Expensive now, says Mr Kirk

Press, Volume CXII, Issue 33065, 4 November 1972, Page 1

Expensive now, says Mr Kirk

(From Our Own Reporter) MOTUEKA, November 3. New Zealand would have to pay millions of dollars to buy into the Maui gas field, because the National Government had sold the shares in BP, the Leader of the Opposition (Mr Kirk) told an audience of about 250 in the Motueka Memorial Hall this evening.

If the Government had not sold those shares, it would already have had a shareholding in Maui, he said. The Government had decided to buy the half-share in the Maui field because it had been unable to negotiate terms for the use of the field with the consortium, he alleged. “COST UNKNOWN” “On Monday, the Prime Minister announced that the Maui negotiations were proceeding satisfactorily. On Wednesday, he said it was deadlocked and his answer to this was to buy a half share in the oilfield, although he does not know how much it is going to cost” This step had been taken to break the deadlock, said Mr Kirk. The Government had said the consortium’s price was not good enough and the consortium’s answer was that it could not offer any more.

“CONCEALED SUBSIDY” Under the proposal to buy a half share in Maui, the Government would find half the cost of development and it seemed apparent that the Government’s answer to the problem was to offer a concealed subsidy by having the taxpayer carry half the cost, he said.

"If it had not sold the BP shares acquired by a Labour Government it would have been already involved in the consortium.”