Gary Petley. Photo: Libby Kirkby-McLeod / RNZ
On the edge of recession - that's where Aotearoa's sitting right now, according to Labour.
New figures reveal a sharp contraction in gross domestic product (GDP) - the broad measure of economic growth.
The economy shrunk 0.9 percent in the three months to the end of June - primary production, manufacturing and construction leading the decline.
South Waikato is suffering. Carter Holt Harvey is looking to close its Tokoroa plywood plant, canning almost 120 jobs
That follows about 150 job losses in the region earlier in the year with the closure of the Kinleith pulp and paper mill.
The Kinleith mill in Tokoroa Photo: Libby Kirkby-McLeod
South Waikato Mayor Gary Petley reckons small towns are on the brink of being mothballed.
"We need to look at ways that we can morph into something different other than being termed as a 'timber town' anymore," he told Checkpoint on Thursday.
Petley said he had discussions with Regional Development Minister Shane Jones about a year ago, after the Tangiwai Sawmill and Karioi Pulpmill both closed down.
"Taking three hits in the space of 10 months is not good for any community… everything that I said in those discussions is really being borne out."
He said while the government had offered some support for people affected by the closures, more "high-level" plans were needed for the regions.
"It's easy for them to suggest, you know, 'we're going to announce that we're going to spend $70 million on tourism for concerts and sports events in Auckland' - it doesn't help our community and those communities like ours that are suffering because of processing plant closures."
He stood by his previous comments that the government does not "give a toss" about the regions.
"Some in higher spaces would find it unpalatable. I think that just needs to be said, because we're getting left behind and we need real help… There's nothing constructive that they are doing for anyone at the moment."
Finance Minister Willis blamed the slump on global turmoil and uncertainty driven by the United States' tariff rollout.
"The economy had been growing strongly in the previous six months, but suddenly had the stuffing knocked out of it," Willis said. "I feel for people and businesses who have been affected."
Willis said the latest data was "backwards-looking" and there were signs the economy was growing again as interest rates fell.
Former Finance Minister Sir Roger Douglas has called for her resignation over the latest data.
Labour's deputy Carmel Sepuloni said Australia's economy grew 0.6 percent over the same period.
"Where to next, you know? Is it the fault of the butcher, the baker, the candlestick maker, but not Nicola Willis? It's her responsibility - she's the Minister for Finance."
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