22 Aug 2024

PM, mayors, local iwi meet to discuss saving threatened mills

5:48 pm on 22 August 2024
Sawing boards from logs with circular sawmill.

Photo: 123RF

The prime minister, mayors, and local iwi have met to try and hash out 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 discussions with Christopher Luxon and Regional Development Minister Shane Jones.

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.

The government has invited the mayors to collaborate with the mill 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

The government would consider a short-term solution the trio can put forward before they stablish a long-term fix to prevent, he said.