Two mill closures in the central North Island this week leave at least 230 people out of work, devastating the local economy. Much of the blame has been placed on power prices and the gentailers raking in big profits. Political Reporter Russell Palmer looks into how the government responded and what the Electricity Authority plans to do next time there's a dry year.

The audio for this episode has been amended from the version which played on air, in which it was stated the Social Development Minister told Morning Report a long-term funding boost would be of little help. The minister was in fact talking about a short-term funding boost.

Go to this episode on rnz.co.nz for more details