Another Industrial Giant Goes Into Strategic Review

Published: Sat 18 Jul 2020 04:22 PM
NZ Steel is now the third large industrial company, with high numbers of employed staff, to go into a strategic review, with one of the significant contributing factors being Government regulation, says Jonathan Young, National Energy & Resources spokesperson.
NZ Aluminium Smelter and Refining NZ are both under strategic review.
The Government’s ban on new oil and gas exploration permits does nothing to ensure we have a strong supply of competitively priced natural gas, and that tightness in the market is further driving up the cost of electricity, says Young.
The Government’s recent ETS reforms also put significant cost pressures on companies which produce essential commodities like steel. While this is the design of the reforms to place a higher price on carbon, if companies like NZ Steel close, their production will most likely be replaced by overseas companies with higher levels of emissions; and all we would’ve achieved is exporting thousands of jobs, as well as having to rely on overseas companies to now supply New Zealand’s needs.
Apart from increased emissions in production because most overseas steel mills rely on coal-fired generation for their electricity; shipping transport will see emissions, with the planet being worse off.
National asked the Government to delay the introduction of their ETS reforms for a further year, so our companies can get through the economic downturn created by the Covid-19 crisis. The Government refused our request and we now see another large employing company coming under strategic review because of the regulatory uncertainty this government has created.
With so much uncertainty in the world economy, we need a sensible pathway to a lower emissions economy, one that still keeps Kiwis in their jobs.

Next in New Zealand politics

PREFU Shows Economy Doing Better Than Forecast
By: New Zealand Government
PM Statement On Cabinet COVID-19 Alert Level Review
By: New Zealand Government
Greens Unveil $297m Fund To Support Sustainable Food And Farming
By: Green Party
National Releases Its Plan To Restore NZ’s Prosperity
By: New Zealand National Party
New Zealand First Party List
By: New Zealand First Party
Arriving Travellers In Isolation To Be Able To Vote By Telephone
By: Electoral Commission
National To Invest In Our Children’s Future
By: New Zealand National Party
Numerous Arrests Following Investigation Into Historical Offending At Auckland School
By: New Zealand Police
An Extra 100,000 New Zealanders To Lose Their Jobs Under Labour
By: New Zealand National Party
New Zealand First – ‘Experience Needed Now More Than Ever’
By: New Zealand First Party
CTU Take On Pre-election Economic And Fiscal Update
By: Council of Trade Unions
PREFU Reveals Higher Debt And Unemployment, Lower Growth
By: ACT New Zealand
New Zealand First ‘Agrees To Disagree’ On Alert Level 2 Decision
By: New Zealand First Party
Alert Level 2 Continuation A Slap In The Face To New Zealanders
By: ACT New Zealand
Now Isn’t The Time To Be Making Life Harder For Farmers
By: New Zealand National Party
View as: DESKTOP | MOBILE © Scoop Media