Monday June 17, 2013

Emerging consensus on manufacturing welcome

A union representing workers in textiles and wood processing is welcoming the emerging consensus around a new way forward for manufacturing.

In Christchurch this morning Opposition parties released the final report of their inquiry into manufacturing.

FIRST Union General Secretary Robert Reid said manufacturing was still New Zealand’s third largest employing industry, and every New Zealander had a stake in its success.

“While the current government is prepared to sit back and watch the high and volatile New Zealand Dollar punish the export manufacturing sector, it is heartening to know Opposition parties are making a good attempt to come up with policy solutions for manufacturing,” Robert Reid said.

“Friday’s Performance of Manufacturing Index contained some encouraging results, but the sector is still one under considerable pressure.”

“Of course, the government cannot create demand for our manufactured products overseas, but it can exercise smarter control over things it can influence. Our union has long called for changes to monetary policy to reorient the focus towards domestic manufacturing and jobs, and we are pleased that this is a primary recommendation of the Inquiry.”

Robert Reid said the inquiry’s recommendations on procurement were welcome.

“Government procurement was raised as one of the top 20 issues at the Prime Minister’s Jobs Summit in 2009, but the procurement agenda was quickly twisted away from jobs and into saving a few dollars for the government.”

“A focus on lowest cost alone takes a remarkably short term view of procurement and ignores the primary and secondary jobs created when goods are manufactured locally.”

“Despite some movement from Steven Joyce on this matter earlier this year, much stronger buy-local provisions are needed, as is the norm with our trading partners like Australia, where infrastructure projects often have a minimum local content provision facilitated through Industry Participation Plans,” Robert Reid said.

The inquiry heard from FIRST Union at its hearings in Auckland, and later from a former FIRST Union delegate and worker at Summit Wool Spinners in Oamaru at its hearings in Dunedin.

Ends.

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