‘Explanation owed’ on big projects

Press, 10 February 1982, Page 6

‘Explanation owed’ on big projects

The leader of the Social Credit Political League jMr Beetham) has called lor ah explanation of recent comments made by Government Ministers in relation to two big energy projects. Mr Beetham said yesterday that the Minister of Finance (Mr Muldoon) and the Minister of Energy (Mr Birch) owed the public an explanation before they signed the agreement on Friday with Mobil for the synthetic petrol plant. „ “It seems a little strange that, in view of Mr Muldoon’s repeated claims that inflation is coming down, he is preparing to enter an agreement based on an ongoing inflation rate of 15 per cent."’Mr Beetham said. "What has changed since the election? The public is entitled to know. Is the Gov-

ernment no longer confident that it can, in fact, bring our inflation rate under control if it is prepared .to enter an agreement that has built into it massive escalation provisions because of an unabated rate of inflation?

"Some explaining is also required over the Pelralgas methanol plant. I am a little curious as to the reasoning behind the statement by Mr Birch that sufficient finance has to be borrowed overseas to allow for 'significant' devaluation of the New Zealand dollar. "This comes as somewhat of a surprise, particularly when the Prime Minister has so recently roundly criticised economists and others for suggesting a devaluation was necessary,’’ said Mr Beetham.’’