Bridges, Labour’s Transport spokesperson Phil Twyford says. More>>

ALSO:

Gaza Blockade: Māori TV Crew Returning Safely From Israel

A Māori Television crew will be flown back from Israel after their boat was detained by the Israeli Navy while attempting to break the Gaza blockade. More>>

ALSO:

Family Violence: Increasing Reporting But Fewer Resolutions

“We are aware the Police have embarked on a significant programme of change in how they respond to family violence. The data suggests that adequate resourcing including investing in staff training, support and culture change will be required for this to be effective.” More>>

ALSO:

Health: NZ Children Still Suffer Rickets From Lack Of Vitamin D

Vitamin D deficiency continues to cause rickets in young New Zealanders, new University of Otago research has found. The researchers say that their finding suggests that at-risk mothers and children should be better targeted for Vitamin D supplementation. More>>

Also GPs, Housing, Milk: PM Press Conference On The UN Security Council

In a press conference today the Prime Minister discussed the upcoming appointment of New Zealand to chair the UN Security Council. He said they would put pressure Asad in Syria and attempt to “jump start” negotiations between Israel and Palestine. More>>

ALSO:

Housing: State Houses Could Sell To Overseas Groups

Bill English’s admission that he would sell hundreds of New Zealand’s state houses to the Australians is the latest lurch in the Government’s stumbling, half-baked housing policy, Labour’s housing spokesperson Phil Twyford says. More>>

ALSO:

AND:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news