Pulp mill suggestion dismissed by P.M.

Press, 25 November 1981, Page 6

Pulp mill suggestion dismissed by P.M.

PA Oamaru Suggestions that the controversial Karioi pulp mill would close soon after the General Election were dismissed by the Prime Minister (Mr Muldoon) yesterday. The suggestions, by the Social Credit leader (Mr Beetham) were in the same category as an assertion by the Labour leader (Mr Rowling) that interest rates charged by Broadlands were about to rise, he said. Neither man had any basis on which to make his statement, Mr Muldoon said. “You are going to get a lot of those this week.” Mr Muldoon said he had no

knowledge of any impending rise in interest rates. In Dunedin, Mr Muldoon said that the Aramoana aluminium smelter consortium could have a new partner by Christmas. Addressing a rowdy election meeting, he read a letter from Fletcher-Challenge’s chief, Mr Hugh Fletcher, saying that substantial progress had been made in the search to find someone else to provide the required smelting technology after the withdrawal of Alusuisse. The letter, in accord with an undertaking by the company to keep Mr Muldoon in touch with developments, said: “. . . Technology pro-

posals have been received and are being evaluated. “Discussions on equity participation are proceeding with the same companies. “Although it is possible to separate equity and technology, there are advantages in having the same organisation supplying both. “We expect to announce a new partner before Christmas. “In spite of the present uncertain state of the aluminium market two further unsolicited expressions of interest have been received in the last week. “We still wish to develop a viable aluminium smelter at Aramoana,” the letter said.’