P.M. defends Maui decision

Press, Volume CXII, Issue 33067, 7 November 1972, Page 16

P.M. defends Maui decision

(N.Z. Press Association) WELLINGTON, November 6. The Prime Minister (Mr Marshall) said the Leader of the Opposition (Mr Kirk) was “grasping at straws” in an effort to discredit the Government’s success in opening the way for New Zealand to secure a substantial share in the ownership and control of the Maui oil field. On Friday night Mr Kirk, speaking at Motueka, said the Government had committed the country to as yet uncalculated millions of dollars with its announcement to buy a half-share in the oil field. He said that buying a half-share was the “inevitable consequence of short-sighted Government policies.” “Mr Kirk says that if the former Labour Government’s shares in British Petroleum had not been sold many years ago, the Government would already own part of Maui,” Mr Marshall said in a statement. “But he does not mention that the Government would have had to pay the very

substantial costs of exploration, much of it unsuccessful, incurred by B.P. in partnership with oil companies ovet a wide area of New Zealand since the early 19505. “Now, instead, we have the opportunity of buying into a field that has been amply explored, and proved as one of the world’s largest.” Mr Marshall continued: “Neither does he see that the half-share presently proposed is far in excess of the share the Government would have had as a shareholder in one of the Maui consortium’s three partners.” THE PRICE Mr Marshall said the price would be based on the value of assets and proved costs of exploration and development. The final figure has not been agreed upon. “I have no intention of jeopardising the Government’s negotiating position by disclosing the figure the Government has in mind. “Mr Kirk has asked the likely buy-in price of the Government’s half-share. He should know, however, that the price will not be paid out of revenue or taxation but as a capital investment from loan money.” Mr Marshall added: “It is not, therefore, a matter for which provision should have

.been made in the last Budget. The capital required would be raised in New Zealand and overseas, and amply secured by a rich self-sup-porting asset. “Far from being a drain on the taxpayer there would in due course be very large sums of taxation and royalties from the consortium — and we expect considerable profits from the half-share, according to the Government. This is a further illustration

of the way in which the Government, by negotiating firmly, is safeguarding New Zealand’s best interests. “The extent of the total national benefit from these and other elements will depend on the matters still under negotiation. This is why we will not be rushed into a premature conclusion of the negotiations, despite the pressure that the Opposition has been exerting,” said Mr Marshall.