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Key says job losses show economic change

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Key says job losses show economic change

3News NZ

Prime Minister John Key said the New Zealand economy expanded 1.1 percent in the first quarter of this year, which was the third-highest rate in the OECD (AAP)

Prime Minister John Key said the New Zealand economy expanded 1.1 percent in the first quarter of this year, which was the third-highest rate in the OECD (AAP)

Prime Minister John Key says there will always be parts of the economy experiencing change and the newspaper industry is one of them.

He was responding to news last week that paper giant Norske Skog will permanently close one of its newsprint machines in Kawerau with the loss of more than 100 jobs.

The company will maintain production in Tasmania, where it is receiving state and federal government assistance.

Mr Key told Q+A today that demand was reducing for pulp and paper because people weren't buying newspapers.

"It's the same reason why APN have got the New Zealand Herald for sale. It's the same reason why Fairfax's print media around the world is struggling.

"It's because people are not going to the newspaper in the same way they used to. They are going online."

Mr Key said there were parts of the economy where for whatever reason there was a change of pattern.

"If you want to preserve what we've always done of course you can do that but that will deliver you an economy which is likely to produce not what the world wants but something quite different."

He said the New Zealand economy expanded 1.1 percent in the first quarter of this year, which was the third-highest rate in the OECD.

"So the point here is that we can't magic away the European recession or the US recession or the issues the world faces. What we can do is say how does New Zealand succeed on a global stage."

The answer was to be competitive and produce things that could be sold to the rest of the world.

NZN

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Comments

26/10/2012 4:47:29 p.m.

samantha wrote:

John Key just sits and watches jobs go. he seems to have no idea about supporting business and incentives to protect work and jobs,australian gov't has poured billions into some sectors to keep people in work as that is the way to stop a recession,just watching business lay off workers is the way to recession as the wages are what keeps the economy moving. no jobs no economy.

20/09/2012 8:14:24 a.m.

Julie wrote:

This govt hasn't got the answers to turn our economy around. The PM's advice that businesses must be more competitive is nonsense. As for newspapers going out of fashion, they seem to be doing very nicely here in NZ.

18/09/2012 10:38:24 a.m.

DIMIT wrote:

@Mike wrote: I'm getting a sick of this constant carping and moaning! It's clear someone pays you to be here to stample on & trash any discussion that is contrary to the wishes of Govt and/or Corporations with your usual predictable formula of bigoted misinformation, name calling & trashing of *the Peoples Voice*(same applies to your little friends, who know who they are)It's getting a little transparent & childish. @Wiseacre wrote: Yes as usual wisecare your comments are well thought out and the voice of reason that I think most non brainwashed bigoted New Zealanders would agree with. Economic change? Well the global financial crisis had a domino effect of suffering around the world. Was there equality in suffering? In 2007 pre- gfc 1% of US population held around 34.6% of US Wealth, by 2009 that 1% held around 37.1%? Now with the US printing $40 billion per month till whenever? We will see yet more suffering around the World, More Job losses.Key has no interest in People or in creating a Society or economy that is healthy for New Zealand. He is only interested in keeping the 1% in Power, It's all about the Money for the right people.What about helping small Business create quality jobs?At very least stop putting blocks in the way. NZ is in perfect shape for his Banking mates to come in and blunder. It's really a Capitalists dream.High unemployment, Low wages & working conditions. An extremely exploitable workforce (and spare workforce) Austerity measures have met little resistance. The Poor are been herded into cages like battery hens.Instead of protest like the rest of the World, Key has us attacking our most vulnerable as they are responsible for all Social & financial problems in NZ? The massive planned reduction in Costs it takes to look after our Sick, Disabled & Invalids (useless to Capitalist) are on track.The (TPP) boys will be impressed their offshore accounts will filled...

17/09/2012 6:55:26 p.m.

Mike wrote:

More leftist name calling and garbage. The lefties still wont address that our dollar is still lower than our trading partners like Aus/US/UK/EU/Japan. So if an advantage is not enough, the socalled lower dollar wont stop closures as the world moves away from newsprint, or that wool carpet has been in decline for 30 years, and the unions make industrial action in 18th century style.

