We got a rare bit of good economic news today hearing that Tiwai Point Aluminium Smelter is committed to staying here for at least another 20 years.  

Normally, I don't have a lot for time for Tiwai. And that’s largely because of how the owners have behaved in the past: threatening to leave, going cap in hand to the government, getting saved, then a few years later threatening to leave again... getting some assistance, then a few years later threatening to leave again.  

So, I'm always tempted to be hard on them. But this time... I'm actually relieved that those three electricity companies - Meridian, Contact and Mercury - have come to the party to keep Tiwai point going. Simply because we can’t afford to lose such a big manufacturer. 

It's not a particularly sexy subject, so it doesn’t get talked about nearly enough.  

But we have lost a lot of manufacturers out this country... to the point that we should actually be quite worried about it. Marsden Point has been closed.  There have been threats that Glenbrook Steel Mill might close (if it can’t get itself together). A 30-year-old Gisborne Wood Mill closed just before Christmas, a 40-year-old Kawerau Paper Mill closed too. James Hardie shut its NZ manufacturing. Fonterra closed a couple of Waikato plants last month. 

Manufacturing has been contracting since March last year. Back in 1992 the goods producing part of our economy was 35%.  Now it’s down to 20% - that's money lost.  

Now, I don’t know what kind of sweet deal those electricity companies offered Tiwai to make them sign on for twenty years, because that’s a big commitment. And I don't know how much of Tiwai committing for that long is because the parent company Rio Tinto is trying very hard to rescue its corporate reputation by not being bullies and bad guys anymore.  

But whatever the case is... It almost doesn’t matter. I'm just pleased we’ve got them sticking around.  

LISTEN ABOVE.