New Zealand First open to government stakes in the aluminium smelter

In a speech held at the Invercargill Workingmen’s Club on Sunday, the leader of New Zealand First, Winston Peters, said that he was open to the government holding stakes in the Tiwai Point aluminium smelter.

He said that the future of the smelter is not yet certain but if a direct government investment in the smelter serves the national interest, New Zealand First will be open to that offer. If the Government’s involvement in the project retains the far reaching economic benefits for the region then the company will not object.

While the smelter owners and Meridian Energy signed a three year deal last year to secure a sustained flow of energy for the smelter to function, the government also invested $30 million to the only aluminium smelter in New Zealand to help seal the deal.

John Key, the Prime Minister said that the subsidy offered was a lot less than what Rio Tinto wanted, who is the majority holder in New Zealand Aluminium Smelters.

The smelter is said to add $525 million a year to Southland’s economy while using around 15% of national electricity.

Mr Peters also criticized Auckland saying that it had become separated from the rest of New Zealand. He also said that the Reserve Bank was running monetary policy to manage the urban area’s housing price bubbles while the rest of the country suffers.

Southland is the biggest exporter in New Zealand according to per capita calculations but its wealth is also exported he says. He states that New Zealand First’s long standing royalty policies will be a great boon for the regional communities and economies.

According to the royalty program, 25% of the royalties paid on the extraction of minerals and other materials will be placed in a special fund which will be used for the betterment of the region of extraction and its development.