New Kapuni Talks To Seek Agreement On Costs Of Gas

Press, Volume CVI, Issue 31124, 29 July 1966, Page 1

New Kapuni Talks To Seek Agreement On Costs Of Gas

(From Our Own Reporter) WELLINGTON, July 28. New negotiations between the Government and the Shell-8.P.-Todd group over the purchase of raw Kapuni natural gas have begun. The discussions are based on the latest estimates of cost received from its overseas consultants.

The Minister of Mines (Mr Shand) said tonight the negotiations were aimed at finding enough agreement on costs so that a full report could be put before the Government on whether buying the gas and cleaning it for piping to Wellington and Auckland was an economic proposition. Mr Shand also gave details of an exchange of telegrams with West Coast coal interests seeking assurance of the Industry’s future, and clarification of apparently conflicting official statements.

Mr Shand said the Government would make a decision on buying the gas after it had studied the report. He said he had received several telegrams from trade union interests concerned with coal. Their inquiries centred around two points—they wanted to be sure the Government was aware of the effect the use of Kapuni natural gas would have on the mining industry in the Grey valley and they wanted an assurance that the Government would give this consideration full weight. Mr Shand said the trade unions would be given an opportunity to make their representations to the Government. Cost of Conversion They drew Mr Shand’s attention to an apparent contradiction between estimates by Mr Shand and the deputy chairman of the New Zealand Gas Association (Mr C. H. Benney) of the Co t of converting domestic equipment to use natural gas.

Mr Shand replied to the Westland Labour Representation Committee, the West Coast Composite Coal Committee and the Dobson Miners’ Union as follows: “Have received your recent telegram alleging conflicting statements on Kapuni gas. 1 assure you there is no difference between myself and gas officials on this issue.

“My statement in the House referred to the maximum cost of converting appliances possibly in poor condition in a house equipped with gas cooker, water heater and space heater whereas the gas official

quoted the cost of converting s gas stoves presumed to be in ( good condition. i “I adhere to my earlier ad- < vice that further expert opin- t ion on Kapuni gas is unneces- t

sary and that it rests with the Government, as having to regard the best interests of the country as a whole, to decide the issue relating to utilisation of Kapuni natural gas.”