Beruflich Dokumente
Kultur Dokumente
1976
HOIJNI BA". ( 11
11
JAPAN'" OR NI"I
Embarrassed by the rapid dwindling most mines are now closed. 'I'he only
of New Zealand's overseas funds,the remaining mines are the Liverpool
Government has been tempted to sell No. 3, a few private mines in the
the Mt Davy coal to the Japanese. Rewanui area, and the Strongman
While earning' foreign exchange It State mine on the coast north of
is economically disastrous, requir- Runanga.
ing large amounts of taxpayer's There is approximately 30 million
money to underwrite the project. In tons and an estimated recoverable
fifteen yearIs'time, the 200 men 7.5 million tons of high grade Papa-
employed on the scherne will be out roa coking coal in the Mt Davy block.
of work, and prospects for long- The coal is in three seams of high-
term industry on the coast will be to-medium volatile , high grade coal
greatly lessened, for the Paparoa which is-"Similar to that of Liverpool
90al, key to future West Coast grade (a high-swelling, coking coal
regional development, will have long with a low-sulphur, low ash, high
gone to Japan's steel furnaces. carbon content). Mining will be
The Mt Davy coalfield lies 10 undertaken by the N.Z. registered
~iles from Greymouth on the Rewanui company, West Coast Resources Ltd.
railway branchline. Mt Davy forms Although N.Z. registered, West
part of the Greymouth coalfield, one Coast Resources is largely foreign
of the oldest and best known in N.Z. owned. ATAKA, a major Japanese
Discovered by Thomas Brunner in 1848,corporation, holds fifty per cent;
this coalfield produced some 30 mill- N.Z. Forest Products, itself approx-
ion tORS of coal after the goldrush imately 25% foreign-owned, holds
years. Due to increased competition another 40%; the balance of 10% is
from oil in the last twenty yeaL3, held by Odlins. Thus, investment in
west Coast Resources foreign in<- HIGH QUALITY COKING COAL
vestors is nearly 60%. HIGH QUALITY GAS COAL
QUALITY: The N.Z. manager of ATAKA,
has sa.id "Greymouth bituminous coal
is the best quality in the world for
steel making purposes because of its
low sulphur content and unbelieveably
low ash content." The director of
the N.Z. Geological Survey in 1965,
Mr R.W. Willet, described the Brunner
Mt Davy block as "the only field in
New Zealand from which coal suitable
for gas making is produced. Also,
the field contains the only signifi-
cant source of coal suitable for the
manufacture of metallurgical coke" -
that is, the coke used in smelting
of metals. With the Japanese Govern-
ment's stringent air pollution laws,
which do not allow imports of high
sulphur content coals, Mt Davy coal
is even more suitable and all the
NZ 'cu FUTURE SOlD FOR $40' per TON
< " the more reason it is worth more for
This all seems to suggest tha~theNew Zealand to keep it for its own
Government has back_ed down on its uses.
stand on foreign ownership of N.Z. 's
natural resources (see elsewhere). PETROCHEMICAL INDUSTRi FOR THE COAST
The Government seems pre1(ared to sell In a recent statement Mr P. Blanch.
to sellout N.Z. 's future to overseas field (govt West Coast) stated:
buyers for the sake of foreign ex- "Deriving oil and by-products
change today. including plastic resin from our huge
coal reserves would arlow this coun-
try to thumb its nose at oil barons.
7.5m TONS OF COAL New Zealand was sitting on a mountain
of coal that could be put to good use
A recent statement by West Coast in producing our own supply of oil.
Resources stated; One of .the by-products would be resinE
"After three years of prospecting for making the base for plastics
by Japanese experts, studies of pros-currently in very short supply all
pecting records, and consultation over the world.
with officers of the N.Z. Mines
Dept, investigations reveal the ex- "COAL SHORTAGE"?
istance of 7~ million tons of recov- Already the Government has admitted
erable coal suitable forfue manufac- a possible reduction in the capacity
ture of metallurgical coke which is of the proposed West Coast coal-
used principally in the manufacture fired power station. Due to be com-
of iron and steel." missioned in 1983, its capacity seems
Earlier the Tokyo Press stated likely to be reduced from 480 MW to
that "The survey confirmed the pres- 400Mw because of uncertainty in the
ence of an estimated 22.6 million amount of coal available. Blending
tons of high grade coal." ATAKA of high-grade coals with low-grade,
and Co. when asked to confirm this coals would mean that a far greater
declined to do so. range of coals would be usable in
this power station. Exporting these
low- sulphur coals elirni.na tes the
opportunities for blending, making
it more difficult to use high-sulphur
.coal reserves. With the uncertainty
of oil supplies and their price, NZ
should be looking toward the greater
security of the coal-fired power sta-
tions to supply our future energy
needs.
