Ruapehu Mayor, Weston Kirton says the potential closure of the Winstone Pulp Mill near Ohakune due to soaring electricity costs would have dire local and national repercussions.
The mill, which is the largest employer in the Ruapehu District with around 300 staff, has announced a two-week pause of operations.
“The Winstone Pulp Mill is crucial to the central North Island economy and New Zealand’s overall economic health,” said Mayor Kirton (pictured).
“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.'”
He said the 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.”
Mayor Kirton supports Finance Minister, Nicola Willis’s actions in seeking urgent advice from Treasury on possible interventions for spiking electricity costs.
He also backs Regional Development Minister, 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,” he said.
Mayor Kirton is calling 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 Aluminium 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,” he said.
