Winstone Pulp International has confirmed it will close with the loss of more than 200 permanent jobs. Photo: Supplied via LDR
A central North Island iwi says it is bitterly disappointed the opportunity to support regional development has been overlooked despite last-minute efforts to save 239 mill jobs.
Ngāti Rangi says the community has drawn together over the past 22 days to try to save the mills in the Ruapehu district but on Tuesday, Winstone Pulp International (WPI) announced it would close permanently.
The news comes after WPI shut down operations "indefinitely" early last month, citing unsustainable energy prices.
Ngāti Rangi spokesman Whetu Moataane said the iwi had fought to find a way to keep the mills going.
"We have hosted political leadership from National, Labour, Māori and Green Parties; our mayors have met directly with the Prime Minister; we have met with the unions; we have brain-stormed, we have written to all the key Ministers.
"We are all bitterly disappointed ... most of all that the wellbeing of our whānau will be so adversely impacted," Moataane said.
WPI chief executive Mike Ryan said on Tuesday the operations at Karioi and Tangiwai, between Ohakune and Waiouru, were not sustainable because of uncompetitive energy prices and low market prices for pulp and timber.
Helen Leahy, pouārahi/chief executive of Nga Waihua o Paerangi, the operational arm of Ngāti Rangi, said the future looks bleak for the workers and there would be a ripple effect across many sectors.
"Closure of the mill will have a widespread and devastating impact across our communities.
"While many of the workers are based in Ohakune (45 percent); there will also be a significant effect felt in Raetihi (25 percent); Otaihape (15 percent) and Waiouru (7 percent); not to overlook consequences also in Whanganui, Turangi and Taumarunui."
Leahy said the iwi would continue to offer support to affected whānau.
Ruapehu mayor Weston Kirton said the closure was a devastating blow and Ruapehu District Council was now focused on supporting the workers and the community.
"The wellbeing of our communities is the top priority for elected members, and we are committed to ensuring that there is support and assistance available to help them rebuild and recover."
Rangitīkei mayor Andy Watson said he was disappointed and concerned at "the lack of support" from central Government.
"These closures are the result of a systemic energy problem felt by industry providers across our country. If Government do not prioritise supporting businesses that sustain our local economy, our communities will continue to suffer."
Watson said the impact of the closures would be felt throughout Rangitīkei, particularly in its northern communities.
"Both the Karioi Pulpmill and Tangiwai Sawmill employed a significant number of workers from Taihape and a number of Rangitīkei companies also provided services for the mills.
"Moving forward, the wellbeing of our community is an absolute priority for myself and council," Watson said.
He said skilled industry workers make a vital and valuable contribution to the district.
"Council will continue to advocate at every level for the change needed to attract and retain these workers within the district."
Jude Sinai, a worker and FIRST Union delegate at the Karioi pulp mill, said workers were gutted and felt let down by the decision to close.
"We were hoping that the Government and wood sector would find a positive outcome and look for a way forward that's profitable," Sinai said.
"But they didn't come to the party and couldn't put together a long-term strategy to lock in power prices.
"Some of us have been here 20, 30, 40 years. We've spent so long at these sites, but the end was really sudden, with only two weeks to prepare physically, financially and emotionally."
Many of the workers are expected to leave the district to find new work.
"We're the coaches, we sit on the boards of trustees, we send our kids to the local schools. Without the support, it will open up a huge vacuum in the community," Sinai said.
LDR is local body journalism co-funded by RNZ and NZ On Air.