9 May 2012

Media Release

Transit NZ and IRD stomp on liquidated Auckland manufacturer putting over 50 jobs at risk

Today’s announcement that Auckland tube and wire products manufacturer, Wire by Design, has gone into liquidation over the non-payment of tax is the result of a government “botch-up” and must be urgently addressed to save over 50 jobs, says the Engineering, Printing and Manufacturing Union.

The Auckland factory was relocated to a new site following the compulsory purchase by Transit New Zealand for the construction of the State Highway (Waterview) extension. Wire by Design has been trying to get a relocation compensation claim sorted with the government for over three years.

“The company has lived up to its end of the bargain and done all it can to secure a fair compensation package that it is entitled to under the law,” says Joe Gallagher, EPMU National Industry Organiser. “Under the Public Works Act the Crown is obligated to relocate the business to alternative premises on a ‘like for like’ and ‘same functionality’ basis as enjoyed at the old site.”

Wire by Design called in the receivers Corporate Restructuring Ltd who will manage the company – an event brought on by Inland Revenue following the company’s inability to meet its tax commitments. However, Wire by Design believes it can continue to trade its way to financial viability and pay its tax bills if the government settles the compensation claim.

“We have been working with the company during this very difficult period and believe the business is sound with plenty of on-going orders on its books,” says Mr Gallagher. “But the government must come to the party and fix the compensation issue. Frankly, the whole thing is a botch up on the part of the government who’ve spent millions of tax-payer funds on lawyers, consultants and a still uncompleted relocation with the building not being compliant to local building codes.”

Mr Gallagher says Wire by Design’s future – and the jobs of over 50 workers - can be financially secured only if Transit New Zealand settles the compensation claim.

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