Normally, I don't have a lot for time for Tiwai. And that’s largely because of how the owners have behaved in the past: threatening to leave, going cap in hand to the government, getting saved, then a few years later threatening to leave again... getting some assistance, then a few years later threatening to leave again.
So, I'm always tempted to be hard on them. But this time... I'm actually relieved that those three electricity companies - Meridian, Contact and Mercury - have come to the party to keep Tiwai point going. Simply because we can’t afford to lose such a big manufacturer.It's not a particularly sexy subject, so it doesn’t get talked about nearly enough.
But we have lost a lot of manufacturers out this country... to the point that we should actually be quite worried about it. Marsden Point has been closed. There have been threats that Glenbrook Steel Mill might close (if it can’t get itself together). A 30-year-old Gisborne Wood Mill closed just before Christmas, a 40-year-old Kawerau Paper Mill closed too. James Hardie shut its NZ manufacturing. Fonterra closed a couple of Waikato plants last month.
Manufacturing has been contracting since March last year. Back in 1992 the goods producing part of our economy was 35%. Now it’s down to 20% - that's money lost.
Now, I don’t know what kind of sweet deal those electricity companies offered Tiwai to make them sign on for twenty years, because that’s a big commitment. And I don't know how much of Tiwai committing for that long is because the parent company Rio Tinto is trying very hard to rescue its corporate reputation by not being bullies and bad guys anymore.
But whatever the case is... It almost doesn’t matter. I'm just pleased we’ve got them sticking around.
Heather du Plessis-Allan is a journalist and commentator who hosts Newstalk ZB's Drive show HERE - where this article was sourced.
4 comments:
It is great to see, a continuation of our using our resources to help others make money. The aluminium, once made by our subsidised power, is sent overseas to be processed.
Much like we send our logs overseas to be processed. We make milk powder and send it overseas to be processed.
So why would we change such a successful business plan by using the electricity to create any jobs and manufacturing in NZ. Get used and abused by overseas companies and countries and just smile and wave.
CXH your Tiwai comments are Not entirely correct . The original Manapouri power was constructed and funded for Tiwai by the then Tiwai owners , NOT NZ . We import their bauxite and manufacture into ialuminium ingots and export a finished product for other uses . Yes, NZ constructed the powerlines from Manapouri to Tiwai and Trustpower have financially raped Tiwai since it was paid off in the first years.
My mistake in Basil Walker 10.38 am TRANSPOWER,have financially raped Tiwai. Not Trustpower . (my apologies )
Unfortunately Basil is wrong on multiple accounts. Consolidated Zinc could not ultimately afford to build it and it was built and paid for taxpayers. Equally it is now owned by Meridian not Trust Power.
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