Headline: PM needs to get his head out of the sand and talk to manufacturers
John Key needs to get with reality. The message from business owners, workers, and the official statistics is clear: manufacturing has declined dramatically since 2008 and is still in decline
The Prime Minister’s denial of the crisis in manufacturing show that he is completely out of touch with reality and needs to spend time talking to real businesspeople and workers, Green Party Co-leader Dr Russel Norman said today.
The Report of the Parliamentary Inquiry into Manufacturing lays out a solid and practical plan to turn around the decline in manufacturing. Prime Minister John Key has responded by denying that there’s a crisis in manufacturing and hurling insults at those involved in the Inquiry.
“John Key needs to get with reality. The message from business owners, workers, and the official statistics is clear: manufacturing has declined dramatically since 2008 and is still in decline,” said Dr Norman.
“Just last Friday, we lost another 84 highly-skilled, well-paid manufacturing jobs at Safe Air, which will be a massive blow to the Blenheim economy.
“National was invited to join with us in a select committee inquiry to talk to manufacturers and workers about the challenges they face. Instead, they snubbed them and blocked the select committee inquiry. National refuses to face the existence of the crisis in manufacturing because it has no answers.
“In denying the crisis, Mr Key is effectively saying that the Manufacturers’ and Exporters Association, the Engineering, Printing, and Manufacturing Union, and all the businesses and individuals who contributed to the manufacturing report are liars. He’s saying that they’re making it up when they talk of job losses and businesses going under.
“The facts show that it is Mr Key who is out of touch with reality.
• Statistics New Zealand’s Quarterly Employment Survey shows 40,000 manufacturing jobs lost since 2008, including 6,000 lost in the past year.
• Statistics New Zealand’s Overseas Merchandise Trade series shows manufactured exports are down 16% since 2008, including a $770m decline in the past year.
• Statistics New Zealand’s Business Demography Survey shows that the number of manufacturing firms has fallen by 7.7%, including a loss of 400 in the most recent year.
• Statistics New Zealand’s Annual Enterprise Survey shows profits of manufacturing companies down 17.2% since 2008.
“All Mr Key can point at is one issue of the Performance of Manufacturing Index. The PMI isn’t an official figure, it’s a bank survey. And, crucially, it’s a survey of businesses. You can’t survey a business that’s closed.
“The Green Party, alongside Labour, New Zealand First, and MANA, has presented a real alternative that will create jobs and better wages by backing manufacturing. All Mr Key has to offer is insults to the manufacturing industry and denial,” said Dr Norman.
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