P.M. ‘sold a pup on Bahrain’

Press, 23 July 1980, Page 1

P.M. ‘sold a pup on Bahrain’

PA Wellington The Bahrain jointventure coolstore project would go down in history as the brainchild of a Prime Minister without commercial or international political sense, said the Leader of the Opposition (Mr Rowling) last evening. Mr Muldoon had been sold a pup, he said. He was commenting on the negotiations for the Bahrain Government to take over the New Zealand interest in the Gulf State venture. Mr Muldoon announced ’ yesterday that the activities of the BahrainNew Zealand Trading and Storage Company were being scaled down while talks on the offloading of , the 49 per cent New Zealand shareholding continued. When Mr Muldoon

opened the coolstore last October, the $ll million venture was touted as a wise investment in the future Singapore of the Arabian Gulf. But it has worked below capacity. Mr Rowling ; said . the company had been a white elephant from . the start, ahd the Labour Party had consistently spoken against it- ■ ' ■ “ “Milioris of dollars, and the time and effort of overseas officials, have been wasted bn a venture that was doomed from the start, while other worth-while possibilities have been neglected,” he said. “The history of the Bahrain venture shows very clearly that the Prime Minister was sold a pup right from the beginning, but refused to heed the experienced advice he was given . and blundered ahead,” Mr Rowling said.

Explaining the venture, Mr Muldoon said there had been important changes in the port structure and trading circumstances- in the Gulf. ■ Mr Muldoon apparently was referring to the fall in trade from the years of the Middle. East cargo boom, when the joint venture was first mooted, and new port development in the Arabian Gulf which has eased shipping congestion in the area.. . ; The sinking of the venture can to some extent be attributed to the introduction of refrigerated containers which have reduced the need fdr refrigeratecTstorage. Furthermore, - Shipping lines have found another way. into Saudi’ Arabia through the port of Jedda.