Taupō mayor David Trewavas Photo: RNZ / Dom Thomas
Two central North Island mayors are pleading with the government to bail out a pulpmill which is planning to close due to skyrocketing electricity prices.
Winstone Pulp falls within Ruapehu Mayor Weston Kirton's jurisdiction.
He wants "a lifeline" similar to what had been seen in other cases, he said pointing to Tiwai Point.
"Some sort of subsidy, a lifeline just over this period. There's obviously lake levels and low production but just over the next few months there is going to have to be some sort of rebate to actually accommodate this situation."
Kirton said there was no way the company could have predicted power prices rising as quickly and as high as they had.
Neighbouring Taupō Mayor David Trewavas said he felt for Kirton, and the closure would also effect businesses in his region.
"I think we're looking for a short term fix here to get these companies, keep them going, because once they go that's it, it's all over."
The company is considering pulling out of New Zealand due to soaring wholesale energy prices, with its final decision to be announced on 9 September. The closure would cost 230 jobs.
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 put together a proposal.
"We basically pleaded for help," Taupō mayor Trewavas said.
"I'm not too sure what the answer is... [But] we've got to do something."
He said they had just over two weeks before Winstone Pulp finalised its decision.
"They might talk about mothballing it, but once a sawmill is closed it takes too long [and] is too expensive to reopen," he said.
"So once they make the decision, it's all over."
Trewavas said Winstone Pulp was critical to the region's GDP, and losing it could be disastrous.
"They're paying 700 percent more for power this year than last year," he said.
"There must be some sort of a formula where if a company is contributing so much to the community... You must be able to come up with some sort of structure to help them out."
He said the government had committed to considering whatever short-term solution the councils put forward.
Winstone Pulp Chief Executive Mike Ryan said the company backed the mayors efforts.
He said it would continue its efforts to "resolve the situation it faces".
