Kerre Woodham: Would you rather NZ jobs in a premium product or cheap materials?

What would you rather? New Zealand jobs in a premium product or cheap materials? The aluminium extrusion industry says the government's decision not to impose a safeguard on imports may have signed the New Zealand industry's death warrant. Under advice from MBIE, the government has rejected a request to give special temporary protection to the aluminium extrusion industry in the face of growing competition from offshore.

The industry, which manufactures aluminium into products such as windows and door frames, had asked the government for what is known as safeguard protection measures to give it time to adjust to the competition. However, Minister of Commerce Cameron Brewer decided the threshold for a safeguard measure had not been met, which is interesting because the MBIE report noted that the domestic industry had suffered serious injury in recent years. It also said the increase in imports was one source among many, including a contracting domestic market and cost increases. It said while a safeguard measure might help the domestic industry in the short term, it would be likely to raise prices for consumers and would not support New Zealand's trade goals.

However, it was odd because the industry, who was talking to Mike this morning, said that the MBIE officials had asked them to investigate taking a dumping case. Clearly MBIE thinks that there is a case there, or at least a case to be made, but in the meantime, they're not willing to put in the safeguard protections.

Dave Slomp, Managing Director of McKenney Aluminium Solutions says what they need in the short term to look after jobs and to ensure that a quality world class product remains on the market.

"We operate at world-class levels of quality, service, productivity, the envy of the world, and we're an industry that services the New Zealand market extremely well. And what we're seeing here is Chinese extrusion being landed in New Zealand for less than what extruders pay for the raw billet that we make extrusions out of."

When you are bringing in a product for less than the price of the material in the home country, that is dumping, pure and simple. You would have thought it was an open and shut case. He said it's going to put the country's manufacturers' skilled jobs and critical industry capability at immediate risk. And all very well and good for those of us who want to buy aluminium extrusion products thinking, "Oh yay, they're cheap as chips because the Chinese are dumping their prod