Hydro dam price talks welcomed by Comalco

Press, 17 March 1987, Page 6

Hydro dam price talks welcomed by Comalco

By

BRENDON BURNS

in Wellington

Comalco last evening welcomed the prospect of direct talks with the Government over its future power price and its proposal to buy the Manapouri hydro dam.

The Prime Minister, Mr Lange, had yesterday received a letter from the company, which he said escalated paranoia into an art form.

He said it suggested Comalco was expecting the Government "to do them over” on the value of Manapouri, subsidise lhe power, and then legislate against the multinational company because of popular pressure.

"I don’t know whether the letter is an invitation to us to legislate but we are certainly disposed to talk constructively about a power price.-tyd, are disposed tb talk tively and rationally about

a proposal itself (to buy Manapouri) if the price was right.” Comalco’s power director, Kerry McDonald, who is in Wellington ftOm his company’s MdHiiurne office, ignored Mr Lange’s more flattiboyant comments and welcomed the prospect of direct “constructive and rational” talks.

“We would welcome it because the discussions we have had with officials over recent months have been anything but that.”

Mr Lange had been reluctant at his post-Cabinet news conference to be drawn on what was the right price for Comalco’s power.

He said price would have to be assessed on the basis of the value of the power, assurance of supply, and the prospect of sales from Comalco to the national grid if it bought Manapouri.

He declined to comment on whether the Government was prepared to legislate on the power price issue if it had not reached agreement by April 1, the deadline before the new Electricity Corporation takes over control of bulk electricity supply. But Mr Lange hinted darkly, and apparently in

jest, at the prospect of legislation, while his deputy, Mr Palmer, is overseas.

“Work out whether we could. Apply your mind to the Order Paper. Be aware of the fact that the Deputy Prime Minister is overseas so some of the restraints on Parliament might lessen a bit. That’s something for Comalco to start chatting about.” Earlier Mr Lange had said the power price issue could take quite some time to finalise.

He said Comalco’s direct approach to the Government had stated that it did not like paying any more for power. “Not even in a time of rising world prices for aluminium.”

But under the previous Government, Mr Lange said, the company had agreed to substantial power price increases at a time of lowering world prices.