Marsden delay cost

Press, 26 November 1982, Page 6

Marsden delay cost

PA Wellington Every month’s delay in expanding the Marsden Point refinery will cost $23 million in imported product and New Zealand input into the project, says the Minister of Energy, Mr Birch. He said he now believed delays were .almost inevitable.

His comments came after a warning by the chairman of the New Zealand Refining Company, Mr R. A. Broughton, that work on the project was falling behind, and that resulting cost increases were unavoidable. The extra costs would mean dearer petrol.

Mr Birch said that ordinary New Zealanders, particularly motorists, would bear the brunt of the increased costs and the effect of the

delays. He appealed for improved site productivity and co-operation. Riggers on the expansion programme and the.maintenance shut-down, walked off the site yesterday and are reported to be planning to stay out until Tuesday. The strike, by about 88 riggers, has halted the use of cranes and is likely to compound the delays. The workers took the action after a rigger, who had arrived for a job, was stopped from going on to the plant. If the strike continues into next week, other workers may have to be suspended as work runs out. Mr Broughton said the lack of skilled tradesmen was the main reason for delays.

The project contractor, the consortium Badger-Chiyoda JV2, was still negotiating with the unions and the Federation of Labour on an agreement on the need to import skilled overseas tradesmen to supplement the New Zealand work-force. : The consortium had first sought union agreement urgently in June. Mr Broughton said the consortium was unable to employ several hundred New Zealand workers until the overseas tradesmen were recruited. JV2 wants to hire 50 British boilermakers and a number of riggers. Union sources yesterday reaffirmed their stance that there are people in New Zealand with qualifications to .do the work.