Cullen offers reassurance over job losses

Finance Minister Michael Cullen says the Government will try to help people who lose their jobs in an economic downturn.

Nearly 200 people nationwide were told yesterday they would be laid off as the strong dollar hit exports and interest rates remained high.

Dr Cullen said that despite the redundancies the labour market was still very strong and there were very good prospects for the workers who had been laid off.

"We've been forecasting a slowdown in the rate of growth in the economy for the last couple of years and it's finally happening," he said on National Radio.

"I've been very concerned about the high level of the dollar for much of that period, and at last other people seem to be sharing that concern."

Manufacturers who have closed or cut back production all blamed the high dollar and cheaper overseas products for their predicament.

Dr Cullen said unemployment was still running at about 3.5 per cent, which was the lowest in the developed world, and he thought people who had been laid off would be able to find new jobs quickly.

"We'll do everything we can to provide assistance to those people to obtain new employment," he said.

"A Labour-led government doesn't exist to see people going down the road."

National's finance spokesman, John Key, said his fear was that the redundancies announced over the last 48 hours were the tip of an iceberg.

"The Treasury said before Christmas that unemployment would go above 4 per cent -- it could be much more marked than that," he said.

"It's not terrible, but I feel for every New Zealander who loses their job."

Mr Key said economic problems included poor export performance, low wages and low productivity rates.

"We're not delivering the goods so we don't have the (higher) wage rates," he said.

- NZPA