THE PRESS MONDAY, JUNE 11, 1979. Closing of Marsden B

Press, 11 June 1979, Page 16

THE PRESS MONDAY, JUNE 11, 1979. Closing of Marsden B

It is more sensible to stop the generation of electricity from the Marsden B power station than to use costly imported oil to fuel it At the moment the country does not need the electricity and can ill afford the oil even if it can be obtained. But it is still disturbing to think of a power station not a decade old which will not be used again at least for another decade. To some extent it is a mark of how greatly the world energy scene has changed in the 19705: but the lesson should really be about how much careful thought and flexibility should be given to energy programmes.

The reduced demand for electricity has been caused partly by the losses through emigration, partly by the slowing of economic activity, and partly by the higher price of electricity. The reduced forecasts for power demand cited by the acting Minister of Energy, Mr Templeton, in justification for the closing, make depressing reading. It may be that the forecasts were much too high in the first place and the reductions make the picture more realistic. If that is the case it was a serious miscalculation. But it also seems that the reduced forecasts might indicate that the country is in for a long, bleak period.

Whenever the Government gets around to outlining an overdue energy policy, the place of hydro-electricity in the future development of New Zealand should receive attention. The argument used by many economists is that the price of electricity should rise as the prices of other forms of energy rise so that a big drain on the resource of electricity does not occur. Yet one of the difficulties New Zealand has in selling manufactured goods overseas is price. Being competitive has such importance in exporting that without it a firm might as well give up. New Zealand is not richly endowed with resources, but it is with hydroelectricity. It would be utter foolishness to price New Zealand goods off world markets through internal pricing mechanisms. That is not to say that the country should allow itself to sell its heritage for an early mess of potage but it is to say that the resources the country has should be used wisely. A clear statement is needed of the Government’s intentions so that every citizen can see how he or she can fit into it. A reasonable policy would probably bring more sorely needed hope to the country than any other single action.