A proposal by Carter Holt Harvey to close its Eves Valley sawmill is a "huge blow" to the local economy with the potential loss of 142 direct jobs.
Nelson Mayor Nick Smith said on Thursday morning that Carter Holt Harvey, which owned the plant, wanted to shut it to consolidate its resources at its Kawerau plant in Bay of Plenty.
"My immediate concern, shared by Tasman Mayor Tim King, is for the 142 Nelson and Tasman families who will be devastated by today’s announcement with many staff having worked at the mill for decades," Nick says.
He told RNZ that the plan was under consultation until 1 September, but following a meeting with the company's management he was not optimistic that anything could be changed.
A final decision is due on 4 September, he says.
The proposal is to wind down the plant over the next two months with full closure taking effect in November, Nick claims.
Regional Development Minister Shane Jones and South Island Minister James Meager were briefed on the matter by Nick, he said.
"They were obviously disappointed but also were supportive of ensuring government agencies like [Ministry of Social Development] are there and available to provide the support for the very significant number of workers and families that will be affected if this closure proceeds."
Nelson MP Rachel Boyack says the mill closure will hit the local area and flow on to the wider economy.
“We need more onshore wood processing to build homes and other infrastructure, not less,” she says.
“This will be a major blow to the community if it goes ahead," adds Labour MP and former West Caost Tasman MP, Damien O'Connor. "The Government’s halt on major construction projects is likely to factor in this decision, as demand for processed timber declines, resulting in thousands of job losses and Kiwis having to head overseas for better opportunities."
Nick said he had spoken to half-a-dozen workers.
"They are absolutely gutted. Some of them have just purchased homes and are now desperately worried about how they are going to meet those mortgage repayments."
"[CHH] advised me that Kawerau had the advantage over Nelson of a larger wood resource in Kaingaroa Forest and access to geothermal energy. I put to CHH whether there was anything local or central government could do to try to save local jobs. They re-emphasised the closure proposal was all about consolidation and not something councils or government could alter."
"The blow to the region would not just be the loss of direct jobs at the sawmill, but the flow-on effect for other local businesses that support the plant," Nick says.
"This is just the worst possible news making for the crappiest winter I can recall for our region in decades."
