F.O.L. Criticises Kapuni Spending

Press, Volume CIV, Issue 30940, 22 December 1965, Page 3

F.O.L. Criticises Kapuni Spending

GVcu? Zealand Press Association) WELLINGTON, Dec. 21. A deputation from the Federation of Labour, and the Seamen’s, Watersiders’ and Miners’ Unions had protested yesterday to the Minister of Mines (Mr Shand) at measures unfair to the coal industry and expenditure of up to £9 million upon an uncertain Kapuni natural gas field, said the federation’s president (Mr T. E. Skinner) today.

The deputation had expressed its concern at the lifting of IJd a gallon freight charge on oil to all subsidiary ports as a move which would encourage more serious competition with coal, said Mr Skinner.

“We also asked the Minister that the Government not proceed with the Kapuni natural gas scheme until further and more comprehensive investigations and evaluations have been made,” said Mr Skinner. “We are of the opinion that as the Government is financing the pipeline and distribution of the gas to the extent of £Bm or £9m, the whole matter should be a Government undertaking. “We consider that this would allow the development of any natural gas resources in conjunction with coal and not in competition with it “We also expressed our condemnation of the fact that if natural gas supplies are not as large as envisaged, and do not come up to expectations, this will mean further import of oil and a further drain on our overseas funds. “We told the Minister that if there were any disruptions of the coal industry as a result of the development of the Kapuni natural gas, coal miners should be entitled to compensation and rehabilitation. “This is a Government responsibility. We think that the time is inopportune for this large expenditure. With the present credit squeeze and the country's economic difficulties this is not the time for large-scale expansion and development,” he said.