Release of data a ‘breach of trust’

Press, 8 May 1980, Page 20

Release of data a ‘breach of trust’

The Government cannot release all its information on a proposed second aluminium smelter, according to the Minister of Trade and Industry (Mr Adams-Schnei-der). Mr Adams-Schneider, who was asked to comment on Dr Peet’s article, gave two reasons for this. The first was that the Government

had been supplied with detailed costings by several competing interests and to release the data would breach the trust the ■ companies had shown, he said.

The second reason was that if the Government were to release the results of its own data checking and the details of its own economic analysis, it would be giving

away negotiating information and weakening the Government’s position. Mr Adams-Schneider said that Dr Peet was right to say that the basic data must be correct for such economic assessments, and said also that officials of the Department of Trade and Industry had cross-checked the prices between proposals. The offi-

cials had also checked international prices against figures provided by consultants and local prices quoted with actual charges (such as labour costs checked with the Department of Labour). Conventional modern techniques of evaluation and been used, he said. “There should be no argu-

ment over the cost-benefit framework using discounted cash flows for each year ol the project’s operation. Foreign exchange flows and resources costs are considered in exactly the same way the Government considers all projects,” said Mr Adams-Schneider.

“My officials use the methods recommended by the O.E.C.D. and U.N.1.D.0. applied to the New Zealand situation. Using this criterion, we will accept only projects which provide a good economic rate of return to New Zealand,” he said.