Growing Optimism On Smelter Project

Press, Volume CVIII, Issue 31635, 22 March 1968, Page 1

Growing Optimism On Smelter Project

(From Our Own Reporter) WELLINGTON, March 21. Optimism is growing in Wellington that Gomalco will soon take up its option to use Manapouri power for smelting aluminium in Southland.

Further detailed talks on the formation of the new giant industry were held for four hours yesterday between the managing director of Comako (Mr D. J. Hibberd), backed by representatives of two large Japanese aluminium interests, and senior Cabinet Ministers.

The Prime Minister (Mr Holyoake) said tonight: “My understanding is that Comalco is making satisfactory progress in financing the smelter. I would think that if they are to take up their option, they would do it as soon as they can.” Smelter Finance Mr Hibberd said Comalco had “broadly settled” the conditions under which the two Japanese companies, Showa Denko K. K. and Sumitomo Chemical Company, Ltd, would share the cost of establishing the smelter. For the first time, senior executives of the two companies accompanies Mr Hibberd to talks at Parliament Buildings, although they have previously inspected the smelter site. Mr Hibberd said he expected only two or three more meetings with the Government would be needed before Comalco could announce a decision. “When discussions are complete, we will make a final public statement,” he said. Several Government sources agreed that agreement could be reached soon, possibly in great detail at further talks tomorrow. One official said: “They would not go to this trouble just to tell us ‘No.’ ”

Gilberthorpe P.T.A.—Officers elected at the annual meeting of the Gilberthorpe School Parent-Teacher Association were: patron, Mrs D. Mowat; president, Mr W. A. Merritt; vice-presidents, Mr G. H. Morrell and Mrs E. Sandford; secretary, Mrs J. Stanley; treasurer, Mrs J. Rowe; committee, Mesdames C. Falconer and C. McKenzie, Messrs J. Carruthers and G. Woods.

The talks yesterday continued negotiations adjourned in January on the tax Comalco will pay on smelting profits, some duties Comalco will pay on imports and on the supply of refined aluminium to the local market. Mr Holyoake said the Government hoped New Zealanders would have an opportunity to make substantial investment in Comalco. “This was not discussed today,” he said, “but our previous discussions on this matter have been satisfactory.”