Marsden Pt move ‘N.Z. Watergate’

Press, 7 June 1985, Page 19

Marsden Pt move ‘N.Z. Watergate’

PA Wellington The Government yesterday made a concerted attack on the former Minister of Energy, Mr Bill Birch, saying he had been involved in a cover-up.

During an hour-long debate on Ministerial replies to questions, Government members concentrated on attacking the “think big” projects and Mr Birch, saying his credibility had been destroyed.

The member for Franklin had been involved in a cover-up of the sort which was the hallmark of the National Party in government, said the Labour member for Ohariu, Mr Peter Dunne.

There had been an instruction at a Cabinet economic committee in December, 1981, that the

text of a document relating to the Marsden Point oil refinery expansion project should obscure as far as possible the implications that the Government would guarantee the project financially, he said.

That secret instruction was New Zealand’s Watergate affair, Mr Dunne said.

The Marsden Point oil refinery expansion would be the ultimate tribute to the failure of the “think big' strategy, he said. Mr Birch’s credibility had been “absolutely destroyed” through activities associated with that expansion.

“He has left New Zealand a legacy of a gigantic project which motorists’ money is being poured systematically into repaying it.” However, Mr Birch while moving the first private

member’s notice of motion, said it was easy to feel that the Labour Government was in deep trouble. “It shows up in the panicky way their marginal backbenchers start to break out in a sweat,” he said.

It was inevitable that Labour would attack major National Government projects now that the projects were at their most vulnerable.

“They are overlooking the fact that there are many projects today that are commissioned, operating, and contributing vast sums of foreign exchange earnings to the economy of this country,” Mr Birch said. The best example, he said, was the Motunui petrol plant, which was estimated to contribute about $4 billion in foreign exchange during its life.