The closure of Whakatāne Mill has been confirmed, with over 150 skilled operational workers being made redundant after 85 years of operations.
FIRST Union and E tū say that while vital the impact on the local community will be significant, there is still a chance for a new buyer to repurpose the existing plant and secure crucial infrastructure in New Zealand’s forestry supply chain.
“There are many options for refitting the existing assets to continue manufacturing pulp and paper products,” said Jared Abbott, FIRST Union Secretary for Transport, Logistics and Finance.
“We are inviting potential buyers to ask for our assistance to get the support needed to make the most of the existing skills and infrastructure available.”
“There are opportunities in the industry and there is an important role for Government to play in securing the wood supply chain and increasing our manufacturing capacity.”
E tū spokesperson Raymond Wheeler says the announcement of the closure is “devastating” for local industry, including businesses such as scaffolding and engineering.
“We’ve just had the economic impact of the Whakaari (White Island) eruption and COVID-19 on Whakatāne’s tourism industry to contend with, and now the region has been dealt this blow. It’s an enormous hit to the regions and to the eastern Bay of Plenty.”
Raymond says job opportunities in the area are limited, and emphasises the urgency around the Government’s work on an Industry Transformation Plan (ITP) for the forestry and wood processing sector, if local manufacturing is to survive.
Here’s an idea.
As I understand it the Whakatane Mill is closing, not because it is making a loss, but because it is not making its owners a big enough profit to provide large dividends to its shareholders.
The unemployed workers are unlikely to find jobs locally so either they must move or receive unemployment benefits.
Here is a revolutionary idea. The government does not pay the company sweeteners to keep the mill running( wage subsidies, tax breaks etc). The management obviously does not know how to run the thing so get rid of the bastards.
The government acquires the mill. I repeat again this mill is not running at a loss. It is just not making enough profit to satisfy its management and shareholders. Therefore its operation will cover operational cost and make a small profit. My personal preference is that the state acquire it without payment to anyone but , if necessary, a low price for its acquisition.
The mill operates, employs local people and contributes to both national and local economy. A small profit can be increased to a large one through efficient management and as the enterprise is state owned this profit is state revenue that reduces individual taxation.
I am an old man and have been self-employed, a state employee and an employee of private concerns. Experience teaches me the idea of efficient private ownership versus incompetent state management is total bullshit.
It is purely used as an excuse to justify the sale of state assets to Joe Hunts like Michael Fay who then proceed to use the excessive profits for a Rich Man’s version of Rubber Duckies.
Long live Socialism! Death to Capitalism!
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