Calls were made yesterday for Southland to develop a comprehensive regional development strategy, following the decision to keep the Tiwai Point aluminium smelter open.
New Zealand Aluminium Smelters (NZAS) yesterday announced it had reached agreement with electricity generator Meridian, allowing the smelter to continue operating for the immediate future.
Labour leader Andrew Little said the certainty the deal brought over the coming months and year would be welcomed in Southland, which would be feeling the effects of plummeting dairy prices.
The lower New Zealand dollar had improved the smelter's financial position on the international market and a deal had been struck, bringing relief to the region.
''This whole mess was created by the Government's inept negotiations in 2013. The mistake was committing $30million in corporate welfare to bolster Meridian Energy so it could be sold off as part of the asset sales programme.''
It seemed NZAS had now won more competitive rates from Meridian, Mr Little said.
What the prolonged and agonising negotiations had highlighted was the need for a strong regional development strategy so major provincial cities were not relying on just one or two commodities, Mr Little said.
The Green Party called on the Government to work with the Southland community to develop an economic plan for a post-Tiwai Point world.
New Zealand First leader Winston Peters believes a management/worker takeover of the smelter is the only sensible and long-term solution.
The smelter, which Australian mining giant Rio Tinto had on the market, had an uncertain future, was a recipient of huge state support and, if it could not make a go of it, then management and workers certainly could, he said.
''The difference will be that a New Zealand management and worker operation will justify the huge hydro energy subsidies this operation is getting now. It is one of the cleanest smelters on the planet because it runs on hydro electricity.
''This is exactly the sort of investment responsible governments should be encouraging,'' he said.
