Labour Mobil policy 'makes no sense’

Press, 17 November 1981, Page 3

Labour Mobil policy 'makes no sense’

Wellington reporter The Labour Party had not grasped the significance of the oil crisis when it threatened deferment of the synthetic petrol project, the Minister of Energy (Mr Birch) said yesterday. He was commenting on the statement of the Leader of the Opposition (Mr Rowling) at the week-end that the proposed Mobil plant could be delayed for up to 10 years. “At the time when the cost of oil imports to New Zealand is $l5OO million a year, and rising, deferment would seriously set back the nation’s progress in energy self-sufficiency,” Mr Birch said. “The Mobil plant alone will contribute 20 per cent to our self-sufficiency in transport fuels. It is a major component in the Government’s policy for achieving 50 per cent self-sufficiency by 1987. “It makes no sense to leave resources in the ground and continue to rely on the

Middle East Arabs for our fuel,” he said. Mr Birch said that Labour’s rejection of the synthetic petrol project would put economic recovery back by “many years.” ' “Neither does Labour appear to understand that proceeding with the project is not at the expense of traditional New Zealand industries. Arrangements for funding the project are already well advanced and can readily be achieved through overseas borrowing. “The project has a positive foreign-exchange earning

ability from the time of full commissioning because it will save New Zealand from having to import 690,000 tonnes of petrol a year. “Net foreign exchange earnings over the life of the project — after repayment of all capital and interest — is $3OOO million. This sum will rise as oil prices rise. “The attitude of the opposition parties to the synthetic petrol project would take New’ Zealand back into the 1880 s rather than forward through the 1980 s,” said Mr Birch.