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The government is being told to fix its carbon emissions trading scheme to ensure Southland's biggest employer remains open.
The Tiwai Point Aluminium Smelter has told parliament that if the bill is passed in its current form, it would head off shore to China.
The scheme , which is due to be phased in next year, is designed to help combat global warming by creating an incentive for businesses and households to make decisions that are good for the environment, rather than those which create greenhouse gas emissions.
But Invercargill Mayor Tim Shadbolt says the economic impact of the smelter going offshore would be huge as the company contributes $3.7 billion annually - and he wants to meet with the government to discuss its carbon emissions trading scheme.
He says almost 1,000 people turn up to work at the smelter every day, making it the region's largest employer.
Shadbolt says the company is also a great corporate citizen and the closure would have huge impact socially. The smelter has been involved in a healthy homes project and provided educational scholarships.
He says the company is producing the purest form of aluminium,
something that no one else in the world can do.