Otago leaders seek cheap smelter power

Press, 17 April 1982, Page 6

Otago leaders seek cheap smelter power

PA Dunedin Otago local-body leaders have asked the Government to keep the electricity price for the proposed aluminium smelter- at Aramoana low enough for the project to proceed. They are worried that the power proce the Government seeks may be too high for South Pacific Aluminium’s proposed partner, the French company, Pechiney. The former partner, alusuisse, withdrew from the deal last year, giving the power price as the reason.

The Otago Council yesterday sent a telegram to the Prime . Minister . (Mr Muldoon) saying that power from the Clutha river hydroelectricity project had to be used in Otago. The council’s chairman, Mr J. Scanlon, said that the Government had been promosed a “storm of protest” from Otago people if electricity generated in the province was diverted to industries elsewhere. “The alarming outward drift of skilled labout is now a matter for widespread con-

cern.” he said. “Much of the recent and welcome privatesector activity in this region has been based on the firm expectation of the smelter project.” Mr Scanlon said that “special regional circumstances” in Otago provided grounds for a more generous power-price discount than would be the case anywhere else in New Zealand.’ Time was running out for. the smelter project, which had wider support in Otago than might be apparent from news reports and discussion.