NZ must also consider the manu-
facture of her own metalurgical coke.
The cost of importing 4000 tons to
meet the demands of local foundaries
currently costs up to $500,000 in
foreign earnings, which could well
justify the establ,ishmyn): of a West
Coast coke-manufacturing ]9lant.
- .-----~._-----
The main driving force behind West
Coast Resources Ltd's to export
Mt Davy coal, is ATI\KA & Co Ltd of
Osaka, Japan. 1\J though hoJdinq only
:50% of Wes·t Coast Resourc es ~,td,
(New Zealand Forest Products and
OcUins hold the rest), ATAK2\ domin-
ates the partnership. ATAKA intends
to blend Mt Davy coal with up to nine
times that amount of Australian
brown coal (a low-grade coal, but \
there is plenty of it) and use it
all EO' reduce Australian iron ore
in Japan. Not only are both the
Australian mining operations being
don~ by ATAKA, but the iron ore
furnaces in Japan are also owned by
ATAKA. In all probability, this
steel will be used by ATAKA itself
in one of its steel mills about the involved in the beech scheme in the
world. Mt Davy is a project for the future. Sumitomo Chemicals also owns
sole benefit of ATAKA. 25% of the Bluff aluminium smelter _
ATAKA is everywhere: main branch yet another controversial resources
offices operate in Hong Kong, Singa- project (this time power). Yet an-
por.e, "the 'Phillipines, Taiwan, New other. branch of the firm, Sumitomo
York, Los Angeles, Canada, West Ger- Metals Industries, forms part of
many, Britain, Thailand and Australia.the Japanese consortium involved in
In New Zealand alone they have • New Zealand's ironsands exploitation
offices in Auckland and Mt Maunganui.' and export.
Others, most likely, exlst also. The Sumitomo Group is among the
Its New Zealand manager, when asked top three of Japan's conglomerates,
what ATAKA is involved in, replied making it one of the biggest concerns
"Everything - from chopsticks to in the world. In 1972, the Sumitomo
'spacecraft." which gives some' idea .,',Group totalled 115 companies (includ-
of ATAKA' s size and world.,..wide;,s.ci:!:1e. ing allied and loosely allied ones) "
Although ATAKA is a multinational with involvement in everything from
in its own right, it is in fact chemicals to mining to banking.
~erely part of the collosal Sumitomo
conglomerate (zaibatsu), one of the
largest conglomerates in Japan: the
same Sumitomo which is involved in
that other controversial West Coast
project - the Beech scheme. Sumitomo
Forestry is a partner in one consor-
tium that has tended for the beech,
and Sumitomo Forestry - Oji Paper
Company is a partner in a second
consortium which tended. The third
consortium includes ATAKA's Mt Davy
partners, N.Z. Forest Products and
Odlins, so ATAKA could also become
.C)UInJ
STAND
EIGN
CONTRO
fORI.fiN (ONIROl
"Japanese Fishing Company Estab- goes to foreign-controlled companies
lished." "American Corporation Pros- Some people claim foreign invest-
pects for New Zealand Copper." Every ment helps our economy, but these
day our newspaper headlines shout out people either don't realise the bad
the same story: the story of the effects it has or else ignore them.
taking over of New Zealand's economy The growing foreign control of our
by the huge multinational companies economy has very serious consequences
of Japan, America, Britain and Aust- for the New Zealand people, so lets I
ralia. Today, no less than 30% of have a look at some of these consequ-
all company income in New Zealand ences. I
'~~E'lIGN
INVESTMENT IS VERY COSTLY TO profits. Again, let us look at
NEW ZEALAND Comalco as an example.
To provide the enormous quantit-
There are many ways foreign in-
ies of power demanded by Comalco,
vestment costs New Zealand a great
the New Zealand Government had Mana-
deal of money. Firstly, profiffimade
pouri built using taxpayer's money.
by the foreign companies do not stay
The price paid by the New Zealand
in New Zealand; they go overseas.
taxpayer, to date, includes
Foreign companies are owned by ex-
- more than $100 million for the
tremely wealthy businessmen who are
Manapouri power scheme and the
foreigners, not New Zealanders: they,
power line from there to the
and not New Zealanders, get the pro-
smelter,
fits, even though it is New Zealand
- $3 million for the specially-
workers who create these profits.
built road to Tiwai point,
- $4 million for improvements to
Unfortunately, foreign companies
Invercargill's harbour,
are not content to just take their
- An unknown price which is, in
profits out of the country. In
effect, a subsidy enabling
addition to this, every year these
Comalco to get power at only
multinational companies cheat us of
one-tenth the price the rest
hundreds of thousands of dollars by
of New Zealand pays.
avoiding taxation.
