Manapouri Disputes Annoying Mr Shand

Press, Volume CVI, Issue 31125, 30 July 1966, Page 1

Manapouri Disputes Annoying Mr Shand

GVew Zealand Press Association)

WELLINGTON, July 29.

The Minister of Electricity (Mr Shand) said in Parliament today that he was getting “fed up” with union jurisdictional disputes at Manapouri and warned they were a threat to the power scheme. “It is in the hands of the trade union movement to hold up the power supply of New Zealand if it wants to.

“But I still believe we’ll get these jobs finished. A hard core of men employed on public works is as fine a force as one could find.”

He was replying to the Deputy-Leader of the Opposition (Mr Watt), who had questioned the realism of power planning. He said the Power-Planning Committee proposals were based on the assumption that work on Manapouri, the Tongariro power scheme and the Marsden Point steam station would proceed as planned. If the work was not done, the proposals “fell apart.”

The assumption on Tonga-1 riro was that power for the' national grid would be avail-1 able in 1972, yet every member of Parliament knew there was no progress on actual construction, said Mr Watt. Marsden Point was due for completion in 1967, yet everyone knew it was behind schedule.

The Minister of Works (Mr Allen): Talk to the F.O.L. Mr Watt asked if the steam station could be constructed at New Plymouth. Rising Cost At Manapouri, the contractors already had approached the Government for an extension of time and an increased payment. The cost of the scheme had risen by £lO million or £l2 million. Mr Shand said that as had always been the case in the construction of electricity

’projects it was assumed that once started they would be ipushed forward as rapidly as I planned. There had been more 'trouble at Manapouri than on most projects. There were two kinds of difficulties. Conditions in the tailrace tunnel were far worse than expected, but the men were sticking to a tough task magnificently. Union disputes, which had been with the scheme from the start, were the second difficulty. “I’m getting fed up with it,” said Mr Shand. “The department is getting fed up with it.”

At Marsden Point there had been only one major delay,

Steam Station

A decision had not yet been made on the site for the steam station, but it could be completed easily between now and the time it would be required. Mr J. R. Harrison (Govt., Hawke’s Bay) said one of the causes of trouble at Manapouri had been “the attitude of the F.O.L. toward getting on with the job.” Mr Harrison said he was concerned over New Zealand’s present lavish use of power, almost regardless of cost. This could not continue forever, and it was foolish to squander a valuable resource.

Mr R. L. Bailey (Opp., Heretaunga) said the Government was setting too tight a schedule for power projects.

“We are told that the industrial problems at Manapouri are oeing caused by labour problems. Mr Shand knows that is not correct,” said Mr Bailey. The Chairman of Committees (Mr R. E. Jack) asked Mr Bailey to withdraw this last statement.

“The Minister, if he is a competent Minister, should know that is not the problem,” said Mr Bailey.

He said the Government should “hang its head in shame” over the Maraetai II scheme. Work on it had been suspended by the Government and now it was to be completed it would cost far more. Mr Bailey said that at the present rate of progress Manapouri would not be completed before 1972 or 1973, instead of 1969. Labour And F.O.L. The Under Secretary for Finance (Mr Muldoon) said that the Opposition had had a reasoned answer from Mr Shand. “I suggest Mr Bailey is an ignorant man on this subject.” Mr Watt objected, and the Chairman of Committees ruled that “ignorant” used in that context was a borderline infringement of Standing Orders.

“I am happy for the House to judge for itself whether the member is ignorant or not on this question,” said Mr Muldoon.

i He said that the House

knew how close the Labour Party and the Federation of Labour were. “If the Labour Party had any sense of responsibility, it would help the Government solve these ridiculous disputes instead of bringing them into this House and making capital out of them.” Mr Muldoon said that when Government members had visited the Manapouri, a tunnel worker had told them—“We want to get on with the job. We have a sense of responsibility, too.”

This was one of the workers the Labour Party represented.

“Mr Watt—the previous Minister—is the one who should be condemned,” said Mr Muldoon. “This is not a question of trade union conditions. It is a question of two of the most ridiculous strikes that this country has ever had, and the position at Tongariro is nearly as bad.” Cable Suggested Mr A. H. Nordmeyer (Opp., Island Bay) said he hoped the Government would very carefully investigate some of the assumptions made in the engineer’s report on the scheme for the coal station. It had been very clearly demonstrated that power could be taken from one point to another—a considerable distance away—by a submarine cable between the two islands. To have power delivered on time, a station powered by Buller coal should be used to carry power to other parts of the country. He suggested that the Government should concentrate on developing power schemes already in hand whether they produced power by the use of water or coal.

Mr A. D. Dick (Govt., Waitaki) said that Benmore had been completed ahead of schedule and Aviemore was now ahead of schedule. “It is just not true to say that all Government power schemes are behind schedule.”

Mr Shand, on the question of transporting coal to the North Island power station or constructing another Cook Strait cable, said: “The principal reason which could have activated the Government’s consultants was that they were quite satisfied that the cost of transporting coal would be substantially less than transporting power.” The Opposition had challenged the figure given by the consultants of 23s a ton for transporting coal from Westport to the North Island.

Mr W. E. Rowling (Opp. Buller): We will continue to challenge this figure. Mr Shand: Our report is confident that coal can be carried for 23s a ton.

Admitting that transport costs for shipping coal from Westport to New Plymouth stood at between 53s and 57s a ton at present, he pointed out that New Zealand’s shipping did not at present have the benefit of modern loading and unloading equipment. The consultants’ report said there would be a saving of £1 million a year by shipping coal. Mr W. A. Fox (Opp., Miramar) said he deplored Government attacks on the | Federation of Labour—a re-

sponsible body which was showing its responsibility by aiding the production output of the country. “The Labour Party is no more influenced by the Federation of Labour than is the Government by the Associated Chambers of Commerce.” In the hubbub this statement provoked, the Chairman of Committees had to call for order three times before he could make himself heard and he told Mr Fox: “I will not tolerate a situation in which I have to shout for order more than three times.” “A senior member of this House should know better,”! he said. He told Mr Fox that comment on the F.O.L. —in the context he used —was not relevant to the debate. Mr. H. L. J. May (Opp., Porirua) claimed all power shortages and cuts that nad occurred in New Zealand happened under the administration of the present Government. There was more muddlement in the Electrical Department than any other. Mr Shand invited the Opposition to state whether it would support the Government if it introduced legislation to give exclusive jurisdiction to the New Zealand Workers’ Union on all power construction projects. Comalco Interest Answering Opposition inquiries about Comalco at Manapouri, Mr Shand said the original contract envisaged that the company would give notice, resulting in its full ration of power being taken at a fixed date. This had been renegotiated and instead of having all the power available in 1971, Comalco had agreed to take about only half at that date, and give the Government up to three years and a half notice on its requirements for the rest.

Mr Fox had asked if this would make the contract less attractive, said Mr Shand. On the contrary, it was more attractive to Comalco and to the electricity consumer. Comalco would not have to pay for power in a period when it did not use it all, and the consumer could use it.

To Mr G. A. Spooner (Opp., Wanganui) Mr Shand said the site of the steam station would be judged on its merits, not on its political advantages. A station at New Plymouth would make no difference to the National Party’s candidate winning that seat. “And I will not decide in favour of Wanganui merely for the opportunity of putting Mr Spooner out of his seat.”