Rotorua & Bay of Plenty

Fletcher Building is not going to rebuild its Taupo Medium Density Fibreboard plant destroyed by fire last year despite receiving a net $81 million from insurers.

Given the predominant export nature of the plant, and the better cost competitiveness of alternative locations, it will not be rebuilt in Taupo, the company said in a statement.

About 70 workers have already been made redundant from the plant. A particle board plant at the same site is still operating, employing around 35 workers.

Fletcher Building had two large insurance claims outstanding, one for the MDF plant and another for the failure of the transformer at Pacific Steel which disrupted production.

The company said it has accepted a cash settlement of its claim against the insurers of the MDF plant, the gross amount of which was $91 million. After deductions the net amount was $81 million.

The resolution of the transformer claim was advanced enough to make a reasonable estimate of the final outcome.

After plant write-offs, redundancies, and business interruption costs the company expects its operating earnings in the year to June 30 to be $14 million higher. Net earnings will be $24 million higher.

Union leader Laila Harre says Rotorua MP Steve Chadwick's bill for shops to open on Easter Sundays will see workers bullied into working.

Ms Harre, who has been in Rotorua this week in her role as National Distribution Union secretary, told the Daily Post she had about 8000 retail members in the union and a majority were against working on Easter Sunday.

She said the union had always advocated there should be three-and-a-half days a year where there is no trading.

"We have never had a member of ours who works in shops trying to change this policy."

She said despite the bill allowing staff to not work if they don't want to, she said the pressure on those workers, particularly in smaller businesses, would be huge.

"We have Members of Parliament like Steve Chadwick who live in completely different worlds than shop workers.

"Most shop workers live hand to mouth on low wages and are not in a position to stand up and refuse to work.

"It's good to have that protection [in the bill] but it's not worth anything."

Mrs Chadwick said Ms Harre had a valid point and she would be happy to make amendments to her bill if anyone could see a better way.

"If someone gives me the wording, I would be quite happy to put that through as an amendment but no one has."

She said several of her colleagues, including Minister of Labour Ruth Dyson, were working on ways to get stronger worker protection which could end up being an amendment to her bill.

That could include ensuring staff who worked Easter Sunday got time and a half as well as a day in lieu, she said.

Mrs Chadwick's Shop Trading Hours Act Repeal (Easter Trading) Amendment Bill is due to be heard in Parliament next month.

If passed, it will allow local authorities to decide if shops in their area can trade on Easter Sunday.

It will see all workers rostered to work on Easter Sunday covered by the Holidays Act 2003. If passed, local authorities will consult with their communities before deciding whether shops in their areas can open on Easter Sunday.