P.M. expects firm Socred

Press, 19 August 1982, Page 1

P.M. expects firm Socred

PA Wellington The Government expected Social Credit to stick to its agreement on the Clyde high dam, said the Prime Minister (Mr Muldoon) last evening. Reacting to threats by Social Credit’s leader (Mr Beetham), Mr Muldoon said “we will carry out our undertaking and we expect him to carry out his.” Earlier yesterday, Mr Beetham said that, the Government was putting the dam deal in danger, by refusing to fund a feasibility study into proposals for saving the Patea freezing works, and by the apparent lack of funds in the Budget for irrigation schemes associated with the high dam. The feasibility study and simultaneous development of work on one of several irrigation schemes were among conditions made by the league in return for an agreement to support legislation allowing construction work on the high dam to continue. Government sources said that Cabinet was considering allocating funds for a Patea study. Mr Beetham said, “The agreement is quite clear and I await an early announcement of the Government’s intention. It is up to the Government to demonstrate that it intends keeping its

side of the agreement with Social Credit.”

In Dunedin last evening the Minister of Energy (Mr Birch) denied that the Government had delayed a decision on the Patea question. The private sector had to contribute ideas for the Government to consider, he said. Maritime Pacific had decided to spend $50,000 on a feasibility study into the possibility of Patea’s staying as a freezing works. “That. study should go ahead, and, if I am satisfied, I will put a proposition to the Government,” Mr Birch said. Mr Beetham said he would also discuss with the ment “the apparent lack of provision in the Estimates for construction work on the first of, the Central Otago irrigation schemes.” The agreement was that, simultaneously with construction work on the Clyde dam itself, work would begin on the irrigation scheme for the Earnscleugh Flats.