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No need for extra backup gas line: Key

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Thu, 27 Oct 2011 8:15p.m.

John Key doesn't think the country can afford a full backup gas line to be built

John Key doesn't think the country can afford a full backup gas line to be built

The Government doesn't think there's any need to build extra backup for gas provision despite a leak which has cost businesses plenty.

Around 2500 commercial gas users north of Taranaki were told to stop using gas at some stage this week since the discovery of a leak in the Maui pipeline.

Frugal use by residents has allowed essential services and small business users such as cafes and some restaurants to start using gas again, but heavy users are still set to wait until next week.

Businesses from burger bars to crematoriums have lost money, and the New Zealand Institute of Economic Research estimated the loss at $175 million per day.

But Prime Minister John Key doesn't think the country can afford a full backup line to be built.

Mr Key said there was backup with the smaller Vector line, but a full backup would be very expensive, noting that a new line being built from Huntly to the Kaipara Harbour will cost about $400 million.

"It's worth remembering the Maui pipeline's been in for 30 years and it's worked extremely well," he said.

"For the most part, while everybody regrets the inconvenience to business and consumers, sometimes that's the nature of critical infrastructure if it goes down."

More than 1000 smaller commercial gas users, such as downtown shops and cafes, were set to get their gas back from Thursday.

Simon Mackenzie, chief executive of pipeline operator Vector, said the 800mm section of pipeline where the leak was had been purged and excavated by Thursday morning.

"The timeline for finalising repair ... is still in the vicinity of two and a half to three days."

Mr Mackenzie said any discussions on compensating businesses should be between retailers and customer, while Mr Key said it was a matter for the private sector.

"That pipeline is owned by Shell, 87 per cent of it, and if there are any issues around compensation I think the first port of call is certainly the private sector, those who are the owners and who service the line."

NZN

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Comments

28 Oct 2011 10:09a.m.

platz wrote:

Key does not need gas,as he is full of P--s and wind.And only say!s what he has been told to say.As he has no brain of his own.

27 Oct 2011 11:24p.m.

Clarke wrote:

Yes no need for safety, so long as you are a corporate giant then you dont have to worry about looking after people... its not the Key way of doing things. The Key way of doing things is to get donationa pledges... then accidentally lose the underground mining report to thank the mining companies for supporting National.. then forget to follow up on signing the Bunker agreement after the oil companies also promise to back you as well. Another pipeline means more cost so screw you if you expect a continuous supply even if its essential to your health. Critical infrastructure goes down.. tough tits to you all John Key says :P