More firms losing work to China

More small provincial clothing manufacturers are battling to survive after the Government slashed their contracts, sending the work to China.

Levin's Swazi Apparel owner Davey Hughes had a $2 million contract to supply the army's wet-weather gear slashed, and on the eve of the Government's jobs summit, three more small manufacturers say they face similar plights.

Feilding's W N Farrell Wholesale has been making shirts for the Defence Force for 10 years but owner Wayne Watkins said its contract had been cut by about 60 per cent. He laid off four staff and cut production from five to three or four days a week.

"It is very hard to keep going. We were always told the work would remain in New Zealand but now they are sending the bulk to China and Asia and making the rats and mice here.

"Our ladies rely on this work, they are hard-working machinists, do not have IT skills, there is nothing else for them. They do not seem to want these people any more."

Palmerston North's Academy Apparel owner Sally Poole was also looking at a 60 per cent cut in government contract work. "Our contracts are getting smaller and smaller. If Prime Minister John Key is trying to save jobs he should safeguard contracts in this country, like the United States and Australia has."

Another manufacturer who had lost a contract with the Defence Force did not want to be identified for fear of losing remaining work.

Mr Key said Kiwi companies should get a fair go from government departments, but ruled out following the lead of foreign governments which had given their industries preference. He was concerned there could be a backlash from countries where New Zealand companies did business.

"We are a small country that exports enormously to the world and we would not want to disrupt those contracts. New Zealand probably does a lot better with the goods and services we export offshore and the contracts New Zealand companies have with other governments," he said.

Commenting on Swazi's contract, Defence Force contacts stressed price was not the sole reason for deciding with their contractor Yakka Apparel Solutions to employ a supplier based overseas. "It was also based on quality and supply. The business we are in is to make sure the defence dollar is spent in the most effective way for the New Zealand taxpayer."

About 60 per cent of the Defence Force's clothing was made in New Zealand.

Mr Hughes has been asked to meet Mr Key and Defence Minister Wayne Mapp next week.

- © Fairfax NZ News