First Victims of Restructuring

On June 21 over 60 Levin caravan workers were laid off as a result of the new sales tax on caravans. Soon after the new tax was announced, notice was given to the entire workforce employed in the caravan industry in Levin.

When the Government announced the new sales tax they said it would generate some extra revenue and would also "take some steam out of the economy." A combined delegation of employers and unions from the industry met the Minister who imposed the tax, Hugh Templeton. It was pointed out that the tax would not achieve its stated aims, and it could only bring unemployment to workers in the industry.

The delegation claimed that the caravan industry had already suffered a 27% sales drop this year and, like the rest of the economy, there was no steam to be taken out of it. It was estimated that the tax would result in an overall 50% drop in employment in the entire industry. Already about 15% of the caravan workers have been told their jobs are on the line. If sales slump further and workers are laid-off, as predicted, the Government will lose income taxes and company taxes as a result. Along with the dole for those unemployed, this will mean that the Government will not get any extra revenue as a result of this tax.

Both Templeton and the employers have proved very reluctant to lift a finger to ease the hardships faced by workers laid off. Talks between the union and employers over the issue of redundancy have been virtually fruitless.

As far as the workers in the industry know know, two out of every three of Levin's caravan assembly companies will close dc entirely, and the workforce of the third [unclear: v] be cut by over a half. Why has the [unclear: Goverment] imposed a tax which is causing thes lay-offs? According to Templeton, "It is not the Government's policy to create unemployment." The facts show that Templeton is a liar!

The only logic in the Government's sales tax on caravans is that the Government wants to close down the small businesses and turn the larger ones into monopolies. They hope that these large monopolies will then have the capacity to expo a portion of their products. This policy is called "restructuring."

The Government has altered its policy on the sales tax slightly to ease the squeez on the small manufacturers, to allow their to get out of the industry without being bankrupted. Only the workers will suffer in the Government's scheme of things.

On Monday June 18, the 60 angry caravan workers marched on Parliament to protest at Government solving its economic [unclear: piblems] at their expense. Three days later they joined the dole queues. And it is [unclear: thei] that they will be hit by another [unclear: unexpecte] blow. Not only will they now be called "dole bludgers" by the Government, their meagre allowance will now be taxed! The workers are always the ones that get hit the hardest in times of economic crisis. But they are fighting back. They are demanding the right to work.

The Levin caravan workers are the first victims of the Government's economic policy of closing down small businesses, throwing their employees out of work, and eventually diverting the resources into exporting. They will not be the last.