Second smelter defended

Press, 9 April 1980, Page 6

Second smelter defended

PA Wellington An assertion that another aluminium smelter anywhere in New Zealand would be an economic disaster in terms of the national interest was denied by the Minister of Trade and Industry (Mr Adams-Schneider) last evening. Professor Paul van Moeseke, professor of economics at the University of Otago, said on Monday that a study he had made showed that any ouch venture would cost more in imports than it would earn in foreign exchange. J

But Mr Adams-Schneider said that .the Institute of Economic Research had made similar, independent studies. “These do not support the conclusion that such a ven* ture would be disastrous for foreign trade or the national interest,” he said. “For one thing, Dr van Moeseke ..leaves out of account the fact that considerable downstream processing, dependent in many instances, on the use of hot metal, would be tied into any new or expanded aluminium smelter capacity,” Mr AdamoSchneider said.

“This would greatly enhance, the net national benefit in terms of foreignexchange earnings as well as employment and other factors,” he said. Mr Adams-Schneider asked that Dr Moeseke make his calculations available to the Department of Trade and Industry “to enable a more detailed analysis of his comments to be made.”