SITING OF ALCAN

Press, Volume CI, Issue 29744, 10 February 1962, Page 12

SITING OF ALCAN

M.P.’s Reply To Mr Hanan

Contesting the comments made on Wednesday by the Minister of Justice (Mr Hanan) on the establishment of Alcan Industries. Ltd., in the North Island, Mr M. A. Connelly, member of Parliament for Riccarton, issued the following statement yesterday: The implication of Mr Hanan’s statement is that South Island Labour members of Parliament are to blame for Alcan not establishing its aluminium fabricating plant in the South Island. In fact, the real reason the plant went to Auckland—and it is stated in the report in “The Press”—is that Alcan were able to negotiate a special rate for their electric power reouirements with the Auckland Electric Power Board. The Christchurch Public Relations Office, in conjunction with local bodies and Labour members of Parliament. did everything possible to induce the company to site its works here.

The ME.D.. the SpringsEllesmere Electric Power Board and the North Canterbury Electric Power Board all prepared special competitive power rates for consideration by Alcan. The advantages which Christchurch offered from the point of view of availability of labour, cost of land, housing. educational and research facilities, water supnly and ease of access to all forms of transport could not be equalled elsewhere in New Zealand. However, a specially advantageous nower rate offered by Auckland was believed to be the deciding factor in the plant going there. It was understood in Christchurch that the company was not ore pa red to site its plant south of Canterbury. No doubt that was why the Dunedin City Council and the Southland Electric Power Board were not consulted. For Mr Hanan to “regret" that this industry was not sited in the South Island comes strangely from one who made no effort to see that it was. Further, the former National Government made no effort to stimulate new industrial development in the South Island. In fact, it created conditions under which some old-established South Island industries suffered losses The present National Government has already stooped the establishment of a South Island cotton tpill. By contrast, in three years of Labour administration, several large South Island projects, including a cable

factory, carpet factory, cotton mill, and aluminium smelter got under way. The records of the respective Governments speak for themselves.

Mr G A. Franks, who is on a visit to England, was yesterday granted leave of absence by the Christchurch Metropolitan Milk Board Mr Franks expects to be back in New Zealand early in July.