Tobacco Firm Denies Cheap Labour Drawcard

Source from:  Yahoo 04/28/2012

Imperial Tobacco denies it is expanding in New Zealand because of low wages, saying Petone was chosen over other international sites with much cheaper labour. The company is nearing completion of a $45million upgrade that will see it produce all of its products for Australia at its 80-year-old factory, resulting in about 50 new jobs. The project was highlighted as part of a growing trend of Australian companies investing in New Zealand because of lower business costs. Factory manager Michael McInnarney said the contract came up because a British American Tobacco factory, which had made Imperial's products under licence, was closing. "A variety of other sites around the world were looked at, but it was decided logistically and for transport costs that it made very good sense to base production in New Zealand," he said. Several Australian companies, including Heinz and Woolworths, have transferred hundreds of jobs across the Tasman, prompting claims that it was because of low wages. Enditem