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New Zealand yarn producer complains about emissions trading

24/11/2011
Woollen yarn manufacturer Qualityarns has blamed the New Zealand government and the attitudes of wool growers across the country for a loss of jobs at its factory in Milton on the South Island.

Qualityarns made eight of its 28 workers redundant on November 24 and has said more jobs are under threat.

Managing director, Mike Barra, has told Radio New Zealand that the arrival on the local market of cheaper yarns from China, after the two countries established a free trade agreement in 2008 is one of the main factors in the decision to lay workers off.

However, he also said that an emissions trading scheme, in which manufacturing companies have to buy emissions units to compensate for producing greenhouse gases, is unfairly punitive to companies like his. He has claimed that the scheme, in which different industries will pay different amounts, lacks "natural justice" and says it will add around 40 cents to the cost of every kilo of yarn his company produces.

Mr Barra also said local wool suppliers have been unsupportive because of the attraction of high prices for wool on the global market.

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