Govt committed to ‘energy dumping’ — group

Press, 12 October 1981, Page 18

Govt committed to ‘energy dumping’ — group

PA Wellington New Zealand will build an “electricity mountain” much like the European Economic Community’s “butter mountain,” if the Clutha dams are not stopped, according to the Coalition for Open Government. The "collapse" of the Aramoana aluminium smelter project had again show up the Government's commitment to "energy dumping,” said a coalition spokesman, Dr Geoffrey Bertram, a university lecturer.

“The proposed build-up of electricity-supplying capacity on the Clutha and elsewhere in New Zealand is directly analagous to the E.E.C.’s butter mountain. “In Europe, domestic consumers pay high prices to keep inefficient farmers in business. The surplus agricultural production which results is then unloaded on to world markets at below cost.. "In New Zealand, if the Clutha hydro dam programme is carried on in order to supply the smelter, ventures, consumers

would be subsidising power to sell at below the cost of production,” he said. "The myth that we had a "surplus” of electricity which gave us a comparative advantage on the world market was exploded last year." ' Now it had ’ been shown that if the country had to start from scratch to build' new power stations to supply big overseas investors like Alusuisse. New Zealand could not afford to sell electricity at a price that would suit it or any other of the maiy aluminium producers."