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Local jobs lost to subsidise Australian company losses

Te Ururoa Flavell
Māori Party Co-Leader | MP for Waiariki

6th September 2013

Local jobs lost to subsidise Australian company losses

Waiariki MP Te Ururoa Flavell is outraged that local contractors have had to lay off staff and are facing bankruptcy as a result of issues with payment from Transfield, a large Australian engineering company.

“I have been contacted by a number of companies who are owed around $800,000 and they report that they are resorting to laying off most of their staff. There appears to be little certainty over when this matter might be resolved with one contractor being told that it may be October before they see any money” said Flavell.

Contractors report that they have continued to work over the last few months despite pay issues beginning to arise. Transfield is contracted to work on the Ultra-Fast Broadband roll out but the progress of the roll out may be jeopardised as workers who need to provide an income to their families find other jobs while the problems persist.

Transfield’s parent company in Australia had suffered significant losses in the last financial year and subcontractors are worried that their wages are being sucked back overseas to support a failing company whilst putting the livelihoods of New Zealand workers in jeopardy.

“I support my constituents’ call for immediate action to address this contractor of the government to resolve these issues and where appropriate make reparation for the losses” said Flavell. “The Maori Party is concerned that the livelihood of too many whanau is being threatened with little thought being given to their wellbeing. This is a crisis not of their making and we expect all relevant Ministers to work together for a quick and durable solution”.


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