‘Smelter not viable’

Press, 18 November 1981, Page 6

‘Smelter not viable’

NZPA political reporter Dunedin The proposed Aramoana aluminium smelter was not a “viable” use of New Zealand’s resources, said the leader of the Labour Party (Mr Rowling) last evening. In a blunt message to the people of Dunedin, a traditional Labour stronghold, Mr Rowling said, “I do not believe that the smelter project will be proceeded with for several years, if at all.” Mr Rowling’s unequivocal rejection ■ of the delayed smelter project, which is a key part of National’s growth strategy, got a warm reception from the crowd of about 1600 in the Dunedin Town Hall. He was cheered several times as he made clear Labour’s objections to the project and to other projects in the * Government’s "think big”.energy.policy, _• . '

Mr Rowling said that. he could understand how people in the Dunedin area might have had their hopes raised when they were told that an aluminium smelter would be built in the region. “But those hopes were raised on what were at best pretty flimsy grounds,” he said. . .. ; . The overseas principal, Alusuisse, “suddenly packed up their tucker box and they were gone. . ... “Now as the world price of aluminium becomes increasingly uncertain, : sb - do the remaining principals in that company (Fletcher-Challenge and Gove Aluminium) become increasingly cautious and unsure,” Mr Rowling said. They were certainly show- . ing.- much greater concern and caution about their

shareholders’, funds than the Prime Minister. (Mr Muldoon) was showing over taxpayers’ money, he said. The 1000 jobs'the smelter would create at a cost of $2 billion was about the same as the number of jobs lost in Dunedin by the closing of the Mosgiel woollen ’Mill. “Yet the interesting thing is that when Mosgiel had its back to the'wall this government never raised a finger,” Mr Rowling told the cheering crowd. This region of Otago needs development which is more certain, more viable, and certainly which gives a better, a surer, more lasting return ; than this particular fly-by-night operation.”. .. „ . Mr Rowling was heckled, several times from the audience but his remarks generally . seemed-, to strike, a ■mponsive.nole.i -