Pulp friction: Mana whenua to be most affected if Winstone Pulp closes - Ngāti Rangi

Trouble at Mill: Winstone Pulp International is set to close two of its plants with the loss of 230 jobs.

By RNZ

A Ruapehu iwi is calling on the Government to intervene in the proposed closure of forest products company Winstone Pulp International.

After pausing work at Karioi Pulpmill and Tangiwai Sawmill earlier this month, it is now planning to shut down its entire operation due to high wholesale energy prices.

Ngāti Rangi chairman Whetu Moataane is urging Prime Minister Christopher Luxon to develop a local solution and prevent risks to the Ruapehu community.

There are more than 230 employees at WPI – the district’s largest permanent employer.

Jobs in the area are also scarce, with a lot of the work in the region seasonal, including working on farms, the ski fields and for growers.

Moataane said mana whenua in the area would be the most impacted by the proposed closure.

Karioi pulpmill at Tangiwai.

“Approximately 70% of the employees are Māori; many of our Ngāti Rangi whānau have had a generational relationship with the mill,” Moataane said.

“The Government has said that supporting regional productivity, prosperity and resilience is fundamental to their growth programme. We absolutely agree with this focus and want to see these words turn into action.”

It was time to focus on supporting the regional economy by coming up with meaningful ideas while WPI went through its consultation period with its staff, he said.

“Such approaches could include innovation in key forest products; biofuel opportunities; improved energy options; ventures with SCION research; riparian planting; analysis of redundant infrastructure; environmental restoration projects.”

No one in the community wanted to see it shut and the iwi wanted to work with both WPI, central and local government, and Māori in the area to think of solutions moving forward, Moataane said.

“It matters to Ngāti Rangi; it matters to our community that we work collectively to lift productivity and economic growth; to build resilience alongside of our deep, enduring concern for environmental health and whānau wellbeing.”

Government response so far

The Prime Minister’s Office has been approached for comment.

Associate Energy Minister Shane Jones.

Associate Energy Minister Shane Jones told Morning Report on Wednesday when asked if the Government would intervene, that “the acid” was on the energy companies which had the option of doing a deal like one supplier had with the Rio Tinto aluminium smelter.

He said there was currently no proposal in front of him to pay any subsidy to the likes of Winstone and was certain others would be forced out of business due to high energy prices.

But Moataane emphasised that was the point of his letter to the Government, the hope of collaborating ideas.

“Is that what the Government wants? A region that’s going to be struggling and challenging to live in? I know that governments [have] been very loud and clear about it in their campaigning that they want to improve and create and more jobs for New Zealanders.

“Here’s a prime example, here’s an issue right in front of us. Come here, Let’s have the conversation and let’s come up with solutions.”