Source: BusinessNZ
BusinessNZ says urgent and coordinated action is needed to avoid what gas users describe as a ‘devastating’ disruption to New Zealand jobs, services and manufacturing.
Chief Executive Katherine Rich says New Zealand’s dwindling natural gas supply is an issue that must be taken seriously.
“The assumption that industry can quickly switch to electricity is incorrect. I recently met with food producers across the country, who say transition to electric on local networks lack the capacity to support their industrial needs.
“Businesses reliant on natural gas include those who brew beer, produce infant formula, process meat and vegetables – all processes that require industrial heat and a continuous, dependable supply.
“Without gas, some of these operations will either relocate overseas or shut their doors. That means job losses, reduced exports, and the erosion of our manufacturing capability.”
Rich says the scale and urgency of New Zealand’s gas production problem demands a bipartisan approach.
“This is not a problem that can be solved by one government term or one political party. Without bipartisan agreement on the role of gas in our energy mix and a clear long-term plan, businesses will continue to face uncertainty and investment will stall.
“We must act now. Every year we delay brings us closer to a wave of de-industrialisation – and the loss of skilled jobs, regional investment, and domestic production capacity. The cost of inaction will be far greater than the cost of getting this right.”
Notes to the editor:
A survey of 66 commercial gas users reveals:
- Almost half have already reduced operations, increased prices, or cut staff due to rising gas costs or unreliable supply.
- Prices have surged over 100% in the past five years, with a quarter of businesses paying $25 or more per gigajoule.
- Eighty percent have gas contracts expiring by 2027, leaving a narrow window to secure alternative energy solutions.
BusinessNZ and BEC are calling for:
- A joint industry-government plan for a managed reduction in industrial gas supply, including targeted support for industries able to transition and contingency planning where no viable alternative exists.
- Immediate action to free up supply, including responsible development of known reserves and streamlining consenting processes.
- Government funding and infrastructure planning to enable realistic transitions to alternative energy sources.
The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
