MP happy with answers from Cadbury

Dunedin North MP David Clark is satisfied no significant changes to production are planned at Cadbury Confectionery Dunedin.

Concerned by publicity about a blog predicting the Dunedin plant's demise, Dr Clark contacted the company's Australian office yesterday.

The company remained committed to Dunedin, he told the Otago Daily Times.

In the commercial environment, the reality was that no company gave assurances "forever and a day", he said.

However, he believed the blog was regurgitating rumours spread in the wake of the 2009 job losses, when 160 jobs went.

About the same time, the company invested $51 million in its Dunedin plant, so it was extremely unlikely to walk away a couple of years later, Dr Clark said.

Former Dunedin North MP and former economic development minister Pete Hodgson agreed.

When contacted, he said it would be "most unlikely indeed" for the company to wind down production to any great extent given its significant investment.

In 2008, Mr Hodgson told the ODT Cadbury's future in Dunedin was more secure than it had been for 20 years.

Yesterday, the company declined to make further comment about the claims on the Whale Oil blog.

Chas Muir, of the Service and Food Workers Union, said the union was satisfied no further changes were afoot.

Earlier this year, about 20 workers lost significant portions of their pay because of a drop in crumb production.

Mr Muir did not believe further reductions were in store.

Dunedin City Council business development adviser Des Adamson said Cadbury was a "damn good company", and a "great employer" for the city.

Rumours about Cadbury's demise had circulated on and off for decades and he thought the current rumour was baseless.

- eileen.goodwin@odt.co.nz

 

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