There's belief a major Auckland pulp mill proposing closure could be the first of many.
Oji Fibre Solutions is consulting with its 75 Penrose staff, citing a three-year pattern of losses.
CEO Jon Ryder says dramatically rising energy costs are one of several issues plaguing the mill.
E tū Union negotiation specialist Joe Gallagher says the Government needs to step in and set up some regulations.
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Episode Transcript
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Speaker 1 (00:01):
That is Shawny.
Speaker 2 (00:02):
You can condon Condon down because you're so high, you
can condow.
Speaker 1 (00:15):
Hey, I'm going to run you through all of the
things that are going to be happening overnight in the Olympics.
But the two things that are happening the closest from
now I don't even know what the indust would like,
you know, The ones that are at most imminent. There
you go are the kayak sprints, which will feature Amy
Fisher and Lisa Carrington. Now these are just heats, but
still would love to see these ladies in action. And
(00:36):
that's going to kick off at seven thirty. Now Banksy
has done another one. So we were just talking yesterday
about Banksy doing any thing, and now Banksy's done another one.
Yesterday it was the goat that was perched precariously atop
of a strut on a building. Today he's he's done
the silhouettes of two ol elephants with their trunks stretched
out towards each other, and he's painted the elephants sort
of like emerging from boarded off windows. The windows had
(00:58):
been bordered already I think painted white, and he sort
of got them coming out of that. As a result
of not having a caption or any kind of obvious
meaning for them. Everybody started to try to interpret what
they mean. Some say it means the elephant in the room.
Others say it's symbol like the trunks reaching out towards
each other. Are this a symbol of healing and reconciliations?
The go going nuts over Banksy again twenty three away from.
Speaker 2 (01:20):
Seven, Heather duperic Ellen.
Speaker 1 (01:24):
Now the energy problem for New Zealand is getting worse.
Seventy five workers at a pulp mill in Penrose and
Auckland were told this morning that the mill will probably
have to shut down by mid December because of power prices.
And this comes after two mills near or Harkuny down
tools for two weeks for the same reason. They may
also shut and Methodex is running at half capacity because
of a gas shortage. Joe Gallagher is a negotiation specialist
(01:46):
at two, which is one of the unions involved in
the Penrose mill. He joins us, Now, Hey.
Speaker 2 (01:50):
Joe, good evening, how do you rate.
Speaker 1 (01:52):
The chances that this mill does actually shut down?
Speaker 2 (01:56):
Look, I mean, you know we all live in eternal
hope that my experience up to twenty two years in
this in this industry is that it's going to be
extremely challenging to keep this mill open given the pressure
from power prices this morning and the O were twelve hundred
dollars a megawatt and forty dollars at Catilla wat for gas.
So you know, I think it's going to be very
(02:17):
very hard to keep it open from facing those type
of price pressure pressures.
Speaker 1 (02:21):
What can the government do about this is everybody's looking
at the government to fix it.
Speaker 2 (02:24):
Can they well, look, you know, I think you know,
someone has to seriously have a look at how we
could regulate or put some regulation and support for heavy industry.
This is you know, we're seeing you know, closures, We're
seeing Weebstar and Masterton. We're seeing those two plants idling up.
New Zealand still has to work, you know, potentially idle
up every now and then because in some cases it
costs two hundred and thirty thousand dollars an hour to
(02:45):
run a kiln. So all of these plants are under pressure.
It's really you know, incumbent I think on the government
to come up with the strategies that that shows support
for manufacturing in New Zealand. They're supporting farmers, they're supporting landlords.
I think it's about time they reached out to heat
the industry and came up with a plan to keep
manufacturing local.
Speaker 1 (03:04):
So what are you suggesting, force the force the retailers,
the power retailers to cut prices, or give these guys
tax breaks or what.
Speaker 2 (03:11):
Well, I think you know, we need people need to
get together and look at all the solutions. I mean,
I don't think one there's going to be one solution
to this problem. But I mean, you know this, the
power and the gas price and the gas shortage, it's
all out of control. So I think we have to
look at waste to ensure that we have a strong
manufacturing based in New Zealand because a lot of these
mills and companies are critical to a rural New Zealand.
(03:33):
I'm down and towerpo at the moment and can leave
pulp and paper well, which is part of og that
that is critical to that community. Likewise, Glenbrook and the
steel mill is critical to that water community. So we've
got to be doing everything in our power all stakeholders
to work out a solution to support local manufacturing. That.
You know, it just doesn't make sense that ship it off.
Speaker 1 (03:52):
Sure, Yeah, I agree with you basically on the sentiment.
It's how to do it that's the problem made listen
on on Kenley we got told today that she's looking
at ken Leith Pulp and Paper Mill potentially going to
shut it down. Have you heard that?
Speaker 2 (04:04):
No, I haven't. I've been on site today and no
one's raised that with me. So I wouldn't like that
to you know, get out there. You know, I've been
down and I've done a tour of the site. I've
been talking to all the members. I've got other meetings tomorrow.
The note there's none of that sentiment at the moment
because that would be a huge that would be a
huge blow to this community. I mean, Tokara was formed
(04:25):
out I can lead needing workers to come down and
build the mill. So you know, at this stage there's
been none of that talk around.
Speaker 1 (04:31):
What about Pan Pac millon Hawks Bay, which is also
owned by OGI apparently has stopped producing, has it?
Speaker 2 (04:38):
Look, I can't comment on that. I hadn't. I hadn't
heard that today. I haven't heard that. I've got further
meetings next week with OG senior management. I mean, you know,
those questions that I can follow up on, I mean
all of these mills are facing those same pressures ruble industry.