In other words, New Zealanders
have actually paid out more money
"TRUTH" reported that "the Inland
for Comalco to establish itself here
Revenue Department has clamped down
than Comalco did itself!
on what is probably the biggest fin-
ancial scandal in New Zealand history.
Over the years, overseas companies,
by manipulating the profits of their
New Zealand subsidiaries, have
cheated the Government and people of
this country of millions of pounds of
tax". (2/11/65}.
This financial scand«l aontinues
today. Just one example is Comaleo's
aluminium smelter at Bluff. Comalco
is one of New Zealand's biggest in-
dustries, consuming no less than
28% of all the electric power used
by the country's industries and
businesses. And just how much has
this industrial eomple~paid in tax?
In" three years, they have paid only
$14,000 in tax! And in the first
two years they paid NOTHING AT ALL!
While avoiding taxes and faking
the profits earned by New Zealand
workers out of the country might
seem costly enough to the people of
New Zealand, the cost goes even
"sot2J<.Y
higher: the New Zealand Government OUR.
actually gives financial help to
foreign companies to help them make ... 1JO
PfViE'I
FOREIGN OWNERSHIP OF N.Z. INDUSTRY New Zealanders need industries
MAKES IT MORE DIFFICULT FOR THE N.Z. that provide stable jobs for its
GOVERNMENT TO MAINTAIN FULL EMPLOY- workers, something foreign-owned
MENT companies cannot provide. Foreign
investment is a constant threat of
Foreign companies do not invest unemployment for New Zealand workers.
in New Zealand because they like us, Foreign investment means job uncer-
nor because they want to do us a tainty, The more our economy is
good turn by providing New Zealanders owned by foreign companies, the
with employment .. They invest simply harder it will be to maintain full
because it is profitable for them to employment in New Zealand.
do so. Any industry set up in New
Zealand will only be kept going GROWING FOREIGN CONTROL MAKES IT
if it makes profits. As soon as the DIFFICULT FOR N.Z. BUSINESSES TO
foreign company has economic diffi- SURVIVE
culties, they will, without hesita-
tion, close 90wn their New Zealand During times of economic diffi-
branch. culty, the Government makes it hard
A recent example of this occurred for both people and businesses to
in Australia. Faced with less de- borrow money by using credit controls.
mand for its cars, General Motors If New Zealand firms cannot borrow
suddenly and without warning closed money needed to expand, they often
down its Australian plants. The re- cannot increase production, possibly
sult was thousands of Australians even cutting production back.
unemployed at a time when it was Multinational companies, however,
extremely difficult for workers to face no such difficulties. Credit
find other jobs. controls imposed by the New Zealand
Government have no effect on them.
They can easily get credit from their
head office, branches and banks in
other countries.
What does this mean? It means that
in times of economic troubles, New
Iealand businesses are at a disad-
vantage to their overseas competitors.
They must curtail production in-
creases, allowing the multinationals
to snap up even more of the New
Zealand market. Worse still, some
New Zealand firms will not survive
and will be bought out by their huge
foreign competitors.
In other words, foreign investment
now means an even greater foreign
control of our economy in times of
economic crisis.
any overseas capital flowing into the Every dollar earDEod by a foreign-
country should be flowing in a way that owned company not remitted overseas_.
will be to the long-term benefit of in profits, is re-invested in NZ. All
the country and the' people living in building,s, factories, and plant built
it~H
with these foreign profits made here
- Mr Rowling, P.M. in NZ rema.in the property of these
foreign The foothold of
Big talk, Mr Rowling. But how can foreign es grows every day,
exporting Mt Davy Coal be of long-term every week e'Fc:rj' month ~
f
INIRfit' (ONIIRIN(I
The availability over the next 10- make us independent of imported oil,
20 years of new sources of energy r is clear stupidity. And we are not
NZ was brought out strongly at the particularly rich in coal. At app-
2nd NZ Energy Conference, held at roximately 1,000 million tons total,
Canterbury University from May 22_24. our reservesper head of population
The sources included wind and solar are less than a tenth of those of
energy, but more importantly for NZ the U.S.A.
at the present, the use of our coal The use of Maui gas to generate
reserves, and our potential in small electricity was criticised on seve-
hydroelectric stations. Equally im- ral occasions as highly wasteful.
