Second smelter
Sir,—Dr Bertram of the Coalition for Open Government says (“The Press,” October 27) that supplying smelting projects with power would give an internal rate of return of less than 2.5 per cent over 15 years and over 30 years a zero rate of return. We are told that the major reason Alusuisse pulled out of the second smelter consortium was that the power price was too high. It may be too high for profitable smelting but it is clearly too low to cover the costs of new construction. Why should ordinary New Zealanders be faced with either increased taxes to fund the massive, accelerated power construction programme needed or higher electricity charges or a combination of both in order that a multinational consortium can make a handsome profit? Further, I understand that the Gfyern-
ment requires irrigation schemes to show a real rate of return of 15 per cent. As both hydro-power generation and irrigation are river uses why the difference in acceptable rate of return?—Yours, etc., HEATHER J. AIM. October 28, 1981.
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Press, 31 October 1981, Page 14
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175Second smelter Press, 31 October 1981, Page 14
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