Packaging New Zealand is welcoming news that the Whakatane Mill will remain open, saying the effects of its closure would have been disastrous.

The Whakatane Mill, which produces paper and packaging products, was slated for closure meaning the loss of more than 200 jobs to the local economy.

Packaging New Zealand President Harry Burkhardt says it would also have meant cardboard needed to be imported for some types of domestic and export packaging.

'As a proud manufacturing nation, that fact would have been something for us to be ashamed of, so we're breathing a huge sigh of relief.”

Harry says New Zealand needs to have a more holistic conversation about the packaging, resource recovery and waste sectors.

'Regulation like the recently expanded Waste Levy is not only short-sighted, but it will see more New Zealand businesses struggling to remain commercially viable.

'Packaging waste is about 350,000 tonnes per year, out of a total 15.5 million tonnes – that's roughly two per cent – but for too long successive governments have dealt with the sector only as a producer of waste.

'The packaging sector is vital to the economic and social wellbeing of our country and it not only enables our biggest export markets, it also employs more than 50,000 New Zealanders and generates significant revenue that accounts for about two per cent of our GDP.

'Packaging New Zealand wants to work alongside government to encourage regulation that fosters the circular economy and also sees the development of a collective Packaging Strategy rather than just a Waste Strategy,” he says.

'We want to see a plan that catalyses new investment into recycling infrastructure, and investigates and encourages viable waste streams so that we can explore options like waste-to-energy or making new and innovative export products.

'The Whakatane Mill has received a stay of execution but if we don't change our approach to packaging then it's only a matter of time before other key New Zealand businesses are lost and we have to look offshore for products we should be proudly manufacturing here,” says Harry.