Govt loses its ‘fall-back’ on Clyde dam issue

Press, 30 June 1982, Page 1

Govt loses its ‘fall-back’ on Clyde dam issue

Parliamentary reporter The high dam site at Clyde is likely to be shelved for an unknown period, and several hundred workers be laid off, because - the Government finds it can no longer use the “fall-back” position it has relied upon for the last six years. Advice from the Controller and Auditor-General yesterday to the Government was that it could not proceed with the high dam beyond this point without the authority of Parliament. The new Minister of Works and Development (Mr Friedlander) was asked yesterday why the Auditor-General had given this advice. Mr Friedlander said that it was because it was not feasible for the Government to proceed with a high dam at Clyde unless the water rights were secure. There was no guarantee that the Government would continue to retain water rights for a high dam, he said, and so it would be irresponsible to continue to spend public moneys in the hope that eventually the appropriate water right would be confirmed. The Crown held both construction and operating water rights, but the legal basis of the Planning Tribunal decision confirming

the latter had been contested successfully in the High Court in Christchurch. It had' always been the “fall-back” position of the Government that if it was not . successful in getting secure water rights it could pass legislation overcoming the problem, Mr Friedlander said. But the decision by the two Opposition parties, Labour and Social Credit, and the Government member for Hamilton West, Mr M. J. Minogue, to oppose such legislation in Parliament meant the Government had lost its “fall-back” position. “In this situation the Government has no option but to wind down the project,” he said. This would have to be by the end of July if no water right was secure by then. Mr Friedlander said that the Government was not to blame for the present situation because it had always acted on the basis that it could fall back on Parliament to pass legislation. Seen in this light, the Government has never had a “secure” water right that was not subject to possible appeal and reversal. It has held a water right since 1977 when the National Water and Soil Conservation Authority approved a water right for a

high dam only, but this has always been subject' to appeal or review, and so has never been “secure.” The security was provided by the Government’s confidence that it had a majority in Parliament that could override the planning arid appeal process if the water right did not seem secure. Ever since it was granted the water right in 1977, the Government has acted at Clyde as if it would be allowed to build a high dam, approved through the planning process or required by legislation. Now the AuditorGeneral has told the Government that in the circumstances it may not build a high dam. Whether the Government was entitled to make such an assumption was a matter for debate, he said. ■ A full inquiry into the impasse at Clyde, and what led to it has already been called for by the Labour member for Christchurch Central, Mr G. W. R. Palmer. Such an inquiry could determine if the Government was entitled to make its assumption, quite ■ apart from whether the assumption had proved to be right or wrong in the event. According to the NZPA, sixty workmen would be the first to lose their jobs, at the

Clyde high dam site, the Government said yesterday, and 80 more would follow if a work restart was delayed. A total of 360 Ministry of Works and Development and other jobs are on the line. The 60 Ministry men will go from mid-July, and there appears to be no alternative work for them, Mr Friedlander said. He still hoped that the Opposition parties and Mr Minogue would let common sense prevail, and legislation be passed so that the project could proceed with legal sanction. But if the Government still seems certain in mid July to suffer defeat on the legislation, at least 60 men will then be declared redundant. If a restart on the dam site looks unlikely until early in 1983, a further 80 men would be made redundant by the end of September this year, according to Mr Friedlander. If the Government makes a decision immediately to Swork not relevant to a dam, in the expectation that it would not restart before late 1983, redundancy would probably apply to a total 360 people. Mr Friedlander said there were 57 Ministry staff, and 245 Ministry wage workers on the site.

“These are the only people affected by short-term interruptions to the site work. A long-term stoppage of the Clutha works would affect the total personnel numbering up to 623, including both contractors and Ministry personnel.” Mr Friedlander said that he would visit the site to-: morrow, when discussions would take place about the 60 men to be made redundant. “I will do everything I can to safeguard the interests of the Ministry of Works personnel and any other people employed on work associated with the project,” he said. Redundancy payments for the 60 workers would cost $300,000. Mr Friedlander said. Alternatively, if they were kept on without work their employment would cost $72,000 a month. He said that suggestions of alternative employment opportunities on irrigation schemes were impractical. “Opportunities for additional employment in rebuilding projects from Cromwell are very limited. There are, in fact, no feasible alternative employment options.”

Mr Friedlander said that the Cabinet had , agreed tonwork’s continuing on the site until the Clutha River diversion work was completed, and the coffer, or base, dam made secure.

“This will effectively delay for one month any programme implementing the laying off of staff." he said.

If the construction organisation was dismantled and built up again in 12 months time it would cost an extra $8 million. “The costs of carrying these 360 people ineffectively for 1.2 months is estimated at s9million;" . , j Changes.', in ; costs due to escalate, which would result from a 12 months, ’delay, were likely to amount to a further $BO million over the whole project, he said.

Mr Friedlander said that the dam builders — the joint Christchurch-West German venture of Williamson-Zublin — had agreed to extend the validity date of< their $lO2 million tender to September 30. and a slight increase in cost had “been indicated as possible.” The Planning Tribunal will meet in Wellington on August 2 to decide on judicial problems over the water right for the Clyde high dam. A spokesman said yesterday that it was not clear how long the hearing would last but it would probably be less than a week. The Labour member for Dunedin Central. Mr B. P. MacDonelL confirmed yesterday that he would vote with his party against the proposed Clyde . high dam empowering legislation in spite of yesterday's announcement of a possible reprieve for the Aramoana aluminium smelter. '.