Mill job losses: Rangitīkei MP 'gutted', concerned for regional economy

Rangitīkei MP Suze Redmayne says the closure of two mills in her electorate will be "absolutely devastating" and will have impacts on the wider local economy.

The local MP said she has lobbied for the community but to no avail. Opposition MPs claim more could've been done.

This afternoon, it was revealed the mills will close, leaving around 230 people jobless.

Winstone Pulp International (WPI) chief executive Mike Ryan said it could not "offset the dual impacts of internationally uncompetitive energy prices in New Zealand, and the relatively low current and forecast market prices for pulp and timber".

In response to news of the closure, Redmayne said she was "absolutely gutted for my community", adding that it was "devastating".

She said while it was 230 jobs the "implications are much wider than that" because of its impacts on the wider regional economy.

"There's families that have got three generations working there," Redmayne said.

"It's going to have massive impacts. Some of them will probably have to leave to go and find work elsewhere.

"We've got people [at the mill] who have partners who work in the health service — at the moment our health service is struggling to get staff — so it makes a massive difference."

She said the mill, as the biggest single employer in her electorate, was a "reliable source of income" and a "great employer".

"They looked after our communities, everyone loved working there."

Asked whether the Government could make a difference, she said: "What we are doing, to future-proof it so it doesn't happen again, is to ensuring a reliable and affordable supply of electricity into the future."

The MP said she had "of course" lobbied the relevant ministers.

"I talked to the community, I talked to iwi, and I talked to the ministers. The ministers did do a lot of work behind the scenes — they had meetings. [Minister] Louise Upston was involved, Simeon [Brown] was involved, Todd McClay was involved — so we did a huge amount of work behind the scenes.

"But at the end of the day when the sun doesn't shine, and there's no rain and we've got not enough water to produce power and we rely on coal from overseas, it doesn't work."

She said 40 families in Taihape alone had workers at the mill.

"I'm talking to [Taupō MP] Louise [Upston] this afternoon, we're going to be doing everything we can to support our local communities.

"We can talk to them, to start with — I'm not really sure what we can do at this stage ... I will be there and I will continue to lobby for them and fight for them and advocate for them."

Upston, who is also the Social Development Minister, told 1News the announcement was "really sad for all of the families involved" and the workers who had lost their jobs.

"I really feel for them right now.

"It is challenging, the reality of these very high energy prices has had an impact."

She said the Ministry of Social Development was "ready to go" and was already talking to large employers in the region to investigate ways to redeploy people into the workforce.

"For some people, it might mean doing some retraining."

Energy Minister Simeon Brown said the mill closures were a bad day for the Ruapehu District. He told RNZ the Government opted not to intervene in the closure as it was a commercial decision.

Brown said the Government was working quickly to ensure the country had reliable and globally competitive energy prices and was taking urgent action to lower the cost of energy by reversing offshore oil and gas exploration bans and fast-tracking consents.

He said the Government had also set up an energy competition task force to tackle volatile wholesale market prices.

Meanwhile, Te Tai Hauāuru MP Debbie Ngarewa-Packer said she was also devastated by the closures. The local MP, who is also Te Pāti Māori's co-leader, said the "pressure must continue on the Government".

"Our community deserves more, and pressure must continue on the Government, whom I urge to work towards an enduring regional solution that supports the economic well-being of the affected whānau," she said.

"This community has faced the withdrawal of plans to build 44 houses, disruptions to the ski field, uncertainty around the Chateau, and now this closure. Rural New Zealand has been really let down."

Before today's announcement, Ngarewa-Packer said she wrote to several government ministers requesting an "urgent intervention" after discussions with local officials.

Labour small business and manufacturing spokesperson Helen White said she was "devastated" for the workers who would lose their jobs, and for the future of manufacturing in New Zealand.

"We had earlier called on the Government to help find a solution and keep the mills operating in New Zealand. They haven't succeeded, which means 230 people from the mills near Raetihi will lose their jobs.

"This is a rural area where there is little other work. These jobs support the town, local community and small businesses, which will also face closure as people are forced to leave and wages dry up.

"Where is the Government's plans for the future of manufacturing in New Zealand? We must invest in onshore manufacturing and creating value from our primary products which is good for our economy and people in our regions."

She said there were options to keep the mills open.

"There are energy companies that have published significant profits over the last 12 months and the Government has therefore received higher dividends from its shares in these companies.

"I am disappointed the Government hasn't worked harder to save these jobs and support this central North Island community."

Reacting to the announcement, Green Party energy spokesperson Scott Willis said the closures were the consequence of inaction to move to renewables.

"These closures and job losses are a damning indictment on the Government’s failure to address chronic flaws in our electricity market," he said.

"We can build an electricity network that puts people and planet before profit, one that supports our communities without costing our climate. But instead, we have had short-term thinking and a lack of Government leadership.

"These closures and the jobs cuts that come with them are a consequence of successive governments failing to address the need for a sustainable and secure energy transition.

"When the electricity market sees major price spikes it's enormously challenging for businesses to operate in such an environment. The current Government had an opportunity to act in response to this, but it didn't."

Meanwhile, ACT energy spokesperson Simon Court blamed the closure on the previous government's policies.

"The previous government's kamikaze approach to climate change crashed the reliability of our energy supply," he said.

"We need to get real about the role of gas in our energy supply, focus on lowering costs instead of spending on boondoggles, and restore New Zealand's status as a safe place to invest. Restoring energy security will take time but sadly Winstone Pulp's workers have none.

"Many will leave Ruapehu for greener economic pastures, taking their families with them, and leaving fewer customers and workers behind for the remaining shops and factories."

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