April 2, 2013
Media Release

Government must remain involved in Tiwai

The union for workers at Tiwai Point says the Government needs to give Southlanders an assurance it will continue to fight for the smelter’s future.

“News that Rio Tinto has walked away from talks with the Government is deeply distressing for Tiwai workers and the Southland community,” says EPMU assistant national secretary Ged O’Connell.

“There are more than 3000 families relying on Rio Tinto and the Government to come to a solution that protects their jobs and provides a future for Southland.

“We know Rio Tinto can be a ruthless negotiator, but it’s important the Government remains involved in the smelter’s negotiations with Meridian.

“If the Government had got involved last year when we warned them the smelter was at risk then there could have been a deal by now, but they’ve sat on their hands for nine months and now Rio Tinto has them over a barrel because of their asset sales programme.

“The Government now needs to look at other levers it can use to make the smelter viable, including taking immediate action to lower the overvalued New Zealand dollar, which is a drag on the competitiveness of Tiwai and every other exporter in the country.”

Mr O’Connell says Tiwai workers and the Southland community need an assurance that the Government will take responsibility for the smelter’s future.

“The fate of Southland’s economy cannot be left to the short-term commercial interests of Meridian Energy. Whether the Government likes it or not, these negotiations are political and that means the buck stops with the Prime Minister.”

The EPMU has been calling for the Government to intervene in the talks since September last year when it became clear the stalled negotiations were putting the smelter’s future at risk.

In addition, more than 3000 Southlanders have written to the Minister for State Owned Enterprises, Tony Ryall, urging him to ‘Save Our Smelter’ and protect local jobs.

ENDS

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