Source: ACT Party
“Two stories from today show how the energy shortage is biting regional economies hard,” says ACT Energy spokesman Simon Court.
“Together the news paints a picture of a poorer, colder, and darker future for New Zealand unless we take urgent steps to restore confidence for energy companies to explore and invest in new supply.
“Winstone Pulp has proposed responding to unsustainable energy prices by shutting mills and cutting hundreds of jobs, an outcome that would devastate livelihoods in the Ruapehu District. They’re currently paying more than five times as much for energy as their overseas competitors, and it’s not feasible to pass these costs to their customers.
“Down south, Tiwai Point has confirmed yet another cut in production, in a deal to give energy back to the gentailers to service the rest of New Zealand. It mirrors a similar deal Methanex struck to shut down production until October and sell its gas to power companies. In a first world country, we shouldn’t have to shut down productive enterprises just to keep the lights on at home, but that’s what we’re seeing.
“We can’t go on like this. We’re in an energy crisis, and if it becomes an annual event we’ll see regional economies hollowed out from the inside as factories and smelters and mills become unviable. On cold mornings we’re coming perilously close to blackouts.
“We can’t rely on hydro alone. Usually in an energy crunch we could dip into stocks of natural gas, but the previous Government crashed that sector’s confidence to explore and invest in new supply, hence the desperate deals like the one we’ve seen with Methanex. The new Government reversed the oil and gas ban, but the sector still looks at New Zealand in fear that a future government could shut them down.
“I’ve written to Party Leaders from across Parliament calling for cross-party action. If the likes of Chris Hipkins and Chloe Swarbrick can commit to allowing natural gas companies to operate, we’ll see more investment and ultimately more supply brought online. ACT awaits their response.”
