Govt M.P. backs S.I.

Press, 3 August 1985, Page 1

Govt M.P. backs S.I.

Wellington reporter South Island Government members of Parliament have been lobbying in favour of a South Island tariff differential for electricity. A copy of a memorandum circulated by Mr Clive Matthewson (Lab., Dunedin West) to his fellow members has been published by the Chief Opposition Whip, Mr Don McKinnon, to embarrass the Government. Mr Matthewson said in a circular of May 16 that his memo in favour of the power differential was based on a study by the Canterbury, Otago and Southland manufacturers’ associations and the South Island Local Bodies’ Association. “I believe there is a strong logical argument for increasing the current differential,” he said. “As well as that, however, I believe it would be of enormous benefit in creating confidence in the South Island, and would provide a very large political pay-off with a virtually negligible reaction from the North Island. “In the meantime, I have sought departmental responses to the report, but I think we should get organised on this issue,” Mr Matthewson said. Mr McKinnon said this plea for a South Island power differential was an example of what South Island members of Parliament wanted and what the Labour Government was not prepared to see that they got.

It was a real example of the dissent in the Government caucus between South Island members and the rest, he said.