Winston Peters calls out coalition partner's Tiwai smelter 'lies'

Friday, 24 July 2020

NZ First Leader Winston Peters says talk that Tiwai has been subsidised is a 'lie'.

Deputy Prime Minister Winston Peters says his coalition partners Labour, as well as previous Governments, have told lies in regard to the aluminium smelter at Tiwai Point being subsidised.

The New Zealand First leader visited Invercargill on Friday where he talked to smelter workers in the morning before holding a public meeting in the afternoon.

Peters is at odds with coalition partners Labour as to what should be done on the back Rio Tinto’s announcement it will close the smelter next year.

Prime Minister, and Labour party leader, Jacinda Ardern wants the focus to be on creating new jobs for Southland to fill the void the smelter will leave.

NZ First leader Winston Peters promises a Tiwai Point Aluminium Smelter deal if elected.

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However, Peters wants the Government to step in to ensure the smelter remained open long-term, although ruled out a Government buy-out.

Peters told those at the public meeting that successive Governments had created a ‘’myth’’ that the smelter’s electricity had been subsidised.

“That’s been a lie since 1977, a year before I entered Parliament, and is just as big a lie today.’’

In the first agreement the smelter paid the actual cost of supply plus a 10 percent margin, Peters said.

New Zealand First leader and Deputy Prime Minister Winston Peters held a âSave Tiwaiâ public meeting at the Invercargill Workingmen's club on Friday.

However, he said the original agreement was breached and the 10 percent margin had dramatically increased to the great benefit of the Government.

“None of these people who have come [to Southland] recently from Wellington to talk to you about your future demise, have ever shown you this legislation.’’

Peters went as far as quoting Adolf Hitler when re-enforcing his take that the public had been delivered lies.

'Remember the heinous Hitler comment 'if you're going to tell a lie, tell a big one – the people are more likely to believe it,' he said.

The smelter and its employees had struggled with ‘’this deceit’’ as had the workers, he said.

He said the smelter used two percent of New Zealand’s transmission but paid for eight percent; which equated to $50m a year.

That too was unfair, Peters said.

Stuff has put questions to the Prime Minister’s office around Peters’ comments that the Government had lied to the public in relation to the smelter.

The PM’s office did not provide a response to Peters’ subsidy claims on Friday.

Last week, during the visit to Invercargill, Energy Minister Megan Woods ruled out ‘’subsidies’’ to keep Rio Tinto open.

At Friday’s meeting, Peters announced that if New Zealand First continued in Government after the election they would commit to a 20-year smelter agreement with a 10-year review, with a fair electricity cost based on the cost of supply and a respectable margin.

“And what’s a respectable margin? Something like the original agreement of 10 percent when this great enterprise first started,’’ he said.

When pressed after the meeting on if Rio Tinto actually had any interest in a 20-year deal, he responded by suggesting there would be other interested consortiums to take over the smelter.

Southland Chamber of Commerce president Neil McAra.

It is understood that Ardern and other Ministers were set to announce a $100m ‘Just Transition’ package for Southland during last week’s visit to Invercargill.

However, it is also understood NZ First put a stop to it.

Peters was asked after Friday’s meeting why he was not keen on the $100m package for Southland.

“Are you saying you are prepared to take $100m as some sort fair compensation for the destructive damage that central Government has bestowed on Tiwai Point? Give me a break.’’

“Let them have Tiwai Point continue without having them ripped off, that’s a real policy.’’

After the meeting, Southland Chamber of Commerce chairperson Neil McAra said he was pleased that Peters had delivered some ‘’honest truth’’ about the story behind the smelter.

However, McAra said the concern for Southland was that Peters 20-year commitment was a post-election decision and it did not give Southland confidence now to move forward.

“We are still looking forward to findings solution pre-election,’’ McAra said.