11:09 am today

Mayors approach PM, Jones over saving threatened mills

11:09 am today
Sawing boards from logs with circular sawmill.

Photo: 123RF

Correction: An earlier version of this story reported mayors had met with the government. It has been amended to clarify there was no formal meeting.

Several mayors and local iwi are hoping to find a way to keep mills threatened with closure in operation.

Soaring electricity prices means Tangiwai Sawmill and Karioi Pulpmill face being shuttered.

The mayors from Ruapehu, Kawerau and Taupō said they were "cautiously optimistic" after approaching Prime Minister Christopher Luxon and Regional Development Minister Shane Jones at a conference this week.

The mayors all expressed concerns for the central North Island economy and their communities following the proposed closure announcement by Winstone Pulp International.

They warned the impending shutdown is only the tip of the iceberg unless urgent solutions are found to help with the unsustainable energy costs.

After being approached by the mayors at this week's Local Government conference, Jones invited them to put together a proposal to keep the plants operating.

Ruapehu mayor Weston Kirton said the government showed it was committed by inviting them to collaborate with WPI and create a proposal showing how it can keep the mill running.

"There is no doubt that the prime minister and minister Jones are acutely aware of what is at stake. They share our concerns for the economy and our communities, and want to find a workable solution," Kirton said