Ruapehu Mayor Weston Kirton has emphasised the urgent need to support the Winstone Pulp Mill near Ohakune, the largest employer in the Ruapehu District, amidst soaring electricity costs. The Mill's potential closure due to the high cost of electricity has sent shockwaves through the community and could have severe local and national repercussions.
"The Winstone Pulp Mill is crucial to the central North Island economy and New Zealand's overall economic health," said Mayor Kirton. "The high cost of electricity, which has surged by 600% over the past couple of years, is jeopardizing its operations. In September 2021, a Megawatt hour cost $100; it now stands at $700. Despite significant investments in new equipment and a 30% reduction in electricity use to boost productivity, Winstone is 'up against the wall.'"
The potential closure of the Mill would be a devastating blow, not only to the local and regional economy but also to New Zealand's already limited value-added manufacturing base. "In a country where most of our electricity is produced from renewable resources, mainly rain, this situation is unacceptable and highlights systemic and policy failures," added Mayor Kirton.
Mayor Kirton expressed his approval of Finance Minister Hon. Nicola Willis's actions in seeking urgent advice from Treasury on possible interventions for spiking electricity costs. He also supports Regional Development Minister Hon. Shane Jones's call for a substantive inquiry into electricity pricing to push down prices. "As Minister Jones pointed out, New Zealand has recently experienced the highest electricity costs in the western world, and we cannot allow our businesses to be destroyed by this."
Mayor Kirton calls on the government to act with urgency to ensure the Mill remains operational. "The importance of the Winstone Pulp Mill to the central North Island economy is comparable to the Tiwai Aluminum smelter's significance to Southland, which also faced closure due to long-term energy costs. With the government focused on growth and employment, a major export-earning employer should not be allowed to fail due to internal policy settings."
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