Jobs from energy projects for 20 years

Press, 11 August 1980, Page 16

Jobs from energy projects for 20 years

Comment from the Capital

By

PHILIP WORTHINGTON

Recently-expressed concern by the Canterbury Boilermakers’ Union that the big energy development projects now in train will make insufficient use of New Zealand labour and skills are groundless. The union, quite understandably wants assurances that the work will be there for its members, particularly in light of the announcement that New Zealand’s , heavy engineering industry suffered a 20 per cent decline in the last 12 months. But fears that much of the work will go to overseas contractors to the detriment of local enterprise and labour cannot withstand close scrutiny. First, there is an undertaking by .the Minister of Energy aqd of National Development (Mr Birch) that the Government “will certainly continue to emphasise the importance” of making the greatest use possible of New Zealand input in the projects. Second, the Government is looking to the projects as job providers during the time of construction — a point consistently hammered home as contracts are let or projects announced. Third, because of the magnitude of the development programme, every available source of skills, plant, and labour will be needed to meet the time-tables the Government has put forward.

-Spread evenly over the next two decades, the energy projects will provide a long

cycle of greater construction activity as well as leading to new industries which should continue the need for a high level of building and contracting activity. A recent breakdown of the projects by Mr Birch indicates the size and timing of the projects region by region. Northland: S4SOM in two major projects, of which S3SOM worth of tenders for the refinery will-be called in March, next year,- and another SIOOM will’be spent on the New Zealand .Forest Products pulp mill. , South Auckland: plans. for Nevv Zealand Steel' Ltd’s expansion will result in’ SBOOM worth of work and materials being required; ancilliary coal .. developments . (N.Z. Steel will require - 10.0,000 tonnes ; to 900,000 tonnes) will '.be worth another $100M;.. another thermal power station about SSOOM, plus- new gas pipelines of which <■ tenders for the Huntly-Auckla’nd -. line have been called, the others being Palmerston North to Napier, Northland to - Whanga’rei, and new lines to Kawerau. Taranaki: stand alone methanol plant, SISOM on which a start will be made next year; synthetic fuel plant, SSOOM, due for commissioning in 1985; liquid petroleum gas extraction and bulk distribution project, SIOOM, which is proceeding; ammonia urea plant (awaiting planning approval), $8OM; Petrochemical Industries (by the late 1980’s). SSOOM; Maui B, S6OOM.

Nelson: the 60m C.S.R.Baigent pulp mill. West Coast: coal developments for exports reaching two million tonnes a year, including steaming coal.

Otago-Southland: Comalco expansion, S2OOM; the second smelter, S6SOM; possible coal processing for the production of diesel and jet fuels, S2OOOM (a decision is expected within the next three years).

In addition there are the four- major additions to the Clutha hydro electricity generating capacity, the first of which (the 430 megawatt Clyde dam) will be providing power in April, 1988. This wide range of projects shows that the contracting industry has the certainty of expansion locally, allied with which there is the increasing market in the Pacific and Asia for private contracting and consulting services, to" developing nations. New Zealand companies are already hoisting their flags -on projects in Australia, Papua New Guinea, Indonesia, the Philippines, Thailand, Chile, and Mexico. Internally, the energy programme will need a more effective liaison between the private and public sectors to make the greatest possible use of New Zealand labour and skills.

A major step towards this greater liaison was taken last: year in the formation of the advisory committee on major works. This group collates and disseminates information on major development proposals and pro-

vides an avenue for the industry to discuss with ministers the planning and construction of large projects. Full details of the content and timing of major projects are given to this committee, both to achieve a greater awareness of requirements in the industry and to achieve a higher level of coordination.

Representatation on this committee is drawn from the Master Builders’ Federation, the engineering profession, the heavy engineering industry, the Federation of Labour, and the Contractors’ Federation.

So far, according to Mr Birch, the group has proved of great value in highlighting possible bottlenecks to the construction programme. In particular, it has focussed on training programmes to provide the necessary skills and the productivity of the New Zealand construction industry. ’

It is inevitable that the dictates of specialist expertise and possibly even manpower will require overseas involvement in the programme. But the magnitude of the projects planned for the next 20 years will require as economic necessity the involvement of all available local labour. The political attraction of reducing unemployment guarantees that this course will be followed.