Ruapehu Mayor Weston Kirton welcomes the Prime Minister’s statement that we do not get wealthy in a small country by selling things to each other as government ministers, and the power companies’ majority owned by government, are working on a solution to save the Winstone Pulp International’s (WPI) mills under threat of closing due to high energy prices.

Prime Minister Chris Luxton is currently on an international trade mission to Malaysia and Korea, his ninth since coming into office, seeking to double New Zealand’s export trade over the next ten years.

Speaking to New Zealand media the Prime Minister said: "New Zealand needs to become much wealthier. We want to double our exports, attract investment, and build crucial infrastructure. That’s my job—to make people aware that we are open for business. We do not get wealthy in a small country by selling things to each other."

Mayor Kirton echoed the Prime Minister’s sentiments saying that selling things to each other includes key inputs like electricity, and he was hoping that government ministers, and power company bosses back here in New Zealand, decision on WPI reflects the Prime Minister's message.

“Whilst we welcome the Prime Minister working to attract Malaysian investment to New Zealand we must retain existing investors such as WPI, a major exporter owned by Malaysian interests, who is on the verge of closure due to local energy pricing, and this cannot be overlooked,” Mayor Kirton remarked. “It is hard to believe that potential Malaysian and other Southeast Asian investors are not aware of the situation with WPI when considering whether to invest in New Zealand.”

Kirton also highlighted that the current crisis is not limited to WPI. "New Zealand’s high energy prices are threatening the viability of other major mill operations and export manufacturers. Although this year’s spike in energy prices has brought things to a head, the call for urgent and meaningful action on the wholesale electricity market has been ongoing for years."

WPI has long warned about the dysfunction in New Zealand’s electricity market. In a 2022 submission to the Electricity Authority, WPI stated, "We aim to prudently hedge our demand, but this does not protect us from underlying price trends, and since 2019 our average forward price has doubled. This is harming our economic viability."

Mayor Kirton added, "As a country, we need to seriously reflect on our Prime Minister’s efforts to attract new international investment while the international investors and exporters we already have are considering shutting down due to uncompetitive local inputs like electricity. As the Prime Minister said, 'We have to get rich by selling more stuff, not by selling things like electricity to each other.' I couldn’t agree more."

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