East Otago resilient despite Macraes job paring

Palmerston publican Tom Lawless remains upbeat about the future of the town, saying job losses at...
Palmerston publican Tom Lawless remains upbeat about the future of the town, saying job losses at Macraes gold mine are downscaling, not a closure. Photo by Craig Lewis.

The East Otago community might have been dealt a blow with the job losses at Macraes gold mine but the mood remains surprisingly upbeat.

Businesses and community leaders spoken to by the Otago Daily Times yesterday were largely unsure of the exact impact on the district, but expressed confidence in the area's future. Long-time East Otago resident and former Waitaki mayor Alex Familton said there would be a generalised impact over the area, as mine workers came from as far afield as Dunedin and Oamaru.

''It will be a widespread impact but it will also have a particular impact on Palmerston because there are those day-to-day incidental trading items,'' Mr Familton said.

Asked about the mine's impact on East Otago, he said it had given a confidence to many businesses that benefited from its presence.

While the economic activity would be sorely missed, the district was resilient. It was a community where support was ''huge'' and where people were willing to ''roll up their sleeves'' and become involved.

Palmerston had a full range of facilities and the service backdrop would remain.

''It won't be affected because the people will make sure it damn well does remain,'' he said.

The basis of the district - the agricultural sector - was still functioning and it would continue to keep the district ''buoyant and up and running''.

Waitaki Mayor Gary Kircher was concerned about whether government agencies were doing what they should to assist workers. He intended contacting Oceana Gold management, Work and Income and the union.

He was also concerned about effects on downstream businesses and said he would be prepared to convene a meeting in Palmerston to allow businesses to discuss the impact.

The Waitaki District Council could also look at developing other opportunities in the district, including further irrigation and the possible extension of cycling trails.

Waihemo Community Board chairman Geoff Foote said he would support Mr Kircher's suggestion for a meeting.

The news had come as a big shock to the district and it was going to have a big flow-on effect on all businesses.

''I honestly don't think the average person realises the effect it's going to have.''

He expected it would affect house prices, rental properties and school rolls.

On the positive side, the mine was still providing jobs for a large number of people.

Tom Lawless, who took over Waihemo Lodge six weeks ago, remained upbeat, saying it was a ''scale down, not a closure''.

''The mine will pick back up again. It might take a little bit longer ... but it will,'' he said.

The bar was busy on Tuesday night as workers flooded in for a beer after the meeting. The mood was ''pretty neutral'' and nobody appeared angry. Mine workers made up ''quite a large chunk'' of his business, he said.

One Palmerston resident, who declined to be named, said the community knew ''something was going to happen''. She used to work at the mine and many of her friends were miners. The decision would affect ''everyone in the town'', she said.

Waihemo Pharmacy manager Shelley Heatley said it was too early to say how the job losses would affect the business, but there would certainly be an impact.

Palmerston Pre-School and Nursery manager Kelly Cameron had not yet heard from any affected parents and she was unsure of the impact until she knew who was affected.

She was disappointed the mine's management waited until after Christmas to make the announcement.

Engineering, Printing and Manufacturing Union organiser Mike Kirwood said he got wind of changes at Macraes before Christmas, so was not surprised by the announcement.

However, he was concerned staff involved heard of the changes only this week.

Some Oceana Gold employees at Macraes have also complained they have not been kept in the loop about the layoffs, saying they only learnt of Tuesday's meetings on Tuesday morning.

One open pit employee, who declined to be named, said it was poor and believed Oceana Gold needed to do better in communicating with staff about the changes.

 - Additional reporting by Bill Campbell.

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