Commenting after the announcement by Norske Skog that it would halve production at its Tasman paper mill, in Kawerau, Mr Newson said the 100 jobs that could go were a sign of a growing jobs crisis in New Zealand.
As the job losses continued to pile up, it was becoming clearer how badly the Government's hands-off approach was failing New Zealand.
"Unless the Government changes course urgently, the jobs crisis will only get worse."
There was little that could be done to avoid falling demand overseas for product from the Kawerau mill but the high exchange rate had helped to make the mill uncompetitive and contributed to the loss of jobs, Mr Newson said.
It was particularly galling that at the same time Norske Skog was cutting jobs in New Zealand, it was investing in jobs across the Tasman thanks to the support of the Australian Government, he said.
"No-one is blaming the Government for the state of the global economy, but there are things it could be doing to help protect local jobs and encourage a thriving manufacturing sector so that people who do lose their jobs don't have to join the dole queue or leave for Australia to find work," Mr Newson said.
The company said it would close one of its two newsprint machines, reducing newsprint capacity at the mill by 150,000 tonnes. The closure was likely to occur early next year. The timing and any estimates of the number of employees affected would not be clear until a consultation process was completed.
The mill's general manager, Peter McCarty, said the decision, made after staff consultation, was driven by falling demand and unfavourable exchange rates that made large-scale exports to Asia unprofitable.
He said the mill would remain an important employer in the region and would continue to produce newsprint for the New Zealand, Australian and Pacific Island markets.
It was also pursuing a range of renewable energy opportunities.
Recent announcements
Solid Energy Huntly East mine - 120 redundancies
Solid Energy Spring Creek - 400 jobs at risk
Tiwai Point aluminium smelter - 65 jobs by November
Norske Skog - 100 paper mill jobs at risk
