Mining, forestry ‘can be economic’

Press, 14 March 1987, Page 2

Mining, forestry ‘can be economic’

“West Coast mining and forestry can be economic,” the Minister of Transport, Mr Prebble told the conference. He said the figures showed that both could be profitable, provide good jobs and a secure, prosperous future provided that they were put on a sound commercial basis. “Subsidised industries cannot work because eventually the taxpyers’ cheque runs out of subsidy dollars.” Mr Prebble said that the harbour boards were therefore not alone in the need to promote actively a commercial approach. Many of the State trading organisations, such as the Post Office, State Coal Mines, Electricity Division, and the Forest Ser-

vice had suffered “from weaknesses in policies and the system which administers them.” “To be blunt, Huntly was staffed to produce more than two million tonnes of coal a year yet a market of less than one million tonnes was seen. “We have a coal stockpile going on to 600,000 tonnes — more than enough to cover the highway from Auckland to Wellington. State Coal has on occasion to employ gangs to hose down these stockpiles to prevent spontaneous combustion. “New Zealand has been employing 800 coalminers to do non-jobs at a cost of more than $122,000 a job. “In State forests, more

than 10,000 hectares have been planted at a cost of $1 million where it will be never be economic to cut down, the trees. “About $1 billion of taxpayers’ money has been lost,” said Mr Prebble. While the news media concentrated on the staff changes, the real situation was being ignored. “Government in New Zealand is too big, overstaffed, wasteful and inefficient. Our public servants are well-trained, professional, and hard working. All they need is real leadership and they will perform. “The Labour Government is finally taking measures that intelligent New Zealanders have known we needed for years,” Mr Prebble said.