Take NZ exports growth 2008-2011 of over 11% during recession - not too shabby. Labour export growth in boom years 2000-2005 of 5% - not enough to even match inflation! Our growth from added value from fonterra, or our growth in high-tech manufacturing. NZ can suceed if they work hard.

Take our min wage, mean wage, ave wage, even benefit levels as measured internationally. Now all of those have risen 2008-today. The left loonies keep complaining that Keys not closing the gap enough, but when the gap is reduced, they moan harder and do more name calling, introduce new conspiracy theories ... make more claims that inflation is the solution to all problems and if you tax rich into extinction that poor will magically learn to budget and live within their means, and money will magically bloom out their backsides ...

We live in NZ, not whatever the fantasy place the lefties are dreaming of as they are high on some substance.

17/09/2012 5:27:27 p.m.

vines wrote:

key could not care less they will lose their jobs through no fault of their own and then key and the national party will persecute them , that's right eddie aye . thats what the nats mean by success youy fools higher and higher unemployment is success for them , lower pay that's success to them , send all the work to kids in china , again that's success to national because it increases profits because they can pay children in other poor country s to do it . if the natio9nal party did not have mainstream media support brought and paid for like they do they would be on 20% in the polls and that's just the truth.

17/09/2012 1:05:49 p.m.

eddie wrote:

Ohh I do love when the lefties get together and sing from the same 'we hate national/Key' songsheet, and national are STILL high in the polls, Labour scraped over 30% whohoo...lol, delicious....and should be a reminder to all you lefties..YOU ARE IN THE MINORITY, voting NZ knew about partial asset sales 11mths before election and had worst defeat in 85yrs!! lol, your 'core' voters couldn't be bothered to vote...but I guess that's national/Key to blame too? heehee, wonderful

17/09/2012 10:22:01 a.m.

john parson wrote:

yes the previous Nat governments closed down the car assembly plants,woolen mills,brush factories,sewing factories,carpet mills,flour mills,and dozens more,they have a history of huge unemployment numbers.Yes and even took the cargo ships and inter island ferries off the run.So much for a dirtier future come about by the NATS

17/09/2012 10:19:23 a.m.

Wiseacre wrote:

We live in a society - the economy is just one component of that society. Government is elected to run society for the betterment of all, but this Government is running an economy rather than a society. We currently have an authoritarian Government run by crony capitalists & free-market fundamentalists. They talk down to the people as if they know best, calling people *moaners* when they dare to question the ability & authority of the powers-that-be. They impose *social obligations* on the weak & vulnerable whilst completely ignoring the reciprocal obligation to hold up their side of the social contract. In the world of the free-market fundamentalist, monetary values have usurped social values. Social values express a concern for others. The individual belongs to a community - a family, a tribe, a nation, humankind - whose interests take precedence over individual self-interest. But a free-market economy is anything but a community. Moral scruples become a hindrance in a dog-eat-dog world and everybody must look out for their own interests. In a purely free-market economy, it is the people unencumbered by consideration for others that are more likely to come out ahead. We keep hearing them talk about what must be done for the sake of the economy. How often do we hear them talk about what must be done for the sake of our society?

17/09/2012 10:04:08 a.m.

vicki wrote:

I am not wrong Aiden, John Key made a promise of a brighter future he has not delivered, until that happens you are the one who is wrong. This government has one news article where they say our economy is growing, yet another showing increased unemployment and that this is due to the global financial crisis? I don't have a choice but to live in this world, with this economic system - those who manage it owe us all a fiduciary duty to do it with prudence and provide a suitable standard of living for all. This is my birthright, I have worked hard all my life, I deserve, like every other citizen to have a job, health, security and food. I may not be a financial wizard like Mr Key, but I am not stupid and I do have human rights, as we all do.

17/09/2012 9:03:17 a.m.

aiden wrote:

actually david the export growth figures in that period were still in decline. Vicki you are aactually wrong, Australia is not doing well. The only part of the Aussie economy that has been above water is mining, which is now slowing down and experincing major layoffs. The rest of the economy has been struggling, the retail sector in Aussie has seen massive amounts of layoffs and shop closures. people, typically labour and their supporters live in a fantasy lad and have no knowledge or experience of the international situation and just how badly that does effect NZ