Power Rights Granted For Carbide Industry Scheme

Press, Volume CI, Issue 29853, 20 June 1962, Page 14

Power Rights Granted For Carbide Industry Scheme

(From Our Own Reporter) WELLINGTON, June 19. An economic evaluation of a calcium carbide industry at Westport with electric power from a hydro-electric generating station on the Ohikanui river will result from a decision by the Government to grant the necessary water rights to a New Zealand company.

Messrs Wilkins and Davies, Ltd., of Lower Hutt, a construction firm, in association with B. F. Goodrich and Company, of the United States, have surveyed several tributaries of the Buller River with a view to building their ' own power station. After learning that the Government declined to provide the proposed industry witb bulk power at cut rates—low rates being essential to meet competition with proposed exports—the firms hope to produce their own power for about 0.3 d a unit. A spokesman for Wilkins and Davies said last evening that power from Manapouri was expected to cost 0.21 d and the firm was hopeful of realising the 0.3 d rate, even on a smal’ scheme. The whole project would cost about £4 million, he said. Exports Planned Less than a sixth of the planned economic output of 25,000 tons a year would be

used by the New Zealand market. The annual consumption of calcium carbide in the plastics and other industries is between 3500 and 4000 tons a year. The rest would have to be sold abroad. In addition to cheap power supply, the industry in New Zealand could be assisted by the State scheme to improve the Westport harbour. The Goodrich Company is examining the economics of the scheme, said the spokesman for Wilkins and Davies. These depend largely on the export market and power supply. Later the company will approach the Government over import licences for equipment.

Th: industry could employ 200 to 250 persons, he said, and could encourage subsidiary industries. Suitable limestone and coal are also required for calcium carbide production. In 1960. the Government discussed the prospects of the industry on the West Coast with overseas interests. The Minister of Works (Mr Goosman), who confirmed the Government’s granting of water rights, said tonight that there was no documentary evidence of a Labour Government offer on cheap elpower to aid the industry, and, if necessary, rail freight concessions.

The first stage of the power station envisaged by the firms would have an output of 12,000 kilowatts Later the industry would need 15,000 to 20,000 kilowatts, said the spokesman. The Minister of Customs

(Mr Shelton) said the calling of tenders for the required work as soon as it could be planned had been approved by the Cabinet The Goverment was deeply interested in a calcium carbide industry for Buller if it could be established, but little ?>rogress had been made so ar in investigations in New Zealand and overseas, the large supply of cheap power being a big problem "The green light has been given and it is the earnest hope of my Government that this enterprise will result in the establishment of an industry in the Buller to manufacture calcium carbide and its associated products,” Mr Shelton said.