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Taupo Major David Trevavas
photo: RNZ/Dom Thomas
Two central North Island mayors are pleading with the government to rescue a pulp mill that has Planned closure Causing electricity prices to soar.
Winstone Pulp falls under the jurisdiction of Ruapehu Mayor Weston Kirton.
He said he hopes to get a “lifeline” similar to what has been offered in other cases. Point to Tiwai Point.
“Some form of subsidy is a lifeline during this period. Obviously Lake levels and low yields But there will need to be some kind of rebate to really adjust to that over the next few months.”
Cotton said the company simply could not have predicted that electricity prices would rise so quickly and so high.
David Trewavas, mayor of neighbouring Taupo, said he sympathised with Kirton’s plight and believed its closure would also affect businesses in his area.
“I think we’re looking for a short-term solution to keep these companies going because once they go out of business, that’s it.”
The Company Considering exiting New Zealand as wholesale energy prices soarThe final decision will be announced on September 9. The closure of the plant will result in 230 job losses.
Kirton and Trewavas approached Prime Minister Christopher Luxon and Regional Development Minister Shane Jones at the Local Government New Zealand conference in Wellington this week. Jones invited them to work together on a proposal.
“We’re basically asking for help,” Taupo Mayor Trewa Wasi said.
“I’m not quite sure what the answer is … (but) we have to do something.”
He said they have just over two weeks before Winstone Pulp makes a final decision.
“They might talk about mothballing it, but once a sawmill is closed, it takes too long and costs too much to reopen,” he said.
“So once they make the decision, it’s all over.”
Trevavas said the Winston pulp mill was vital to the region’s GDP and losing it could be catastrophic.
“them This year’s electricity bill is 700% higher than last year” he said.
“If a company contributes so much to the community … you have to be able to come up with some structure to help them.”
He said the government had pledged to consider any short-term solutions proposed by parliament.
Mike Ryan, CEO of Winstone Pulp, said his company supports the mayors’ efforts.
He said he would continue working to “resolve the difficulties we face.”
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