Another manufacturing exporter icon bites the dust

NZMEA Media Release - 17 April 2008

F&P closure – yet another manufacturing exporter icon bites the dust.

The New Zealand Manufacturers and Exporters Association (NZMEA), says that the closure of Fisher and Paykel’s Dunedin factory is yet another manifestation of failing policy framework. Particularly an interest based monetary policy that has seen speculation, not trade performance, driving exchange rates.

“Today’s announcement is a blow not only for Dunedin, but also the wider New Zealand economy”, says Chief Executive John Walley. “430 jobs have been lost directly, but the ramifications will be felt on a much wider basis as the supply chains that are built around that factory break down as well. As many as five jobs depend on each top tier-manufacturing employee indirectly through wages paid and directly through goods and services purchased”.

“Perhaps more importantly, skills and capabilities demanded by top tier manufacturers will be lost to us, both in term of volume and quality. If we have aspirations for an economy that is more than China’s farm, we should all be very concerned”.

“It is hard to criticise the decision by Fisher and Paykel because the necessity driving their decision is complex, but pressures of policy settings that generally bias against productive elaborate transformation and exports do not help retain activity in New Zealand”.

“If policy settings remain as they are, we can only expect more of the same. Our members’ wonder who really thinks events like these are good for New Zealand? ”, says Mr. Walley.

NZMEA – the authentic and independent voice for manufacturers and exporters.

ENDS

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