Green hypocrisy lobbying for Cadbury to stay open

The Green taliban have always been hypocrites, but you can’t find a starker example than their advocacy over trying to keep Cadbury open in Dunedin.

Green Party co-leader Metiria Turei is rebutting claims her party has a double standard over the closure of Dunedin’s Cadbury factory.

Ms Turei said yesterday the closure of the factory was “a tragedy for Dunedin and local manufacturing.”

Taxpayers’ Union executive director Jordan Williams says her comments “seem a bit hollow,” given the Greens are also advocating for a sugar tax, which would reduce spending on Cadbury chocolate.

“With not the slightest acknowledgement of irony, Ms Turei blames the government for the job losses because of apparent ‘inaction’ on manufacturing,” Mr Williams says.

“If by ‘action,’ Ms Turei means imposing the sorts of anti-consumer, anti-business, taxes like ones the Greens want to impose, then thank goodness the government isn’t following their advice.” 

Speaking to NBR Radio’s Grant Walker, Ms Turei says Mr Williams is being “incredibly callous.”

“Jordan Williams can complain about a non-existent tax – I’m worried about the families who now need certainty about how their lives will roll out over the next few years.”

Asked if a sugar tax would have ultimately ended up working against the factory, she says it would have made little difference.

“Cadbury is not moving because of tax – it pays tax, that’s not why it is going.”

She says advocates are needed in government and in the cabinet for manufacturing.

Even if that is producing sugar coated products?

Jordan Williams is right on this. The Greens are trying to tell us what we should eat and are large advocates of sugar taxes. But what Jordan Williams has done is bust the myth that sugar taxes work and Metiria Turei has admitted as much with her statement that a sugar tax would make “little difference”. If that is the case then why advocate for such a tax?

Ms Turei says there will be more closures of companies operating in New Zealand but owned internationally if the government does not start advocating for manufacturing.

“Manufacturing is part of New Zealand’s economy that has been slowing.”

That’s actually rubbish. Since holding an “inquiry” into manufacturing, the sector has gone gang-busters. It is just another lie by a politician who wouldn’t know the truth if it smacked her on her rather large and expanding posterior.

But the most recent BusinessNZ Performance of Manufacturing Index (PMI) paints a different picture.

Although growth in the manufacturing sector dipped slightly in January, it is still in expansion mode.

The seasonally adjusted PMI for January was 51.6 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).

“This was 2.6 points lower than December, and the lowest level of expansion since January 2015.  However, the sector has remained in expansion in almost all months since October 2012,” ManufacturingNZ executive director Catherine Beard says

Governments shouldn’t be “advocating for manufacturing”. If they did then no doubt it would be cart wheel and buggy whip manufacturers that Ms Turei would be wanting them to advocate for. People like Ms Turei will no doubt propose large subsidies for manufacturers like Cadbury, who have already availed themselves of over $2million in government grants to keep the factory open.

Governments should not provide subsidies. They distort markets. What they should do is provide an environment that is business friendly and with low taxes to ensure it is better for a business to build in NZ than to move off-shore or not even contemplate coming here in the first place.

It is also not for the government, or politicians or even idiot bloggers to dictate to a private company whether or not they close down their own factories. A company exists to return a profit and to return a portion of those profits to shareholders. It has none of the stupid social cohesion requirements that these politicians seem to think they do.  I don’t care if chocolate is made here or in Australia or Switzerland. I just want chocolate at a reasonable price and tasty.

 

– NBR

 


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