portant - but not as thoroughly dis- It is better used directly as a
cussed - was the rational use of the high grade fuel, or alternatively in
available energy resources. One such a petro-chemical industry, as is now
rational use, showing great promise being hinted at by the Government.
overseas, was District Heating, poss- The only reason the Government is at
ibly using energy which would other- present planning to use it in power
wise be wasted. What was not dis- stations is to guarantee a mass
cussed was who should have first market for the gas. If this had not
priority for the energy available, been guaranteed, the oil companies
and whether our present profit-moti- who discovered the gas (the Shell-
vated system of energy use could ever BP-Todd Consortium - one of the
lead to the energy saving that every- sponsors of this conference) were
one present - from conservation ists threatening to either sell the gas
to oil company representatives - overseas or not develop the field.
paid lip service to.
A session on uses of coal showed Over 200 people, from Universities,
that gas and petrol-substitutes from Government Departments, business and
all grades of coal were realistic various environmental organisations,
propositions within the next two participated in the conference. But
deca.des. To sell our coal to Japan, papers presented were all from the
when it could provide the means to first three groups, with business
interests well ism ()f them - on at least one occa-
Prominent Wf~re B~P. ~ and [)Ov.I ChE::mi ic,n i dO\\!Tl t=.:O(:: con1Jn(~nt_s clYlC]
cals (makers of etal. one of their critics.
SponsGrs of the c()nfc~rencc j.ncl11c1f::d,
such well..",known energy savers ar:~ tIle Envi.ronrnent.a.l De.fc;Dce
Air NE,"" Zealand, B.P., Caltex, Ford Society and CAFCINZ distributed leaf-
Lr;::ts dtLL",ing the confe:_t:'encc~
Motors, lvon Watkins-Dow, N.A.C.,
N.Z.E.D., Shell Oil, Shell-BP-Todd,
and to cap it a.ll, NeT" Zealand's
chief waster of power .-:omal co
Power Ltd. QUOTE OF THf MONTH
The only session in which the "BUSINESS. BUT NO'f FOR PROr'IT"
environment orqanisations were offic-
ially recognised was a final 'moral The chairman of Australia's top
issues session. Here Comalco in
l profit earner, Conzinc Rio Tinto of
particular was criticized, arousing Australia Ltd, has said that,
the very vocal annoyance of one of He did not think that business
its three representatives at the wasin business to make a profit."
conference. Chch Press, 7/6/75
The purpose of the presence of the
3 Comalco representatives (indeed, of
many of the other business represent-
atives) seemed questionable. Their
main function seemed to be a public
relations one, and to react to criti-
:r
101"1 (AI(INI
The campaign again~t foreign for(~iqn control lri N~Zc cannot suc-
control in N.Z. i~ a campaign to ceed nless we New Zealanders unite
oppo~e the exten~ive and qrowing and rid ourselves of these foreign
control by foreiqn monopolie~ of ters and our own local compan--
our natural resources and industry ies which work in collaboration with
and also the miLitary presence of them
the U. S.A. in New Zealand. This
control is extended not only econ- C\FCINZ needs members both polit-
omically but al~o politica.lly be- Lcally and f.inancially committed.
cau~e with every new inve~tment_ The campalgn i5 short of money and
made by a foreign company in N.Z., membershi pi s one of the few ways we
the more ~ub,';ervient our goverrunent have of financing our activities.
become~ to foreign capital.
The campaign has no argument with
the PEOPLE of the U.S.A., Japan Membership $2 per annum
Ind"cIe.~ ,,"'"'- years sub_ to "W4khd~ Ii
and Britdin but rather with the huge Name
foreiqn multinational companies that Acldness
suck out profits, plunder our nat-
ural re~ources, galn control over
OUY (.Jovernmcnt ,.;.c:conomy.
I do/d", not want to be informed of
ord}nary business meetings.
We do not; proposE-· that foreign
exploi ters be replaced by local one~. Send to: CAFCINZ,
N.Z. monopolies (CJj. Wattie~) are PO. BOX 2258,
actively working with foreign con CHRISTCHURCH.
panies for the exploltation of their
1-------------------------
own country. Their loyalty is to
PROFIT. The development or N.Z. by
DONATIONS would be mo~t appreciated
the N.Z. PEOPLE may be slower than
if you prefer not to be actively in-
whE,n foreiqn companies are involved
vo 1'led.
but ln the long term it is ~ne only
way to build up this country for DONATION: $.
ourselves and our children rather
than for the benefit of foreign I would like further information on
financier~ and capitalist~. CAFCINZ: