E tū has slammed the government's decision to end Ara Ake's funding. SAM SCANNELL / Taranaki Daily News
The country's largest private sector union has hit back at the government's decision to axe funding for a New Plymouth-based energy innovation centre, calling it another blow for Taranaki workers and the region's future.
E tū, which represents more than 45,000 workers nationwide, criticised the move after the closure of Ara Ake was included in Budget 2026 but not widely announced.
The government confirmed the centre's $6 million in annual funding would end from July 1, with its work folded into the Energy Efficiency and Conservation Authority (EECA).
Ara Ake was established in 2020, ostensibly to help Taranaki transition from oil and gas to develop new energy industries. In 2023, it received a commitment of about $70m over 10 years.
Last week New Plymouth MP David MacLeod said Energy Minister Simon Watts had looked for savings across the sector and identified duplication between Ara Ake and EECA.
Ara Ake received $6 million of funding from the government annually. SAM SCANNELL / Taranaki Daily News
In a press release E tū director Mat Danaher said scrapping Ara Ake made little sense at a time when New Zealand faced energy security concerns and Taranaki workers were looking for certainty.
“Pulling the plug on an organisation set up to develop New Zealand-owned, New Zealand-based energy solutions is perverse," Danaher said.
"Workers want secure jobs, reliable energy and confidence that someone has a plan for the future. This decision tells them the Government doesn't."
He said workers had been told they needed to help prepare for change in the energy industry and Ara Ake was built to deliver “exactly that” and called for the government to reverse the decision to give workers, communities and businesses certainty.
“Folding its work into a national agency is not the same as having a centre in Taranaki, working alongside Taranaki businesses and workers."
Taranaki Chamber of Commerce chief executive Arun Chaundhari says he prefers funding be reduced rather than scrapped. (File photo) SAM SCANNELL / Taranaki Daily News
E tū member Jesse Davis, who had worked in Taranaki's energy industry for 10 years, said the decision showed the government had given up on the region.
"It's beyond disappointing to once again see this Government making decisions for our region that keep hurting us and our people," he said in a press release.
He said Taranaki was a hub for oil and gas, which brought good, secure work and the transition into something more sustainable was left behind.
"Losing the funding for Ara Ake is another chance gone for our region to become an innovator for the future."
When the closure was revealed at the end of May, Taranaki Chamber of Commerce chief executive Arun Chaudhari said he was also disappointed with the decision and preferred Ara Ake to continue under reduced funding rather than being scrapped all together.
“The chamber has seen first-hand the value Ara Ake brings in helping position Taranaki as a national leader and facilitator in future energy solutions,” he said at the time.
New Plymouth MP David MacLeod says the government looked at savings across the sector and identified duplication between Ara Ake and Energy Efficiency and Conservation Authority. (File photo) JONATHAN ABPLANALP / Taranaki Daily News
After Budget 2026, MacLeod understood the decision would have an impact on the Ara Ake team and thanked the board for their contributions they made to the energy sector.
"The Government is committed to ensuring there is affordable and reliable energy for Kiwi households and businesses and we're making the decisions needed to achieve this," he said.
