Ian McLean Green Scene Spokesperson for the Green Party

Second-hand traders are the big losers in a recent deal between the Ministry of Social Development (as WINZ) and Fisher & Paykel Appliances Ltd (now owned by the Chinese company, Haier).

These are small businesses, often family-owned, employing only a few people. They are scattered throughout our communities, and provide income for hundreds of families. There are at least 10 in Tauranga alone, for whom WINZ provided significant business.

The deal? When a hardship grant is awarded to a WINZ client, new Haier whiteware is delivered and paid for through benefit deductions.

The new whiteware costs about the same as second-hand; and the main savings are on maintenance. No doubt the two-year warranty helps that calculation, as the second-hand traders usually offered just three months.

The Ministry presents this deal as a win-win, in that money is saved and the client receives a new machine with a better warranty. But second-hand traders were not offered the opportunity to increase their warranty.

With the stroke of a pen, WINZ reduced recycling of current whiteware stock, increased imports, and supported an international company at the expense of small, community-based businesses.

This story is eerily reminiscent of the Dunedin engineering works (now closed). We were reminded of those lost jobs last week, when it emerged the cheap Chinese-made locomotives were finished in a livery of paint and asbestos.

It seems likely the WINZ client base will soon include unemployed local traders. One hopes the cost of those additional clients were included in the overall decision-making.

Contact: Ian G. McLean, 021 547556, 07 5794670, ian.mclean@greens.org.nz