There’s no crisis in manufacturing in New Zealand, says PM Key

The idea of crisis in manufacturing sector and plans to print money to save the industry has been dismissed by New Zealand Prime Minister, John Key.

According to Key the manufacturing industry was not in crisis and printing more money did not make sense.

Last weekend, a proposal to control the high NZ dollar to minimise job losses was launched by the Green Party.

Stuff.co.nz reports, co-leader Russel Norman has suggested the Reserve Bank use quantitative easing – the printing of more money – to buy earthquake bonds.

Norman stated that would help pay for the rebuild of Christchurch and bring down the exchange rate.

This idea has been criticised by Key.

Key explained that printing money had been disastrous in Zimbabwe, postwar Germany and Argentina.

"I don't think we have a crisis, I don't think it makes sense for New Zealand, I don't think it's worked very well in other countries, I don't think it would guarantee a lower exchange rate."

According to Key it would not necessarily reduce the exchange rate if major trading partners such as the United States were still doing worse than New Zealand.

Key stated that exports in the manufacturing sector were 11.7-11.9 per cent of gross domestic product.

He went on to say that the number of people employed in the sector had remained between 245,000 and 255,000 and in the last 12 months the sector grew about 2.5 per cent.

"So there might be a crisis in the Greens but it's not necessarily in the manufacturing sector when you actually look at the accurate data," Key added.

The Greens' figures has revealed a 17 per cent fall in the number of jobs in manufacturing sector since 2008.

It has also indicated a 12 per cent decline in manufactured exports and a 12.9 per cent drop in the sector's contribution to GDP.

The enforced quantitative easing has not been supported by Labour.

The Engineering, Printing and Manufacturing Union (EPMU) has called for an urgent meeting on Friday to tackle job crisis.