Army clothing contract moved to China!!!

[Lovelee]

Army clothing contract moved to China

Updated at 8:39am on 26 February 2009

A Levin manufacturer is fuming over a decision to end the Army's $2 million clothing contract with his firm, and have the clothing supplied from China instead.

Swazi Apparel manufactures raincoats and water-proof boot liners for the Army in a contract worth up to 20% of the company's turnover.

Owner Davey Hughes says there is a clear conflict between the aims of the Government's job summit on Friday, being attended by the Army, and the loss of his contract.

Mr Hughes says he and his staff will be coming up with as many ways as possible of keeping the workers employed.

"We're pretty tough in the provinces - we're going to dig our toes in, we're going to be as innovative and assertive in our marketing as we possibly can."

Defence Minister Wayne Mapp told Morning Report the Army contract is with an Australian company, which sub-contracted to Swazi.

Dr Mapp says he will look further into the contracts when they come up for renewal next year to see whether New Zealand manufacturers can be given better opportunities.

http://www.radionz.co.nz/news/stories/2009/02/26/12459eca0858

This is just ridiculous!! 

[wgtngirl]

So much for investing in NZ made.  Bloody ridiculous

[donquixotenz]

 I believe this is a flow on of chairperson Helen's CER efforts to undermine New Zealands working class.
Expect more of these slow fused crackers to go off over the next few months. Especially considering that in the last year of their tenure they appointed many of their trained toadies to decision maling positions throughout the Public Service and SOE's and as yet the Nats have to uncover them and then figure out how to get rid of them..........SOP in any change of Govt. and the newbies spend the first three years trying to put out all the bushfires...........

[guest49]

I was listening to this on morning report.
The problem is that NZ dont hold the original contract, its held by the Austalian Yakka company under the CER agreement which more or less stated that Aussie and Kiwi companies are treated the same in contract bids.
Yakka can go where they get the cheapest deal and NZ can do precious little about it.  I imagine the Australian governmnent may be able to bring pressure to bear on them, but whether they would bother is moot.

[Lovelee]

YUP - lets blame Helen for the Army making this mad arse decision!!

Lets just shift the blame to someone else.

[donquixotenz]

cancel the contract with the aussies then

[k1w14ever]

well they alow these country to take over and sew these clothes at a cheap price nothing will change.

This all started in the late 80's when the govenment of the day changed the import export laws.  I know the clothing company I worked for at the time had to let about 30 people go within weeks because some of the clothes we sewed where aloud to come into NZ so cheap the boss could not aford to make them in NZ. 

The same thing is happening here, even good old vegemite is or will be made over seas.

If govenments don't change the laws it is only going to get alot worse.

[k1w14ever]

here 180 people  have lost there jobs because the clothing line off shore.
I am trying to find the site where it shows all the makes that are going off shore.  I know one of them is bonds will have a look

[bump head benny]

Remember that Ozzie camo gear that glowed in the dark?...wasnt that made in friggin China?

[guest49]

cancel the contract with the aussies then

I imagine the penalty clauses would be quite a disincentive.  Remember, the contract was formulated when there wasnt an economic cloud in the sky, now things are tough, we cant just abrogate agreements at teh drop of a hat.

If govenments don't change the laws it is only going to get alot worse

Its far more complex than that.  There are trade agreements in force that cannot lightly be set aside.  Governments have to cansider the future as well as the present, no matter what we as the general public may think of one particular matter that is currently in the lime-light.

[donquixotenz]

I thought vegemite was made in aus and shipped here in tubes for local packaging?
If being made in china It will be off the menue as fk knows what will be in it>>>>>>>>

[guest49]

as fk knows what will be in it

Melamine?

[Lovelee]

The truth is - we are in a free market with China.

So how about this.  Wages in China are dirt cheap -

why dont we just ditch our military and bring the Chinese army here - hell - they could still defend China if they sent us 500,000 military and their equipment!!

[Lovelee]

Defence Minister Wayne Mapp says he is going to find out what he can do about a $2 million Defence Force contract that is being shifted from New Zealand to China.

Levin clothing manufacturer Swazi Apparel has made wet weather gear for troops the past three years but the Defence Force says the contract will be cut by 93 per cent - more than $1.9 million - this year.

Swazi owner Davey Hughes said he felt "saddened and deeply disillusioned" after being given the news, the Dominion Post reported today.

"As a New Zealander I feel deeply betrayed. As an employer I am lost for words to deliver my staff," he said.

Dr Mapp said one of the problems was that the main Defence Force contract was with an Australian company, Yakka Apparel Solutions, and Swazi was a sub contractor.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10558868&ref=rss

[Kiwithrottlejockey]

THANKS NATIONAL


Well....they ARE the government now and it is ALWAYS the government's fault.

Plus....National SUPPORTED the Free Trade Agreement with China and ALL their MPs voted for it! 

[chevy]

Im obviously from Levin, born and raised here 39yrs ago.

Govt can bail Fisher &Paykels misrable Ass out [who will end up abusing the bail out $$funds then sack everyone anyway]  but not small town where the workers spend their hard earned cash at local Market Gardeners, Supermarkets, clothing stores, petrol stations etc

[Lovelee]

Im obviously from Levin, born and raised here 39yrs ago.

Govt can bail Fisher &Paykels misrable Ass out [who will end up abusing the bail out $$funds then sack everyone anyway]  but not small town where the workers spend their hard earned cash at local Market Gardeners, Supermarkets, clothing stores, petrol stations etc

HEAR HEAR

[Ferney]

Where have you people been for the past 20 years ??   or did you turn a blind eye to manufacturing going to China and elsewhere until it came to your town. 

[guest49]

There is a subtle difference between a private individual or company dealing with foreign companies and a government, which is supposed to be looking after its peoples welfare in times of trouble

[Lovelee]

Where have you people been for the past 20 years ??   or did you turn a blind eye to manufacturing going to China and elsewhere until it came to your town. 

I think this is more about our military clothing being made here, than it is about a pair of chinese made socks, or Warehouse shoes from China and Vietnam.

[Crusader]

I posted this on another blog but still applies


Helen Clark and Micheal Cullen let this country's finances rot. Because of this John has told all state sectors they will not be getting any extra funding for a while so they have to manage with existing funding. If the Defence Force can reduce costs in clothing manufacturing then what is the problem??? They are here to protect this country not prop up local business's.

[guest49]

Quite.
So it makes sense to you, to employ workers in a far country and in consequence put workers here on to welfare.
for some reason, I just cant see the sense in that.

[Lovelee]

let this country's finances rot.

I understood the new govt were happy with the books.

Naturally much has been lost through the economic situation, but its impossible to blame the govt for that, it wouldnt matter if Social Credit were in, the money would still have been lost.

[Crusader]

Why is the outcome of workers of a company here the responsibility of the Defence Force? They are there to make sure they keep their operating costs to a minimum.

[Ferney]

That sounds fair.  Subsidised manufacturing for the government and everyone else has to compete with cheap imports.  Yeah, really fair.