A group of central North Island mayors say they are "cautiously optimistic" about keeping two mills from closing after meeting with the Prime Minister and the Regional Development Minister.
The Government has invited the mayors to work with Winstone Pulp International on possible solutions for keeping the Tangiwai Sawmill and Karioi Pulpmill from closing.
Ruapehu, Kawerau and Taupo district mayors say forestry mill operations in their districts are threatened by crippling energy prices.
On Tuesday, Winstone Pulp International announced it plans to shut its Tangiwai Sawmill and Karioi Pulpmill with the loss of 230 jobs.
Ruapehu mayor Weston Kirton, Kawerau mayor Faylene Tunui and Taupo mayor David Trewavas met with Prime Minister Chris Luxon and Regional Development Minister Shane Jones to discuss urgent action to prevent the mills and other export manufacturers from closing because of unsustainable electricity costs.
In Wellington for the Local Government NZ conference, the group told Luxon and Jones they were concerned for the central North Island economy and its communities.
The mayors warned that the Winstone Pulp International crisis was only the "tip of the iceberg" unless an urgent solution was found for other export manufacturers facing similar pressures.
Winstone Pulp International may close the Karioi Pulpmill and the Tangiwai Sawmill. (Source: Breakfast)
"There is no doubt that the Prime Minister and Minister Jones are acutely aware of what is at stake," Kirton said.
"They share our concerns for the economy and our communities, and want to find a workable solution."
Kirton said the Government had asked the three mayors to develop a proposal outlining what it would take to keep the mills operating.
"We are now working with urgency on developing a solution to put to them.
"The government has committed to considering whatever short-term solution we can put forward while they work to establish a long-term fix to prevent such a situation from arising again in the future," he said.
LDR is local body journalism co-funded by RNZ and NZ On Air
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