P.M.’s figures ‘differ’

Press, 29 May 1982, Page 6

P.M.’s figures ‘differ’

PA Wellington Figures used by the Prime Minister (Mr Muldoon) to dismiss the option of building a low dam at Clyde differ markedly from the figures presented to a planning tribunal by an officer from the Electricity Division of the Ministry of Energy. The discrepancies were alleged yesterday by the Well-ington-based Coalition for Open Government, and later confirmed by an Electricity Division officer. Mr Muldoon said on Thursday that the high dam project was $l5O million cheaper than the alternative of building two low dams, and the low dam option would make power 30 per cent more expensive.

A coalition spokesman, Mr Keith Johnston, said yesterday that the figures presented to the planning tribunal hearing on application for water rights in August. 1980,. indicated the high dam would be $7O million cheaper, and the low dam option would make power about 8 per cent more expensive.

“Either the figures have been massaged upwards, or they have escalated rapidly," Mr Johnston said. “That’s a lot of inflation in two years.” The figures given ~ to the

tribunal came from Mr Mike Hewlett, an officer with the Electricity Division in Wellington.

They showed that the high dam scheme option — the one that is being proceeded with — put the cost of the Clutha development at $l2OB million, as opposed to the low-dam scheme option of $1278 million.

The cost of the high dam power was measured at 3.63 c a kilowatt hour, and that of the low' dam at 3.96 c, a difference of 0.33 c or about 8 per cent.

Mr Hewlett yesterday confirmed the figures he gave to the tribunal, but said he could not explain where Mr Muldoon’s had come from. He said his own had been presented to the tribunal, in March 1980 dollars, after consultation between the Electricity Division and the Ministry of Works and Development. Mr Muldoon’s figures had not come from his area, Mr Hewlett said.

Inflation bn the capital cost of the project was running at about 20 per cent per annum, which would certainly have put the cost difference between the two options over the $lOO million mark, but not to .the extent of a $l5O million difference, Mr Hewlett said.-