Fears for refinery jobs
More than 400 staff and contractors could lose their jobs and thousands more could be impacted if Refining NZ closes the Marsden Point oil refinery, the First Union says.
In total, throughout the country, the refinery directly or indirectly provided work for 3500 workers and contributed 8 per cent of Northland’s GDP, First Union organiser Justin Wallace said.
Refining NZ, the owner of the Marsden Point oil refinery, said yesterday that it planned to simplify the refinery side of its business but was also evaluating a proposal that would go further and see it switch instead to importing pre-refined fuel.
Wallace believed that if Refining NZ did close the refinery and switch to an import model, about two-thirds of the 400 staff and 250 contractors at the facility could lose their jobs.
The facility would still store fuel and pump it to Auckland via a pipeline.
The mood at the refinery in the wake of the company’s update on its strategic review was ‘‘not very good’’, he said.
‘‘Everyone is on a bit of a downer now with the company pretty much focussing on a lowcost model.’’
Whanga¯rei MP Shane Reti, said he had been in contact with ‘‘senior officials’’ at Refining NZ over the past week and had ‘‘impressed on them the importance of retaining the industry and jobs in the region’’.
‘‘Together with a jobs reduction at the close-by Carter Holt Harvey LVL plant these actions will have a big impact on the local Bream Bay economy,’’ he said.
Wallace said Refining NZ last year developed a proposal for a ‘‘green hydrogen’’ plant at Marsden Point that could have guaranteed the future of the refinery’s existing workforce and created additional jobs.
Green hydrogen is used to describe the process of making hydrogen from renewable electricity.
But an approach for funding through the Provincial Growth Fund had not advanced, he said.
‘‘Somewhere along the line, around November, that disappeared.’’
Energy Minister Megan Woods said the Government had been ‘‘engaging with the refinery throughout its review’’.
‘‘We’ll continue to monitor developments and work with Refining NZ where necessary to ensure that economic opportunities in Northland can be maximised and utilised.’’
The First Union has about 180 members at the refinery covered by a collective agreement.
The refinery has been grappling with a global collapse in refining margins and a sharp fall in the demand for jet fuel.
Competition from newer refineries in Asia is increasing, and chairman Simon Allen said margins were expected to remain at historically low levels for an extended period of time.
The difficulties were exacerbated when motorists stayed off the roads during the coronavirus lockdown.
Although demand for petrol and diesel has almost recovered, refining is currently suspended at Marsden Point for several weeks in July and August to let fuel demand catch up with supply.
Z Energy welcomed Refining NZ’s proposal to scale back its operations and said it would like it to switch to an import model.
‘‘Z has made it clear to the board of Refining NZ, to Z shareholders and to our customers, that we believe moving to an import terminal model is the best outcome for the refinery and New Zealand,’’ chief executive Mike Bennetts said.