F&P closure: the logical extension of a flawed monetary policy

Green Media Release 26th April 2007

The Green Party has reacted with shock at the decision of Fisher and Paykel to close its Auckland washing machine manufacturing plant and shift production to Thailand.

“This announcement comes on the same day that the Reserve Bank raised the cash rate by another .25% that will, in turn, increase the value of the NZ dollar and put further pressure on the New Zealand manufacturing sector,” says Russel Norman, Green Party Co-leader and Economic and Trade spokesperson.

Green Party Economic Development and Employment spokesperson, Sue Bradford, says that this announcement of 350 job losses is the largest but only one of a number of manufacturing closures and job loss announcements that has been made over the last few weeks.

“Fisher & Paykel is seen as an iconic NZ manufacturing company,” Sue Bradford says. “I am therefore very disturbed not only to hear today’s announcement of 350 job losses, but also the statement of F&P Managing Director Jon Bongard when he says there are no guarantees the rest of the company’s manufacturing jobs won't one day also be moved off-shore.

“The Government has supported the Manufacturing + programme, the Competitive Manufacturing Initiative, Export Year and the Greens’ Buy Kiwi Made campaign. However none of these programmes will be able to fulfil their potential if the Reserve Bank policy continues to throttle the productive sector of New Zealand,” Sue Bradford said.

Green Party Co-leader Russel Norman says that the interest rate, exchange rate crisis has now got to a stage that democratically elected political parties can no longer sit impotently on the sidelines.

“I think it’s time for the economics spokespeople from all parties to put their heads together to see if there is some way that we can rein in these policies of the Reserve Bank that are undermining the New Zealand economy and look for alternative policies to address the serious economic situation that the country is in,” he says.

ENDS

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