Industrial Promotion In South Island Urged

Press, Volume CI, Issue 29956, 18 October 1962, Page 18

Industrial Promotion In South Island Urged

(New Zealand Preet Association) WELLINGTON, October 17. There would be a power shortage in the North Island if the Cook Strait power cable was not operating by 1965 as it would be physically impossible to develop any alternative source by then, the Minister of Electricity (Mr Goosman) told the House of Representatives today. Mr Goosman said he had said industry should be located as close as possible to power sources “other conditions being equal.” Labour speakers had overlooked this. All industry did not depend to the same extent on cheap power.

The House was debating a motion by Mr S. A. Whitehead (Opposition, Nelson) that the Government review its policy to spend between £lB million and £25 million on the Cook Strait cable and use some of that money to assist in the establishment of industries in the South Island. Mr Whitehead said one of New Zealand’s greatest resources was its supply of electric power, but it was not doing enough to change ‘he power into commodities which could be sold in overseas markets. “If we are going to encourage industry to go to the sources of the power, there is no necessity for the cable at the present time,’’ he said. With the imbalance in population. Mr Whitehead said the Government should be doing whatever it could to encourage the development of the South Island. Mr Whitehead asked whether future power development at Lake Manapouri would be for a particular industry or for the Cook Strait cable.

He said the country should be doing more about * its natural gas resources. Was anything being done about bottling liquid gas for home consumption? Mr A. E. Allen (Government, Franklin) said the Government would support any industry which wanted to establish itself in the South Island if it was economic.

Mr W. E. Rowling (Opposition, Buller) said the assets of both islands should be developed equally. There could not be one economic standard for the North Island and another for the South Island. The two islands were not developing equally at present. Miss M. B. Howard (Opposition, Sydenham) said North Islanders should “come south and see the South Island with an intelligent eye.” Many had not been able to grasp the potential of the South Island.

“North Islanders want everything in the north. We want the same rights. We don’t went separate entities,” she said. Mr J. H. George (Government, Otago Central) said the South Island would have sufficient power to last it until 1975 if there were no Cook Strait cable. But hundreds of thousands of kilowatts would go unused. “For years the Dunedin City Council offered cheap power.” he sand. “But what industry did it attract to either Dunedin or Otago?"

Mr George said the Government's offer of cheap power had not been rushed because it often took years of investigations before an industry could be established.

“No government would deliberately take power away from the South Island if it could be used there,” he said. Mr P. Blanchfield (Opposition, Westland) supported direction of industry by the

Government. “It was done in wartime and it can be dore in peacetime, particularly when the Government has a tie-up with the industry. “The Government can help with finance, land and import licence*,” he said. “And I maintain it is the Government’s right to advise and, if necessary, direct industry to where it will be of greatest benefit.” Mr Goosman said that where an industry wanted and needed cheap power he thought the Government should be able to say where it should be established. Other things being equal it should be close to the source of power. Mr Goosman said there would be two stage* in the Manapouri scheme. Hie first would produce just under 300,000 kilowatts but Coma’.eo would then require only 200,000. Comaloo had approached the Government to take the other 100,000 kilowatts.

Mr H. Watt (Opposition, Onehunga): Has no agreement been made yet? Mr Goosman: Not yet.