POLITICAL OUTLOOK

Taupo Times, Volume XIV, Issue 49, 24 June 1965, Page 3

POLITICAL OUTLOOK

"Coal before atoms" is likely to be the theme in New Zealand power generation in the immediate years to corne, no matter which party holds power. Views held by the Government about the best use for New Zealand's massive deposits of unwanted coal were confirmed in Parliament last week by the former Minister of Electricity and now deputy leader of the Opposition, Mr Watt, when he said that the use of bigger generations, as proven overseas, would lower the unit cost of electricity generated with coal. Mr Watt also said that a large coal-generated power plant on the West Coast of the South Island would solve a lot of problems, even though it might require another Cook Straight power cable.

r> 7C ri What has happened to the Ministry of Fnel and Power, which was one of the strongest planks of the National Party policy last year? Mr Watt wants to know. He might even feel so strongly about it that he will bring down his own private Bill on the subject — just to shake along those Government members who may have suffered a change of mind.

It is understood that "the Fuel and Power Bill was prepared last year, but that after some behind-the-scenes confrontations it was allowed to die quietly. Certainly there is nothing moving on the subject at the moment, though the position is just as serious as regards competing forms of energy for the production of power. Mr Watt believes that a single Ministry, able to examine and adjudicate on the

merits of competing forms of energy without bias or favour, is exactly what is needed. This was the view of National Party leaders a short time ago. It was even thought that the Ministry would be set up within a year, and that Mr Shand would probably be the Min--ister concerned. But what happened in the interim? Why was the draft Bill not proceeded with? One persistent rumour which should be dealt with one way or the other is that the holding-over of the Bill was entirely due to pressure by oil interests. If this is not so, someone in authority should say it — and should say why Government policy was disregarded without apparent reason.

* * * A supplementary Defence Estimate which may be close to £5 million is already being written. Though the Defence vote in the estimates just tabled in Parliament was the highest on record at £40 million, this figure was referred to recently as a "pencilled-in" one. Merely for maintaining forces in South-East Asia, the present estimates require £1,821,300. To this will be added the conserva-tively-estimated £200,000 a year needed to maintain the 161st Battery, 16th Field Reglment in South Vietnam. The "pay and allowances" figures calculated for the 1965-66 estimates allows for 946 men (at a total of £820,000). This was calculated with only the 1st Battalion, oyal Infantry Regiment, in mind. The artillery force will contribute another 106 men, plus ancillaries, to the list — and will bring its own expensive problems as the

, unit will be operated in a separate battle area. * * * The report of the Government's investigator into the marketing of Kapuni natnral gas is expected to be in the hands of Mr Shand within the next two weeks. The investigator, Mr J. G. Shattuck, of Washington, hoped to present his report to the Minister last week but Government sources indicated there had been some hold-up. Once this report has been received and digested by the Cabinet some action to utilise the gas can be expected. The first decision will probably be one to go ahead with the proposal to use the gas for electricity. This will en-

able the earliest possible use of the gas and providing quantities are limited will not jeopardise any later final decision on whether or not to plpe the gas to Auckland and Wellington. Additionally, a decision to use some of the gas would be the green light for the oil company consortium to complete planning for the use of the condensate (light oil) available from the gas ' field.

— N.Z.C.N.A. Ncws Service.