Japanese Ambassador Makoto Osawa. Photo / Supplied
Japanese Ambassador Makoto Osawa. Photo / Supplied
New Zealand needs to give foreign investors predictability and certainty over electricity prices, according to Japan’s new Ambassador to New Zealand, Makoto Osawa.
Osawa used his introductory courtesy call with Associate Energy Minister Shane Jones and Forestry Minister Todd McClay in August to introduce them to the leadersof large Japanese investors in New Zealand, representing $2.7 billion worth of investment, who had been affected by the recent price fluctuations in New Zealand. Prices spiked last month but have since plummeted.
One of the firms, Oji Fibre Solutions, today announced high electricity costs had forced it to close its Penrose recycling mill, at a cost of 75 jobs. The others included Pan Pac, Juken, Nelson Pine, and Daiken.
Osawa told the Herald the companies had a “common position” they took to the Government to say “the sudden high price of electricity is hurting”.
Osawa said he used the first half of the meeting to make a courtesy call on the ministers, and yielded the floor to people from the firms for the second part of the meeting.
“What I asked at that time is simply to urge the discussion within the forestry companies and the Government,” Osawa said.
Japan is New Zealand’s fourth-largest foreign investor. The stock of Japanese investment in New Zealand was worth $16.2b in 2023 up from $10.6b in 2018.
High energy prices have caused industrial closures. Photo / Supplied
He said Japan had been a major investor in New Zealand for 50 years, a period that had seen significant changes in industrial electricity prices.
Osawa saidit was not his place to comment on the internal politics of New Zealand, but it was important the Government heard the perspective of large investors here.
“Predictability is very important for Japanese investment and I hope the New Zealand Government thinks about it very carefully and makes the right decision,” Osawa said.
“Even though that is an area of internal policy, I would like to add something that can be seen as the perspective of foreign investment. That perspective is predictability,” he said.
Osawa told the Herald after Oji’s announcement he was not aware of any other Japanese firms deciding to shut down production.
He said electricity prices had been “fluctuating and becoming higher and higher” before crashing, which had been difficult for investors.
Despite the gloomy outlook for manufacturing, Osawa said the future for Japanese investment was bright. He said investors were interested in renewable energy, green hydrogen, and New Zealand’s emerging gaming and rocketry sectors.
“My very important mission is to strengthen the economic relationship between New Zealand and Japan,” Osawa said.
Thomas Coughlan is Deputy Political Editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018.
