Moves on cement ‘only modified’

Press, 15 August 1984, Page 36

Moves on cement ‘only modified’

Westport reporter Proposals to restructure the New Zealand cement industry have not been abandoned, only modified, according to the Commerce Commission. Mr D. J. Kerr, the commission’s executive officer, said from Wellington yesterday that the original public hearing into cement-indus-try pricing had been abandoned, but this did not mean an end to the proposed restructuring. Mr Kerr said the original hearing had been set down for later this month. However, the cement companies withdrew the terms of reference for their first restructuring proposal and have submitted a new modified plan. The plan is said to contain significant changes to the original proposals. It has not been released to the public yet. The main features of the original proposal were the closing of two of the country’s four cement works: Tarakohe in Golden Bay, and Burnside in Otago, would suffer.

The two cement manufacturers co-operated in draw-

ing up the proposal, which says the remaining two works at Portland and Westport would be able to fill the current demand. The proposed rationalisation would be in two stages, the first of which would be the closing of Burnside and Tarakohe by the end of this year. The second stage would be the building of a new works near Oamaru at a cost of more than SI7OM. In the meantime, the Buller County and Westport Borough Councils will make a joint submission on the proposed restructuring. Among the local bodies’ concerns are the effects of restructuring on the Cape Foulwind works and the effects of new works at Oamaru on the local cement industry.

There has also been concern expressed about the suggestion from the Labourers’ Union that redundant Tarakohe workers be employed at Cape Foulwind.

Buller already has a major unemployment problem and this would not be improved if Tarakohe workers filled new jobs at an expanded Cape Foulwind works.