Govt urged not to sign secret deals

Press, 10 April 1980, Page 10

Govt urged not to sign secret deals

Wellington reporter The Government has been called ,upon not to sign any secret deals with foreign smelting companies. The call comes from the Environmental and Conservation Organisations (E.C.0.), which is a loose-ly-knit body representing a wide range of small conservationist groups. E.C.O. is opposed to the signing of any power supply contracts for engeryintensive industries until the public has been provided with the chance to see and comment on a full evaluation of the implications of each contract. “We are concerned that the taxpayer will be required to pay a large 'national benefit subsidy’ so these companies can be sold electricity below cost,” said the chairman of E.C.O. (Dr I. Prior).

“The Government’s past negotiating record does not inspire confidence that they can negotiate a fair deal for New Zealand in

the face of cheaper electricity being available in Australia and in other parts of the world.” he said. Negotiations would be based on a temporary electricity surplus in the South Island. This surplus was equivalent to the amount of electricity needed to supply Comalco for two years and a half, spread over the eight years from 1978 to 1986. Yet to dispose of this surplus the Government was prepared to sign away power equivalent to 30 years’ supply to Comalco, spread over the 20 years from 1983 to 2000, Dr Prior said. “Selling more electricity than is surplus means that we must start building new power stations — especially the Clutha scheme, small hydro projects, and North Island coal and gas-burning stations — earlier than otherwise anticipated. “This means our power

bills will have to be again increased dramatically to pay for this accelerated construction programme,” he said. New Zealand did not need to sell resources at below cost to foreign companies to profit from its current electricity surplus, he said. “The Government and New Zealand stood to benefit from an open discussion of the relative benefits of proposed South Island developments.” Dr Prior said. “We have a right to know what kind of return, based on what assumptions. we can expect from the investment of public funds in supplying power to foreign or New Zealand companies,” he said.

“We demand to know, before, not after the important Government contractual commitments that have been entered into, as was the case with the am-monia-urea plant which has yet to find a home in Taranaki,” he said.