Methanol scrutiny call

Press, 20 February 1980, Page 6

Methanol scrutiny call

PA Wellington New Zealand taxpayers should “pay pretty close attention” to methanol project developments, said the Leader of the Opposition (Mr Rowling) yesterday. “I am concerned that we are likely to be sold out,” he said.

Mr Rowling said after a meeting of Labour’s shadow Cabinet that the Prime Minister (Mr Muldoon) had been “fairly blatant” about his intention to use taxpayers’ money for the initial methanol project, with the aim of selling it off to private interests when it ftjund its feet;

‘■‘There should hot be any selling off to the friends of the: Government when the industry comes of age,” he said.

Mr Rowling said that there was a lesson for New Zealand from the experience in Australia after the minerals explosion of the 19605. This produced useful dividends but created ■ capital repatriation of such magnitude that it exceeded the intake of new capital Australia needed.

Mr Muldoon was “waxing eloquent as a sort of latterday socialist” on Petrocorp, Mr Rowling said, but if the rules were not carefully drawn from the start, Alberta Gas — Petrocorp’s partner in the methanol project — would exert increasing influence and “come in virtually through the back door.” The Labour Party wanted significant participation by Petrocorp because it was the only body which could, in the collective sense, ' repre-

sent the people of New Zealand. Petrocorp should not be used in a transitory role, with taxpayers’ money poured in one end and profits flowing out into private hands at the other.

Mr Rowling said that there should be a combination of public investment, investment by the New Zealand private sector, and an element of overseas capital participa j tion, with the New Zealand public and private sector always in control.

He said that he had not seen all the details of the methanol proposals under consideration by the Government. but had seen “a few outraged private-enterprise representatives leaping up and down attacking a privateenterprise Government,"