Half of 2008 manufacturing start ups have shut down

Over half of all manufacturing businesses that started up in 2008 have disappeared in the past four years, showing the industry has been gutted by the crisis, says Labour’s Economic Development spokesperson David Cunliffe.

“Statistics released today are proof of the crisis in manufacturing. Of the manufacturing businesses that started up in 2008 just 46 per cent have survived. If that’s not a crisis, what is?

“The figures make appalling reading for a government that claims to be creating the right environment for business.  The rate of new manufacturing businesses starting up has declined by a third in four years, from over 2,000 a year in 2008 to just 1,300 a year this year.

“Over that time over 8,000 manufacturing businesses have closed and 40,000 jobs have been lost. A terrible legacy of neglect.

“This shows John Key’s faith in ‘creative destruction’ is doomed. Last year over 1,800 manufacturers closed but merely 1,300 started up. That gap of 500 businesses is hundreds, if not thousands, of  people out of work.

“Meanwhile Tiwai Point is cutting $70 million in spending, leading to a fall in jobs for contractors in Southland.

“It’s time John Key admitted to the crisis and did something about it. Labour, the Greens and New Zealand First are determined to get to the bottom of it and find the solutions through our joint-Parliamentary inquiry.

“National MPs refuse to join as they are crisis deniers. They are letting New Zealanders down again.”