Tiwai aluminium smelter becoming 'political football' - News Summed Up

Tiwai aluminium smelter becoming 'political football'


The future of the Tiwai Point aluminium smelter is becoming a ‘’political football’’ which is unfair on the 1000 workers at the plant, the Southland Chamber of Commerce says.​Rio Tinto announced this month it would start planning for the closure of the smelter in August, 2021, saying the business was no longer viable given high energy costs and a challenging outlook for the aluminium industry.​Prime Minister and Labour Party leader Jacinda Ardern wants a focus put on creating new jobs for Southland to fill the void the smelter will leave.​READ MORE:* Winston Peters calls out coalition partner's Tiwai smelter 'lies'* Meridian and Rio Tinto still talking - but what does it mean? * PM: Government needs to support job creation and transition in SouthlandBut deputy Prime Minister and New Zealand First leader Winston Peters wants the Government to step in to ensure the smelter remains open for the long term, though when in Invercargill on Friday he stopped short of saying it would be a bottom line in any future coalition agreement.​The differing views of the coalition partners were highlighted last week when Radio New Zealand reported the Government had planned to announce a $100m recovery package for Southland, in the wake of the likely closure of the smelter, but the plan was scuppered by New Zealand First at the eleventh hour.​Ardern’s office did not respond when asked if this was correct, but on Friday Peters dismissed the $100m package as a pittance in comparison to the benefits for Southland of having the smelter stay open.​Southland Chamber of Commerce chief executive Sheree Carey said the smelter workers needed certainty about their futures.​‘’We would welcome a decision before the election because I feel this has now become a political game and no-one’s willing to actually make a decision or take us seriously until after the election.’’​With Peters not guaranteeing the smelter would be a bottom line in coalition talks and with Labour ‘’stopped’’ from giving money to Southland, the smelter had become a political football, she said.​Southland leaders were in talks with the Government to try and keep the smelter open for at least another five years, instead of 14 months, so other industries could get bedded in before the smelter job losses.​Carey said if the smelter was to close in 14 months the region would need ‘’a hell of a lot more than $100m’’, given the smelter pumped $450m into the economy each year and its workers received $90m in wages.​Great South chief executive Graham Budd said Southland's leaders knew nothing of the $100m recovery package until it was aired in the media, and the money had never been on the table.​‘’If it was it would be a welcome investment to help us develop future opportunities more quickly than we otherwise would have been able to.​‘’But at the same time we are still absolutely focused on trying to ensure the smelter stays open for at the very least another five years.’’​Southland leaders were asking for the government’s urgent intervention, particularly in regards to the high transmission costs paid ​by the smelter, he said. A Government spokesperson said various ministers were working with Southland leaders on a number of initiatives to ensure those working in the region were supported now and into the future.​‘’We will provide updates as those plans are finalised.’’​


Source: Stuff July 26, 2020 05:03 UTC



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