Mothballing of Ngawha plan alarming

A proposal for a major Northland wood processing plant, potentially employing hundreds at Ngawha, appears to have been killed off by a self-serving, dysfunctional electricity industry, says New Zealand First Leader and Northland MP Rt Hon Winston Peters.

'The decision of the project partners to back away from the Ngawha proposal is alarming.

'The fear of the Electricity Authority's new pricing regime, which is likely to significantly raise power prices in Northland, is cited as a key concern.

'New Zealand is truly in dire straits if a proposal, which has potential to boost the Northland economy and create jobs, is stymied by an authority that is supposed to act in ‘the long-term benefit of consumers'.

'The truth is, the Electricity Authority does not serve New Zealanders at all.

'Northland desperately needs new economic projects. New Zealand First has long spoken out of the need to add value in the wood industry, which will help Northland prosper again.

'What is confusing about the Ngawha proposal, promoted by the Ministry of Primary Industries, Northland Inc and NZ Trade and Enterprise, is that it was a core announcement in Minister of Economic Development Steven Joyce's much heralded economic plan for Northland.

'It appears Mr Joyce's prophecy about plans has been correct. He said at the time, ‘Many have been written over the years, and they often end up gathering dust'.”

SOURCE: Office of Winston Peters

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