Alliance Party co-leader Kay Murray says the government should simply ignore the threat tactics of mining transnational Rio Tinto over the planned emissions trading scheme.

Ms Murray says the smelter came to New Zealand because Manapouri power station was virtually built for them, and they have been given cheap electricity ever since that is subsidized by ordinary people.

“How cheap remains a secret, but some estimates indicate that in the latest deal the rate per unit could be as little as a quarter of what the average domestic household pays.”

Given that its supplier is state owned Meridian Energy, this is a huge tax payer subsidy, says Ms Murray.

“It gets even bigger if we add on the cost of building new power plants to supply power for the rest of the country to make up for the 15% of our power that the smelter uses.”

People must realize that Rio Tinto doesn’t care about New Zealanders or our environment. Its first priority is by its own admission, “to create substantial future value for shareholders”.

Rio Tinto increased its shareholder dividend by 31% in 2007 and its annual report indicates a commitment to increase shareholders dividends by at least 20% again in 2008.

Ms Murray says it would have left town years ago if it could get electricity any cheaper anywhere else.

“It could leave tomorrow anyway, if savings in other overheads, such as labour costs, in another country outweighed the benefits of our cheap electricity.”

Ms Murray says the Alliance acknowledges that there are advantages for Invercargill in having the smelter.

“But, it is worth remembering that Invercargill existed before the smelter arrived and it has been through bad times even with the smelter in full production, especially prior to the recent dairy boom. Southlanders have a reputation for resourceful and innovative.”

Ms Murray says the Government should provide incentives for Invercargill to develop a wide range of sustainable industries.

“It should not be reliant on a single overseas company which could pack up and leave at any time.”

Ms Murray says New Zealand cannot continue to allow large foreign owned organizations to dictate what we can and can’t do in our own country.

“Frankly it is offensive that this organization will fly its chief executives all over the world to heavy any nation that dares to put the common good and future generations before the short-term interests of a privileged minority of shareholders.”

She says Rio Tinto should focus its energies on reducing its harmful emissions and making its plant more energy efficient to reduce its financial liabilities under the emissions trading scheme.