Support for tanneries in Argentina called into question
06/07/2016
The government of new president, Mauricio Macri, has said it wants to reduce the spend on a so-called productivity recovery programme, Repro, from around $70 million per year to nearer $50 million.
Companies receive monthly payments to help them pay workers’ salaries, which otherwise could be under threat. In the past, payments have been approved in circumstances such as a company buying out a business at risk of going into liquidation and receiving support from the government for helping to preserve jobs.
A new ministry of ‘modernisation’ that Mr Macri set up on taking power has been quoted in national newspapers as saying companies in receipt of Repro payments are now going to be subject to stricter controls and that Repro will now work “only for business that genuinely need it”.
At the moment, there are 39 business across Argentina benefiting from Repro. Twelve of these are in receipt of monthly payments of more than $65,000 and two of the 12 are tanneries: Curtume and Curtiembres Arlei. Arlei acquired a tannery in Las Toscas from rival group Sadesa at the start of this year; the facility was about to close.
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