Government agency accused of 'economic treachery'

The Green Party today accused the Government's Trade and Enterprise agency of "economic treachery" after it suggested a successful Levin manufacturer should move offshore.

Swazi Apparel employs 71 people making outdoor clothing, and its owner Davey Hughes said a senior Trade and Enterprise account manager told his company it would be better off having its products made overseas.

Mr Hughes rejected that, saying his priority was supporting the local community.

Green Party co-leader Rod Donald said the Government's strategy was to pursue free trade deals that would inevitably lead to the end of manufacturing in New Zealand.

"I believe that Trade and Industry is committing economic treachery by telling New Zealand manufacturers to sack their staff and move offshore," he told NZPA

Trade and Enterprise is the Government's national economic development agency.

Its specialised manufacturing director, David Penny, said it could not identify the comment made to Mr Hughes but it could have been flagged as a good option as part of wider discussions about company strategy.

Labour's Otaki MP Darren Hughes described the advice as "appalling" and Economic Development Minister Jim Anderton said it was not policy to encourage people to shift overseas.

Mr Donald said he was not blaming "a lowly official" for saying in plain English what the Government was saying with its economic jargon about free trade.

"No amount of denials is going to convince all those people who have already lost their jobs, and feel under threat because of a China free trade deal, to believe otherwise," he said.

"No matter what excuses Darren Hughes and Jim Anderton make, the fact is that the Government's trade strategy is all about pursuing free trade deals that will inevitably lead to the end of manufacturing in New Zealand."

Davey Hughes said he and his wife Marg had put a line in the sand and vowed to stay in New Zealand.

"We could turn this entire factory into a warehouse and just employ several people to dispatch the garments but there are about 70 people in our factory, many are single income earners who rely on us," he said.

Swazi Apparel started in a garage 11 years ago and provides clothing for 650 retail outlets worldwide.

It sub-contracts work to six companies in Horowhenua and Manawatu, which employ about 200 staff.

Engineering, Printing and Manufacturing Union secretary Andrew Little said he was surprised and disappointed that such advice would come from a government agency.

Workers at the factory would be hugely insulted, he said.

- NZPA