Rotorua Needs Intervention Economics For Tachikawa Workers

Independent MP Brendan Horan says the Government has to get involved in the economy with appropriate support for businesses,  to ensure a strong economy.

That means taking control of an operation like the Tachikawa sawmill in Rotorua which has failed under private control.

“Doing nothing,  as Bill English wants to do,  is not an option.  It flies in the face of modern day economics.  Successful economies today are countries that use sensible economic intervention such as China and Norway.

“Norway is a world leader by being involved in the country’s major industries and ensuring prudent returns. 

“For example, Norway’s Forest Trust Fund is a means for financing measures to achieve sustainable management of forests.  Norway also provides US$4 billion in support for oil and gas activities including ‘special treatment’ of the Snohvit natural gas field in the north of the country.  Their Government supports the fledgling electric car sector with tax breaks,  free road tolls,  and free parking.  And research and development is encouraged with a tax credit scheme available to all businesses.  For the media,  Norway encourages a ‘heterogenous newspaper landscape with a focus on local competition.’

“In Rotorua,  Tachikawa is an ideal opportunity for the John Key Government to demonstrate a commitment to a brighter future.  Given the correct policy settings by Government,  a buy-New Zealand ethos can get the economy buzzing.

“Tachikawa is not just about 120 permanent staff at the sawmill.  It is about other businesses and contractors affected.  It is about the families of the workers.  It is about what happens to them economically,  socially and emotionally.  It is about the long-term ramifications for the Bay of Plenty community and ultimately New Zealand.

How much does it cost New Zealand if all or even half of these people end up on social welfare? When you add it up,  it is sound financial policy for Government to step in and ensure everyone stays in a job,  keeping the local economy vibrant. 

“This is not reinventing the wheel  -  successful countries are already doing it.. We can too,”  said Brendan Horan.

ENDS

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