Government must intervene to save smelter

October 6, 2012
Media Release

Government must intervene to save smelter

The union for workers at Tiwai Point aluminium smelter is calling on the Government to drop its hands-off approach and take action to save the smelter.

The call comes amid speculation the smelter may be forced to close due to unaffordable power prices and the overvalued New Zealand dollar.

Well-placed sources have reported Meridian Energy has walked away from talks with Rio Tinto over the price of electricity used to power the smelter. Meanwhile, local management have stated that the unrealistic exchange rate is making the smelter uncompetitive.

EPMU Director of Organising Alan Clarence says the Tiwai smelter is too important for the Government to allow it to fail.

“Workers at Tiwai Point are already on tenterhooks dealing with restructures and redundancies, and we now hear from credible sources that talks between Meridian Energy and Rio Tinto have broken down.

“It’s not good enough for businessmen to be shuffling papers in back rooms and storming out on each other like children while workers and their families wait to hear about their futures.

“It’s time for the Government to step in, sort out a fair deal between Meridian and Rio Tinto that allows the smelter to remain open, and finally act on the overvalued New Zealand dollar.

“This situation typifies the Government’s hands-off approach, which is contributing to a jobs crisis in this country and the devastation of communities from Greymouth to Kawerau.

“There is an emerging consensus among unions, businesses, economists and political parties that the hands-off approach of the last 30 years is broken and that we need our Government to take a more active role in the economy.

“It’s time for the Government to get serious about jobs, and it needs to start at Tiwai Point.”

The Tiwai Point aluminium smelter is majority owned by Rio Tinto and employs around 900 staff and contractors.

ENDS

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