CTU MEDIA RELEASE 17 April 2008

The $61 million dollar question - how much is enough?

"With an after tax profit last year of $61 million, how much money for shareholders does Fisher and Paykel Appliances, a profitable company, think they really need?" Council of Trade Unions president Helen Kelly said today.

"The company's announcement today should be seen for what it is - a move to make redundant hundreds of skilled workers in order to maximise profits by shifting production to countries where labour is cheap."

"This move will take a heavy toll on Mosgiel and the wider Dunedin community. These were good jobs that didn't need to be lost."

"Today's announcement reinforces the need for an acceleration of investment in modernisation, infrastructure and skills in New Zealand."

"We acknowledge the significant investment in skills by this government but we want to accelerate this, see significant uptake of technology and research and development and use of the R & D tax credits, and ongoing investment in infrastructure like broadband and transport."

The CTU has also supported changes to monetary policy to relieve pressure on the exchange rate and reduce interest rates, Helen Kelly said.

"There is a whole programme of lifting investment in New Zealand that we are focused on, and this is the only way to secure New Zealand's future."

ENDS

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