The announcement that Winstone Pulp International (WPI) intends to cease operations indefinitely due to crippling electricity prices is a devastating blow to the Ruapehu District and the wider central North Island economy. Ruapehu Mayor Weston Kirton warns that this closure is only the 'tip of the iceberg,' with other New Zealand export manufacturers facing similar pressures from unsustainable energy costs.

"The closure of WPI underscores the urgent need for government intervention. Fixing the New Zealand electricity market must be the government's number one priority," stated Mayor Kirton. "We are at a critical juncture. The timeline for a potential solution and whether it will make New Zealand energy costs internationally competitive are the key issues. If we fail to act now, the repercussions will be felt across all sectors of our economy."

Mayor Kirton also expressed deep concern for the Ruapehu local communities directly impacted by the closure, recognizing the severe economic and social consequences they will face.

He called for immediate government action to provide a lifeline to WPI to keep the lights on, while also addressing the long-term systemic and policy failures that have led to this crisis. "With Electricity Authority data finding that the big six energy companies have enjoyed margins of half a billion dollars over a recent six-week period no one can say the market isn't broken."

"If we cannot bring energy costs in New Zealand down to a level where our manufacturers, service sector, and exporters can compete internationally, all our growth and employment aspirations are doomed before they even start," warned Mayor Kirton. "It is time for all players with influence in the electricity market—government, regulators, industry leaders, and energy companies—to work together, pulling on all available levers, to resolve the current electricity supply and pricing issues. The time for patch protection and excuses is over. NZ Inc. needs this fixed, and we need it fixed now."

“Power plants like Piriaka were established to supply cheap, reliable power to local communities in support of growth and opening-up the New Zealand economy. It is worth reflecting we now find ourselves in a situation where a shortage of power supply has driven electricity costs to levels that threaten the future of major industries, including those right here in Ruapehu.”

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