Gas Industry’s Role In N.Z. Economy

Press, Volume CIV, Issue 30901, 6 November 1965, Page 6

Gas Industry’s Role In N.Z. Economy

(New Zealand Press Association)

WELLINGTON, Nov. 5.

The gas industry must play an expanding role in the power structure of New Zealand’s developing industrial economy, the Under Secretary of Mines (Mr P. M. Outhwaite), told the Gas Association conference today.

Deputising for the Minister of Mines (Mr Shand) Mr Outhwaite said there was no doubt that there was only a short time before many resources would be called into play to provide power. Nuclear power would also become essential, he said. “But although we must give attention to these new

developments, I make a plea for a more understanding approach towards the part coal must continue to play in making gas, and towards the problems which face the coal industry as new and more sophisticated techniques are introduced into the gas industry,” he said. “If, or rather when, natural gas becomes available there will be a fast changeover.” said Mr Outhwaite. “The New Zealand coal industry must continue to operate its coalproducing mines to the maximum capacity until there is a sudden and violent reduction in coal requirements. “This means mines producing gas coal cannot undertake capital development and must continue producing to capacity to try to increase production.”

The strain produced by the lack of incentive for capital development did not lead to efficiency, said Mr Outhwaite. The industry was also labouring under the stress of competing with the electricitygenerating system, but the latter’s margin against gas must lessen.

“The industry will become more competitive and take its rightful place as an energy producer,” said Mr Outhwaite.