Speaker 1 (04:53):
Yeah, Joe listen, thank you very much for talking us
through that. I do appreciate it. As Joe Gallagher Air
two's negotiation specialist.
Speaker 2 (04:59):
For more from Hither Duplessy Allen Drive, listen live to
news Talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio
That is Shawny.
Speaker 2 (00:02):
You can condon Condon down because you're so high, you
can condow.
Speaker 1 (00:15):
Hey, I'm going to run you through all of the
things that are going to be happening overnight in the Olympics.
But the two things that are happening the closest from
now I don't even know what the indust would like,
you know, The ones that are at most imminent. There
you go are the kayak sprints, which will feature Amy
Fisher and Lisa Carrington. Now these are just heats, but
still would love to see these ladies in action. And
(00:36):
that's going to kick off at seven thirty. Now Banksy
has done another one. So we were just talking yesterday
about Banksy doing any thing, and now Banksy's done another one.
Yesterday it was the goat that was perched precariously atop
of a strut on a building. Today he's he's done
the silhouettes of two ol elephants with their trunks stretched
out towards each other, and he's painted the elephants sort
of like emerging from boarded off windows. The windows had
(00:58):
been bordered already I think painted white, and he sort
of got them coming out of that. As a result
of not having a caption or any kind of obvious
meaning for them. Everybody started to try to interpret what
they mean. Some say it means the elephant in the room.
Others say it's symbol like the trunks reaching out towards
each other. Are this a symbol of healing and reconciliations?
The go going nuts over Banksy again twenty three away from.
Speaker 2 (01:20):
Seven, Heather duperic Ellen.
Speaker 1 (01:24):
Now the energy problem for New Zealand is getting worse.
Seventy five workers at a pulp mill in Penrose and
Auckland were told this morning that the mill will probably
have to shut down by mid December because of power prices.
And this comes after two mills near or Harkuny down
tools for two weeks for the same reason. They may
also shut and Methodex is running at half capacity because
of a gas shortage. Joe Gallagher is a negotiation specialist
(01:46):
at two, which is one of the unions involved in
the Penrose mill. He joins us, Now, Hey.
Speaker 2 (01:50):
Joe, good evening, how do you rate.
Speaker 1 (01:52):
The chances that this mill does actually shut down?
Speaker 2 (01:56):
Look, I mean, you know we all live in eternal
hope that my experience up to twenty two years in
this in this industry is that it's going to be
extremely challenging to keep this mill open given the pressure
from power prices this morning and the O were twelve hundred
dollars a megawatt and forty dollars at Catilla wat for gas.
So you know, I think it's going to be very
(02:17):
very hard to keep it open from facing those type
of price pressure pressures.
Speaker 1 (02:21):
What can the government do about this is everybody's looking
at the government to fix it.
Speaker 2 (02:24):
Can they well, look, you know, I think you know,
someone has to seriously have a look at how we
could regulate or put some regulation and support for heavy industry.
This is you know, we're seeing you know, closures, We're
seeing Weebstar and Masterton. We're seeing those two plants idling up.
New Zealand still has to work, you know, potentially idle
up every now and then because in some cases it
costs two hundred and thirty thousand dollars an hour to
(02:45):
run a kiln. So all of these plants are under pressure.
It's really you know, incumbent I think on the government
to come up with the strategies that that shows support
for manufacturing in New Zealand. They're supporting farmers, they're supporting landlords.
I think it's about time they reached out to heat
the industry and came up with a plan to keep
manufacturing local.
Speaker 1 (03:04):
So what are you suggesting, force the force the retailers,
the power retailers to cut prices, or give these guys
tax breaks or what.
Speaker 2 (03:11):
Well, I think you know, we need people need to
get together and look at all the solutions. I mean,
I don't think one there's going to be one solution
to this problem. But I mean, you know this, the
power and the gas price and the gas shortage, it's
all out of control. So I think we have to
look at waste to ensure that we have a strong
manufacturing based in New Zealand because a lot of these
mills and companies are critical to a rural New Zealand.
(03:33):
I'm down and towerpo at the moment and can leave
pulp and paper well, which is part of og that
that is critical to that community. Likewise, Glenbrook and the
steel mill is critical to that water community. So we've
got to be doing everything in our power all stakeholders
to work out a solution to support local manufacturing. That.
You know, it just doesn't make sense that ship it off.
Speaker 1 (03:52):
Sure, Yeah, I agree with you basically on the sentiment.
It's how to do it that's the problem made listen
on on Kenley we got told today that she's looking
at ken Leith Pulp and Paper Mill potentially going to
shut it down. Have you heard that?
Speaker 2 (04:04):
No, I haven't. I've been on site today and no
one's raised that with me. So I wouldn't like that
to you know, get out there. You know, I've been
down and I've done a tour of the site. I've
been talking to all the members. I've got other meetings tomorrow.
The note there's none of that sentiment at the moment
because that would be a huge that would be a
huge blow to this community. I mean, Tokara was formed
(04:25):
out I can lead needing workers to come down and
build the mill. So you know, at this stage there's
been none of that talk around.
Speaker 1 (04:31):
What about Pan Pac millon Hawks Bay, which is also
owned by OGI apparently has stopped producing, has it?
Speaker 2 (04:38):
Look, I can't comment on that. I hadn't. I hadn't
heard that today. I haven't heard that. I've got further
meetings next week with OG senior management. I mean, you know,
those questions that I can follow up on, I mean
all of these mills are facing those same pressures ruble industry.
Speaker 1 (04:53):
Yeah, Joe listen, thank you very much for talking us
through that. I do appreciate it. As Joe Gallagher Air
two's negotiation specialist.
Speaker 2 (04:59):
For more from Hither Duplessy Allen Drive, listen live to
news Talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio
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