Liabilities rise by millions

Press, 25 September 1984, Page 17

Liabilities rise by millions

From

OLIVER RIDDELL

in Wellington Details of some of the expected costs to New Zealand of the 20 per cent currency devaluation in late July have been announced by the Government. The Railways Corporation expects that the resulting increase in its capital liability will be about $37 million. A more complicated situation applied to the

Shipping Corporation, but the increase in its liabilities will be about $23.7 million and more will be known when its annual accounts for the year to August 31 are tabled in Parliament. There has also been an impact on the cost of some of the "major energy projects. The extra cost to the Marsden Point refinery expansion will be about $l5 million.

Suppliers of equipment for liquefied petroleum gas and compressed natural gas conversion kits estimate, depending on the overseas sources of components and the degree of local content, that costs may increase up to 20 per cent. More accurate estimates will not be available until suppliers are invoiced for their post-devaluation orders. But the 20 per cent de-

valuation may not increase the cost of the synthetic petrol plant at Motunui. The project is being financed by United States dollar loans, the currency in which the project costs are controlled and reported. Savings will accrue from the high percentage of project costs still to be spent within New Zealand, but these savings may not be important in terms of the total project cost.