‘Govt broke vow on S.I. power’

Press, 15 November 1984, Page 17

‘Govt broke vow on S.I. power’

PA Wellington The 22 per cent electricity increase for South Island consumers announced in the Budget was a blatant breach of faith, said National’s spokesman on energy, Mr Bill Birch. He said that the Prime Minister, Mr Lange, promised in Oamaru on November l last year that “a Labour Government would reduce all electricity charges to South Island consumers 25 per cent”. Mr Lange said then that the reduction would apply to all consumers, including domestic, Mr Birch said.

He said that that was not a subsidy, but simply a reflection of the fact that power was generated more

cheaply in the South Eland than the North Island. Making use of that energy resource and combining it with an effective transport system and guaranteed access to health and education facilities would be the basis of Labour’s policy to stop the northern drift of population, Mr Lange said. Mr Birch said that South Island consumers were entitled to feel deceived. “The Labour Government has not only broken its promise to reduce power to South Islanders but it is about to remove concessions that have been so important in encouraging growth and employment in the South Island in recent years,” he said.