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The seafood industry has warned of job losses and company collapses from the high New Zealand dollar.
"Hard working New Zealanders have already lost their jobs and businesses, and more will follow," Seafood Industry Council chief executive Owen Symmans said yesterday.
"Businesses will be forced to look overseas in order to reduce their production costs and mitigate this intractable combination of high exchange and interest rates and excessive Government spending.
"Every one cent rise in the exchange rate equates to a full year loss of $20 million for the sector."
He estimated the dollar's move in the past 12 months had cost the industry $120 million.
"The combination of high exchange rates, high interest rates, and growing government spending without a relative increase in productivity is disastrous for the seafood sector," he said.
He said increased government spending had added to inflationary pressures. Over the past five years, there had been a 38 per cent increase of Ministry of Fisheries staffing, while expenditure had risen 26 per cent.
New costs, including $8 million relating to greenhouse gas pricing, would add $16 million to the industry's costs this year.
- NZPA
