PM promises 'new ideas' on jobs

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Prime Minister John Key is pledging to outline new ideas to combat the rising tide of job losses after another day of redundancies and shop closures.

Clothing manufacturer and retailer Pumpkin Patch yesterday became the second textile company in as many days to close stores, shutting 20 of its 35 United States outlets because of a fall in export orders.

Line 7, a manufacturer of nautical clothing, shut its 11 New Zealand stores this week when it went into receivership. About 120 jobs are on the line.

The Ministry of Social Development said yesterday it was axing 550 positions, although 335 new roles will be created. Chief executive Peter Hughes says the "worst-case" scenario is 200 redundancies. Cuts include 80 positions at Child, Youth and Family, including 18 social workers who deal with educating communities about child abuse.

Some of the affected 80 staff will be redeployed.

The continuing layoffs are heaping more pressure on the Government, and Key said yesterday he had a plan to mitigate rising unemployment.

"We've got an economic strategy ... and I intend over the next few weeks to spell out my thinking in that area," he said. "But we can't escape the fact that we are in a global recession."

Labour again attacked the Government over rising redundancies, with leader Phil Goff saying it had a "perverted sense" of priorities, funding private education and boot camps but reducing funding for specialist child abuse teams.

Goff said Key had boasted of saving an "iconic" New Zealand company, Fisher & Paykel Appliances, so "one would presume that he'd be interested in saving an iconic clothing firm".

But Line 7's chief executive, Ross Munro, said he did not want a taxpayer bail out. While he hoped the company could be sold as a going concern, a wind-down was more likely.

Key said the Government was creating jobs by averting a credit downgrade, infrastructure spending and running a $7 billion deficit.

The Public Service Association said it was concerned the MSD was cutting jobs at a time of rising unemployment. PSA national secretary Brenda Pilott said under the change 12 CYF service centres would be closed, including three in Christchurch, Nelson and Dunedin.

Pilott said the positions provided vital support to those on the front line, particularly social workers who educated teachers and others working with children on detecting child abuse.

- © Fairfax NZ News