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Secret power contract not a good deal for Kiwis

Tuesday 2 October 2007, 6:46PM

By Green Party

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BLUFF

The numbers on Meridian Energy’s secret deal to supply cut rate power to the giant Bluff aluminium smelter don’t add up to a good deal for New Zealanders, the Green Party says.

“In a world facing accelerating climate change and the end of cheap oil our renewable hydro resources are going to become incredibly valuable,” Co Leader Jeanette Fitzsimons says.

“Selling 15 percent of them off at cut prices in a secret deal to an overseas owned company until 2030 can’t be the best deal for New Zealanders.

“Metal smelting uses more energy per million dollars of income generated than any industry. That means that any other industry could use that amount of power to employ more workers and generate more income,” Ms Fitzsimons says.

“Recent developments at the smelter have given it the capacity to shut down some of its production with no damage to the plant. At the very least the deal should have required the plant to reduce production in a dry winter relieving the pressure on the rest of the country’s consumers. But we are not even allowed to know whether this opportunity has been taken because the deal is secret.”