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A Swazi machinist works on an Army uniform - Source: ONE News -
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The Defence Force is being criticised after a Kiwi clothing company was stripped of a $2 million contract in favour of offshore interests.
Swazi Apparel, based in the lower North Island town of Levin, has been making wet weather gear for the armed services for the past three years but now the clothing is set to be made in China.
"It's a massive hit emotionally as well. But we'll bounce back from it. We're a positive people here," says Davey Hughes, Swazi co-owner.
The $2 million Defence Force contract for the small Levin firm is being cut by up to 90% and the work sent to China.
The Defence Force says the decision was made by an Australian firm that oversees the contract on the grounds of performance and price.
"Any major increase was simply based on the New Zealand dollar falling so sharply," says Hughes.
But the National Distribution Union, representing clothing workers, is expecting other contracts including uniforms for ambulance staff are also at risk of going offshore.
"In America you can't provide uniforms to the defence force if you are an overseas supplier. There is a law that prevents it. Most countries do a lot more to protect local manufacturing than we do and this nonsense has to stop," says Laila Harre, National Distribution Union National Secretary.
The Defence Force's contract with the Australian firm is not up for renewal until next year.
"We have to comply with out obligations under the World Trade Organisation and in particular the agreement with Australia, CER. But within the context of that we've got to do the best that we can for New Zealand workers and New Zealand manufacturers," says Wayne Mapp, Defence Minister.
Swazi's co-owner says he will do all he can to prevent job losses for his 70 staff. He is hoping a meeting with the Defence Minister next week will help prevent this happening to anyone else.
