The New Zealand Council of Trade Unions Te Kauae Kaimahi has spoken out against the government for failing to bring a plan to the table to save around 300 jobs in the Ruapehu district, following Winstone Pulp International’s decision to close two mills.
Hundreds of people are set to lose their jobs after Winstone Pulp, one of the Central North Island’s biggest employers, announced this week it will be pulling the plug on the Karioi pulp mill and the Tangiwai sawmill for good.
NZCTU president Richard Wagstaff said the mill closures will be devastating for the Ruapehu district, which is already dealing with high unemployment and a lack of opportunities.
“Our hearts go out to all the workers who have lost their jobs, and we stand in solidarity with them at this terribly difficult time.
“Government has a responsibility to keep rural communities alive by supporting regional economic development and stepping in to show leadership when critical industries are struggling. Writing off whole communities is simply unacceptable.”
In recent weeks, the company had been meeting with energy company Mercury and government ministers to find a way to keep the mills open.
But the company made the call on Tuesday, September 10, to close the mills, blaming unsustainable spot energy prices.
Responding to the news of the closures, Octopus Energy said that New Zealand’s prolonged high electricity prices necessitate urgent regulatory changes for increased market competition and improved investment.
“The Electricity Authority has been warned for years by industry and exporters that market arrangements have made electricity uncompetitive and prices too high for our productive sector,” Octopus Energy chief operating officer Margaret Cooney said.
She said New Zealand urgently needs more competition and regulatory change to support better competition and investment in generation.
“We have been experiencing sustained high prices in New Zealand for almost six years. The way forward is not to simply hope for more rain in our lakes, or to import LNG. This is simply not enough to address the underlying challenge of continuing high prices.
“It is absolutely essential that the current review into the electricity market provides real action rather than deferring change.
She said she can’t imagine the amount of stress and upheaval for all the families and communities that are being impacted by the closure of these mills.
Wagstaff said the government had the power to keep the mill alive by creating a plan for power price stability, but it failed to deliver.
“Local manufacturing plays an important role in our regional economies and that needs to be protected into the future. It is the role of government to guarantee this by implementing employment, regional development and Just Transition strategies that prioritise job creation and protection in rural communities,” he said.
“Everyone deserves good work that is secure and pays well, regardless of where they live. This decision shows we have a long way to go to make that a reality.”
