Socred call for ending of Motunui project

Press, 9 February 1983, Page 2

Socred call for ending of Motunui project

PA Wellington Social Credit has called on the Government to "cut the ■nation's losses" and cancel the Motunui gas-10-gasoline project. Money saved by cancelling the plans should be invested in natural gas reticulation in the South Island: a "beefed up" compressed natural gas conversion programme; diesel substitution by gas. coal, electricity, and vegetable oils; and the commercial production of ethanol from crops and wood. Social Credit said yesterday. The party's energy spokesman. Mrs Patricia' Wojcik, said she supported remarks by a United States energy consultant. Mr Pincas Jawetz, in Texas last week, which criticised the economic. technical and long-term-planning aspects of the plant. The Minister of Energy. Mr Birch, said last week that Mr Jawetz had doubtful credentials, a bias towards renewable fuels, and that his ideas w’ould create economic distortions and penalties.

Mrs Wojcik said that confirmation of the views of Mr Jawetz was coming from sources including the oil companies. Shell. BP and Todd, which declined a 24 per cent share of the plant when the offer was made by the Government.

She said the capital costs of the plant had risen in an alarming wav. It was priced at $3OO million in 1979. $5OO million in 1980. and $960 million in 1981. By 1982, loans close to $3OOO million had had to be raised before the financial backers would agree to let work start, she said.

Mrs Wojcik said that the tax-payer was liable for 75 per cent of the risk. "If the New Zealand retail price of petrol is maintained to cover the synthetic petrol cost while oil prices continue to fall sharplj’ overseas, the consequences to our export industries will be horrific." she said.

"How can they possibly compete on international markets if that sort of handicap is imposed on them?"