TrustPower will hurry to fill gap

By DANIEL RIORDAN

Embattled West Coasters looking for help from Deputy Prime Minister Jim Anderton's new "jobs machine" scheme may have more to gain from TrustPower, the country's fourth-largest power company.

TrustPower is planning to build the country's largest private-sector hydro scheme near Greymouth, heading off looming power shortages on the West Coast.

The energy will be needed by several large projects which could create up to 500 jobs, in addition to any developments sparked by Mr Anderton's package.

Mr Anderton yesterday detailed the first three parts of the Government's Industry New Zealand programme, designed to stimulate export-earning, job-making and business innovations.

The initiatives, foreshadowed in last month's Budget, include an Enterprise Awards Scheme, providing up to $10,000 a year for entrepreneurs. Mr Anderton expects at least 250 awards to be made over the next six months.

A Regional Partnership Programme will provide up to $100,000 a region for early-stage planning, up to $100,000 a year for building capability to implement strategic plans, and up to $2 million for major regional initiatives.

The third component, an Investment Ready Scheme, will offer training and information for small business and entrepreneurs, and small business brokering to help businesses raise up to $5 million of capital.

The programmes have been designed by the Ministry for Economic Development and will be administered through the Government's BIZ programme.

Other elements of Industry New Zealand's package will be announced later.

The depressed West Coast is high on the list of regions Mr Anderton wants the new initiatives to help.

The Government has already given $120 million to compensate the region for the end of native logging in 2002 by state-owned Timberlands West Coast.

The details of that package, including how the money will be distributed, have yet to be finalised.

But more money - from the Timberlands settlement or from Industry NZ - will not be enough if the Coast's looming power shortages are not addressed.

Local lines company Westpower is forecasting power shortages by the middle of next year. This could cripple gold, coal and dairying developments by Macraes Mining, Grey Coal, Westland Cooperative Dairy Co and Solid Energy. These projects are coming on stream between now and 2004, creating about 500 jobs and requiring an estimated extra 33MW of electricity.

About 34MW a year is supplied to the West Coast.

Options for boosting power include upgrading the capacity of transmission lines, building new transmission lines or building additional generation.

The third option is favoured by TrustPower, the Tauranga-based generator and retailer whose $809 million of assets include seven small power stations on the West Coast.

The company wants to build a 62MW hydro station at Dobson, near Greymouth, upgrading its much smaller Arnold Hydro Scheme.

The project would provide enough power to supply 25,000 homes.

It would involve flooding land, including a small section of high-quality Department of Conservation land.

The scheme would take about five years to build, including a couple of years going through the resource consent process, although the company hopes that might be accelerated.

TrustPower generation manager Roger Burchett said resource consent applications would probably be lodged next year. The company plans to consult local groups, including Maori and recreational users of the land and stretches of river that would be affected.