Energy workers in Taranaki say the Government’s decision to cut funding for Ara Ake has dealt a major blow to the region’s future, raising concerns about jobs, economic development, and New Zealand’s transition to cleaner energy sources.
The funding cut was revealed through Budget 2026 documents, with no formal announcement accompanying the decision. Energy Minister Simeon Brown later confirmed that Ara Ake’s annual $6 million Government funding will end on July 1.
Established in 2020, Ara Ake was created to help Taranaki move beyond its historic reliance on the oil and gas industry by supporting innovation, renewable energy projects, and the development of sustainable industries. In 2023, the Government committed approximately $70 million over a decade to support the organisation.
Under the new arrangement, Ara Ake’s functions will be absorbed into the Energy Efficiency and Conservation Authority (EECA), ending its role as an independent Taranaki-based centre focused on regional energy innovation.
E tū member Jesse Davis, who has worked in the energy sector in Taranaki for a decade, says workers are feeling increasingly abandoned as employment opportunities continue to decline across the region.
He says Taranaki once provided secure and well-paid jobs through the oil and gas industry, but the region has struggled to attract replacement industries as the sector contracts. Davis believes Ara Ake represented an opportunity to create new employment pathways and position Taranaki as a leader in future energy technologies.
The impact of ongoing job losses has forced many workers to seek employment outside the region, placing pressure on families and communities already dealing with economic uncertainty.
E tū Director Mat Danaher says the decision comes at a time when New Zealand is grappling with rising power prices, declining gas reserves, and growing concerns about long-term energy security.
He argues that removing support from an organisation established to develop New Zealand-based energy solutions is difficult to justify, particularly when workers are looking for certainty about future employment opportunities.
Danaher says the loss of a dedicated Taranaki-based organisation risks weakening local engagement with businesses and workers, despite assurances that EECA will continue aspects of Ara Ake’s work nationally.
The union is calling on the Government to reverse the decision, saying workers, businesses, and communities need confidence that there is a clear plan for the region’s economic future.
The funding cut is expected to intensify debate over the Government’s approach to renewable energy, regional development, and support for communities navigating the transition away from traditional fossil fuel industries.
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