Parliament

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

Turei To Be Interviewed By MSD: Gordon Campbell On The Real Truth Deficit In Welfare

It has been astonishing to see the amount of time and energy being spent on what Greens co-leader Metiria Turei did or didn’t do properly as a beneficiary back in the early 1990s – as compared to how little time and energy is being put into the point of her personal example.

Turei was citing her case in order to query whether much has changed – especially when it comes down to whether the current benefit levels and targeting rules at WINZ are helping or hindering today’s beneficiaries to escape from poverty. More>>

 

Gordon Campbell: On The Bojo Visit

British Foreign Minister Boris Johnson is in town, just over a year since his political career peaked… and then wobbled off into a grey zone of indecision… Currently, Johnson is touring the former colonies, talking up the historical ties. More>>

ALSO:

Tertiary Ed: Government Responds To Productivity Commission

The work programme will focus on four key areas. • Creating a more student-centred system • Meeting the needs of industry through relevant, responsive, and supportive teaching • Improving performance across the system • Enabling and encouraging innovative new models and providers More>>

ALSO:

PM's Science Advisor: Youth Suicide In NZ Discussion Paper

The paper discusses the multiple factors involved in youth suicide and possible and evidence-based approaches to prevention. It points out the very different context in which young people now live their lives and the challenges of the transition from childhood to adulthood. More>>

ALSO:

Drug Deaths: Accurate Information Is Vital

Drug Foundation: The spike in hospital admissions and reported deaths in Auckland as a result of people taking unknown substances is not being helped by an information vacuum. More>>

ALSO:

Backing Dunne & Seymour: National Signals Election Intentions

“We are encouraging National supporters to give their electorate vote to ACT candidate, David Seymour, in Epsom, and United Future candidate, Peter Dunne, in Ohariu – and their party vote to National." More>>

ALSO:

Climate Policy: Govt's New Proposals For ETS

“Last year, as a result of stage one of the review, we announced the phase out of the one-for-two measure in the ETS. I am now announcing further changes as a result of stage two of the review.” More>>

ALSO:

PM's Press Conference: Boris, Infrastructure, Immigration, Drugs

Prime Minister Bill English opened this week's post-cabinet press conference by revisiting that day's announcement of 'Crown Infrastructure Partners'... More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election