Wine industry faces tough year
By CLAIRE CONNELL - The Marlborough Express
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The Marlborough wine industry will need to batten down the hatches for a tough year ahead as grape prices remain low, potentially hitting the industry hard in the pocket, Deputy Prime Minister Bill English says.
While New Zealand was on its way up from "rock bottom", Mr English said the wine industry's fast growth had to be consolidated at some stage.
"At the same time as it needs to consolidate, its markets aren't doing well. I'm sure they will fight their way through it," he said.
Mr English was in Blenheim yesterday speaking to Marlborough industry leaders as part of the Marlborough Chamber of Commerce Economic Summit.
The Deputy Prime Minister, Minister of Finance and Minister for Infrastructure told The Marlborough Express New Zealand's economy hit "rock bottom" three months ago but things were now on the up.
"We are certainly on the road to recovery, but I expect it to be a bit bumpy for the next year or so."
He said Marlborough's path through the recession had been "patchy".
"Some people have felt reasonably hard hit, some people haven't really noticed. That's a feature of a lot of the provincial areas."
Many Marlborough exporters were concerned about the high exchange rate which they have had to cope with for several years.
"They're asking me if there is something the Government can do about it. Unfortunately, we understand the problem but there is no obvious solution to it," he said.
Mr English said he was impressed with the Marlborough business community's resilience. He said rather than complaining, they were thinking how they could do a better job, get better skills and training for their staff and looking to attract investment.
Nationwide, uptake in the nine-day-fortnight had also been less than the Government had expected, Mr English said.
More than 40 businesses nationwide are involved in the scheme, with more than 400 jobs saved and 4000 workers involved.
However, Mr English said it could be viewed as good news that fewer businesses needed the scheme.
"I think everyone was aware of it. Businesses needed to get agreement from the workforce and the management needed to agree ... and it didn't suit everybody."
He said the unemployment outlook was expected to be lower and arrive sooner than the Government had predicted.
Job availability, job security, and pay rises, were the three main issues for New Zealanders on average wages, he said.
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•band wagoners •speculators
ya did it to yourselves Marlborough!!!