Lyttelton proposed for Coast exports

Press, Volume CXI, Issue 32706, 8 September 1971, Page 1

Lyttelton proposed for Coast exports

("Neto Zealand Press Association) WELLINGTON, September 7. The officials’ committee on West Coast development proposals has concluded that there are worth-while possibilities for the development of an export trade in coal, Wood products, and processed ilmenite; and has also concluded that the use of the rail link to Christchurch and shipment through Lyttelton is the most economic transport alternative from the country’s point of view.

Announcing this today the Minister of Indus- ' tries and Commerce (Mr Shelton) said that the committee, which was formed last August to examine the possible use of these natural resources on the Coast, had now reported to the Government.

“From a regional development point of view the use of these resources should not only greatly increase employment opportunities, but should also stimulate further development within the area,” said the Minister.

“The port of Lyttelton will be capable of accommodating the large bulk carriers expected to be involved and this alternative will permit maximum use to be made of existing capital facilities generally,” he said. “An export outlet through Lyttelton will also enable the rail services in the West Coast region to be retained and expanded, and this should be a further stimulus to the development of the area." said Mr Shelton. “On the other hand the construction of an adequate new deep-water port on the West Coast was technically difficult and was the most costly and least reliable way of handling the export products from this region. ‘The committee has carefully examined a number of proposals for the installation of deep-water facilities on the Coast and has reached i the conclusion that the construction of adequate facilities, even if these were tech-

■ nically feasible, would entail very substantial capital and operating expenditure,” said the Minister. He said that the committee also gave very considerable consideration to the social benefits for the region of the various means of transport and it concluded that there was insufficient justification for the massive expenditure which the construction of port facilities would involve. ‘The choice of Lyttelton as an export outlet would create a substantial number of extra jobs on the West Coast, quite apart from the indirect em-

ployment - creating effects through the expansion of services generally,” he said. “At the same time existing activity, including the normal coastal trade through the ports of Westport and Greymouth, is not expected to be adversely affected. “As there is inadequate justification, from the country’s point of view, for the development of a deep-water port on the West Coast even in the context of a package deal involving a number of resources, the development of the individual resources can proceed as separate projects.”

Mr Shelton said that tentative proposals so far received for conglomerate development, involving a number of resources as a package deal, would not now be pursued. He said that the Government expected to be in a position to consider submissions in respect of coal and other resources' when the necessary background work had been carried out

The Government is to publish an edited version of the officials’ committee report with confidential information deleted, and this is expected to be on -public sale in about two weeks.