Building of dam called madness

Press, 10 September 1984, Page 12

Building of dam called madness

PA Wellington The proposed Luggate dam was “economic madness” when a switch to natural gas in 100,000 North Island homes would yield as much electricity, said a Massey University economist, Mr Peter Read.

In a paper prepared for the Economic Summit Conference, Mr Read also said that a higher tariff for nonessential electricity use and a lower rate for essential use would encourage a switch to the cheaper natural gas. Where there was no alternative to electricitysuch as lighting, running the vacuum cleaner, and tele-vision-power charges could be halved. But for other uses of

electricity, such as waterheating or home heating, where other fuels could be used, charges could be doubled. The two tier tarriff would reduce the bills of households which used little electricity, and which were generally less well off.

Mr Read criticised the Minister of Energy, ■Mr Tizard, for committing the Government to the Luggate Dam, which he described as another smaller white elephant on the heels of the Clyde dam. He said that Luggate, followed by the Queensberry Dam, would perpetuate to near the end of the century the surplus of generating capacity with which the economy was lumbered.