Govt tougher on Comalco

Press, 1 November 1977, Page 2

Govt tougher on Comalco

The Government is considering introducing legislation to force Comalco to pay more for the electricity it uses to run its aluminium smelter at Bluff, reports the Press Association.

The Prime Minister (Mr Muldoon) said yesterday that he had asked officials to prepare a report to be put before the Cabinet economic committee today on legislation to over-ride the existing agreement between the Government and Comalco.

The agreement did not take into account the present high price of elec= tricity. The Government is believed to have asked for a 600 per cent rise with Comalco offering 150 per cent.

Mr Muldoon declined to give any figures but said, “We are talking about increased costs which could be in the order of SIM a month.”

Legislation may have to be introduced because there was no sign of agreement being reached. Comalco’s offer was not a fair one.

If legislation was introduced, it would be brought in within the next six weeks.

“The principle involved is that the Government of the day has a duty towards the people that is paramount as regards national resources,” said Mr Muldoon. He was sure the Government would have the support of the Labour Party in any action it might take.