08 March 2007

Marsden B.....

The Northland Chamber of Commerce Acknowledged today’s decision by Mighty River Power the decision of MRP to not continue with the Marsden B project

Chamber CEO Jeff Smith said that whilst this decision is obviously disappointing as this will mean the loss of potential direct consequences such as Job Creation and development opportunities as well as indirect opportunities - we acknowledge that MRP’s decision was based on the company being able to tap ‘easier’ forms of energy such as increased Geothermal resources and the granting of consent to begin construction on a large Geothermal plant at Kawerau.

Jeff Smith said that with regards to future power supply in Northland it would be nice to know that we could guarantee re-locating energy intensive businesses security that for the next 10 years that there would be reasonably reliable electricity at a reasonable cost'

We appreciate that overall the demand for power is increasing on an annual basis whilst more restrictions are being imposed in an effort to provide clean renewable resources

Jeff Smith said the Northland Chamber of Commerce had noticed the state of the future of New Zealand’s power supply were now being determined by the following factors


New Government Energy Strategy

The Government is currently working on an energy strategy that allows for the phasing out of non- renewable energy resources over time with the ultimate aim of a reliable and resilient system delivering sustainable, low emissions energy to the Country

Climate Change

The New Zealand Government has embraced the Climate Change theory that man made emissions has a mark able detrimental effect on the environment.

Security of Supply issues

We face two major long-term energy challenges. The first is responding to climate change and tackling carbon emissions from our energy production and use. The second is delivering secure, clean energy at affordable prices to support economic development, while being environmentally responsible

As a nation, until recently, we simply ignored the inevitability of depletion of current energy stocks. There has been no urgency in exploration or generation of future power supplies.

Whilst the Northland Chamber of Commerce publicly supported the refiring of the Marsden B power plant we also acknowledge MRPs decision based on the amount of generation from other projects such as Kawerau and the commissioning of extra Geothermal capacity

The Northland Chamber of Commerce is concerned with future security of power supply for the following reasons

o The cost to the end user of escalating power prices affects our competitiveness as a global producer of goods and services and therefore has an impact on our economic performance
o The effect on the global environment of some types of power generation
o The scarceness of some Raw fuel supplies (Generation) and the deteriorating infrastructure that carries power from the generation to the end user (transmission).
o Energy has an essential role in modern societies for underpinning economic performance. As a consequence, we believe that energy is one of the more important issues facing Northland.
o The ability to sustain and expand existing Industry and attracting new Industry is dependent on a reliable and affordable energy supply.
o In recent years it has become evident that the lack of available energy for current and projected demand is a major barrier to Regional and National Economic Growth.


Its pleasing to note that Power retailers and the Northland Chamber of Commerce will be presenting a seminar on these issues, later this year to ensure our members are fully informed on the consequences to their businesses


The Northland Chamber of Commerce is Northland’s Premier Business Advocacy, Networking, Education and Marketing Group. The chamber is part of a nationwide group of 30 Chambers of Commerce and 27000 globally. Membership enquiries can be made by phoning 09-438 4771 or emailing info@northchamber.co.nz for a free membership pack.

Jeff Smith
Chief Executive Officer
Northland Chamber of Commerce
3-5 Hunt Street
Whangarei
09-4384771
info@northchamber.co.

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