As New Zealand’s rural towns grapple with a growing exodus of residents, local leaders and business owners express their concerns regarding the economy’s decline. The situation has prompted discussions about the need for sustainable economic growth and government support. In particular, Ruapehu district mayor Weston Kirton has raised alarms about the neglect felt by residents, who believe that governmental inaction regarding surging energy prices has been “reckless.”
Economists and community members alike emphasize the importance of addressing these challenges to prevent further depopulation in regions like Ruapehu and Raetihi. Entrepreneurs such as Betsey’s Biscotti’s Janelle Finch and Bismarck Brewing’s Austin Hobson are on the front lines of this fight. Janelle owns and runs a café, while Austin owns and runs a brewery. They highlight the devastating effect that sudden mill closures and job losses have had on their communities and families.
Economic Decline and Its Impact
Nicola Willis has quickly established herself as a key player in New Zealand’s political landscape. She added that economic development is the key to keeping New Zealanders from moving away from rural communities. That’s the focus—as it should be—on re–shoring domestic manufacturing and bringing good, sustainable jobs home.
Shane Jones refused to be drawn on the issue, leaving everyone to guess as to where a solution might be found. At the same time, Kirton has personally laid the blame squarely on the government for failing to protect local mills under threat from increasing energy costs.
“At the same time the mills were closing, the government was the regular benefit of the profits of these power companies,” – Weston Kirton
The loss of mills has created a deep impact on the local economy. Owner of a small merino clothing company and café in Ohakune, Janelle Finch, shares just how much that has affected them.
“A lot of our friends had to move out of town … it had this chain effect,” – Janelle Finch
Finch’s sentiment is a common refrain of people across the country who have been put in the same position. The closure of the Winstone Pulp Mill in 2024 punched below the belt to individual workers. It tore apart the entire social fabric of the community.
Community Resilience
Despite these challenges, community members remain resilient. Raewyn Sinclair Raewyn lives in Raetihi with her partner, COREY BROWN, and their 4 tamariki. With these changes, together, they model and embody resilience as they move through the tough times. Brown holds down three jobs so that their family can afford to live and work in the quickly growing area.
“We’re working around the clock just to make do with what we had,” Sinclair shares, highlighting the collective effort to maintain stability amidst uncertainty.
“You’ve got a 1,000 year legacy that you want to be part of and want your kids to be part of – then suddenly you’re forced to leave,” – Raewyn Sinclair
This sentiment rings true to the community nature that pulses strongly through families that have generational roots in these neighborhoods. With increased mobility of families becoming a reality, regional pride and environmental concern hang in the balance.
Austin Hobson operates a beer microbrewery in Ohakune, alongside his partner Finch. He celebrates the incredible passion that so many residents have for their beautiful place to call home.
“It’s been really tough – but we’ve all survived things together and we’re still here because we support each other in whatever way we can,” – Austin Hobson
The Future of Rural Towns
The future for rural towns such as Ruapehu and Raetihi remains uncertain, as talks about the region’s economic recovery remain ongoing. Helen Leahy, chief executive of the local Ngāti Rangi tribe trust, notes that many residents desire to remain in their hometowns despite external pressures.
“Our people want to live in the region and not anywhere else. There is a lot of pride,” – attributed to Weston Kirton
As experts such as Shamubeel Eaqub, a principal economist at Simplicity warn, the effects of falling economic activity are real. Unfortunately, this major downturn can have permanent repercussions for communities.
“When that engine of economic activity gets turned off, it can be quite damaging for those places,” – Shamubeel Eaqub
He notes that places such as Australia have huge comparative advantages. This puts pressure on their residents, making it difficult for locals to stick around.
“[Australia] is richer, its got a deeper labour market, has more career opportunities – why wouldn’t you go?” – Shamubeel Eaqub
In spite of these intimidating truths, local residents such as Sinclair witness an immense opportunity for growth and positive change within their communities.
There is loads of opportunity for this region to explode in growth, we have a ton of entrepreneurs here, she states with optimism.