Maroc - TIMBERBIZ.COM.AU - A La Une - 23/Aug 01:02

NZ Government working with councils on a solution to keep mills working

New Zealand Central North Island district mayors from Ruapehu, Kawerau and Taupo whose forestry mill operations are threatened by soaring electricity prices, have met with Prime Minister Hon Chris Luxon and Regional Development Minister Hon Shane Jones to discuss urgent actions to prevent the closure of mills and other export manufacturers. Source: Timberbiz Ruapehu Mayor Weston Kirton, Kawerau Mayor Faylene Tunui, and Taupo Mayor David Trewavas together with local iwi expressed united concern for the central North Island economy and its communities following Winstone Pulp International (WPI) announcement of plans to shut down its Tangiwai Sawmill and Karioi Pulpmill due to unsustainable energy costs. They warned that this impending closure is only the ‘tip of the iceberg’ unless an urgent solution is found for other New Zealand export manufacturers facing similar pressures from unsustainable energy costs. The mayors were ‘cautiously optimistic’ about the prospects of keeping WPI operational after their meeting with the Prime Minister and the Regional Development Minister. “There is no doubt that the Prime Minister and Minister Jones are acutely aware of what is at stake. They share our concerns for the economy and our communities, and want to find a workable solution,” said Mayor Kirton. “The government has demonstrated its commitment by inviting us to collaborate with WPI and present a proposal outlining what it would take to keep the mills operating. We are now working with urgency on developing a solution to put to them. “We are grateful for the government’s attention and support in addressing the immediate crisis facing WPI. The government has committed to considering whatever short-term solution we can put forward while they work to establish a long-term fix to prevent such a situation from arising again in the future,” he said.