Wednesday, June 11, 2008
Liabour's blunders over its energy policy cannot come clearer than this.
The New Zealand Herald reports on the cost to large users of unreliable power supplies, plus its impact on businesses in Auckland.
First, the Bluff aluminium plant has lost $12 million of production as it tries to cut energy consumption.
Other industrial users are also losing trade to India and China.
One of the country's other big spot power buyers, Pan Pac pulp and paper mill near Napier, has shut down three of five of its pulping machines.
Mill general manager Fred Staples said the company had had to give up developing some business in China and India because it could not match the marketing effort with production.
Businesses in Auckland are also suffering.
Large commercial customers, especially those in central Auckland who suffered during the 1998 cable failures, would now wonder if there would be a full-blown crisis this winter. Confidence had been eroded, Matthes said.
"All of that is chewing up management time and causing anguish. All of that flows through to potential investors in businesses."
So What's the solution?
"The Government should now be removing constraints to build gas-fired power stations around Auckland, particularly given the Rugby World Cup and the consequent surge in visitors and focus on this country, was just over three years away."
In the meantime, National advises consumers to make bigger power savings than the government says, believing supplies aren't secure,
And in another twist, National also notes how Liarbour policies are causing carbon emmission to rise yet further.
Of course, there is one way for New Zealand to reduce our carbon footprint and this maybe a consequence of government failure. If we cannot supply reliable energy for businesses, then they just might well relocate to places that can, like Australia and China!
Posted by FAIRFACTS MEDIA at 11:11 AM