"Recent events in the Middle East are [unclear: w] causing a drastic drop in oil shipments New Zealand," claim the advertisements [unclear: aced] by the Ministry of Energy in all our [unclear: ily] newspapers. Iran, as everyone knows [unclear: opped] exporting her oil. Yet while this [unclear: s] meant the world supply of oil has [unclear: dim-ished] and some countries, like the United [unclear: ates] have been particularly affected, it [unclear: es] not necessarily follow that New [unclear: Zeal-d] is now in the throes of a vicious crisis cause it can't get all the oil it wants.

In fact this is not the case at all. The [unclear: al] reason why we are now facing cuts is at New Zealand cannot pay for its oil. [unclear: he] Iranian situation has led the oil [unclear: com-nies] to increase their prices. They still [unclear: ve] oil to sell, would in fact sell us all we [unclear: int]. Only the Government can't afford

As if to add insult to injury, Muldoon, [unclear: rch] and Co. tell us that "there's very little [unclear: yone] can do about it." Oil imports cost [unclear: w] Zealand about S500 million a year in [unclear: reign] exchange, about 15% of our total [unclear: port] earnings. Before looking at what we [unclear: uld] do to lessen this figure, it is worth [unclear: ex-lining] how the governments of the 1970s [unclear: ve] put us in this position.

[unclear: The] official energy policy

The development of energy resources New Zealand is largely dictated by the [unclear: ge] transnational oil companies. Maui gas, for example, is being rapidly harnessed in a way that guarantees quick profits for the foreign investors. Maui gas is not renewable. South Island coal, known by the Government for many years to be suitable for turning into petrol, is now running the risk of being offered to West Germany. That country will, if the proposal goes ahead, bring in the technology, plant and capital to initiate the conversion. Our coal fields will be rapidly depicted, the Germans will make a fast profit, and some of the country's best farming land will be destroyed by open strip mining. Coal is not renewable either.

This is not to argue that our coal or gas shouldn't be used at all. But when it is used it should always be on the basis of serving New Zealand's energy needs in such a way the greatest long term benefit is gained. Overseas investment in the development of our energy resources and the conversion of coal to petrol do not have this aim and are not the only alternatives.

The potential of pine

New Zealand is developing the technology to produce all but the specialist oils from a local renewable source: pine. No one would deny that pine forests are an important part of our economy. At present they service the timber industry, which has a large export market at the moment but, due to increasing competition, cannot expect to hold it. Pine grows well here and on land that has no other farming use.

The process of converting pine to liquid fuel is relatively simple. There would be two major products: methanol and synthetic gasoline. The former would harness 3bout 50% of the wood's energy, the latter 38%. New techniques have shown that this can be increased to match the methanol efficiency. Synthetic gasoline would require no new distribution system and vehicles would need little modification. What is more, with 250,000 hectares of forest cultivated for liquid fuel, over half the country's needs could be met. 250,000 hectares, by the way, is only one quarter of the land we presently have in pine.

Why don't we do it? Right now the cost would not be as cheap as the oil we get from overseas. But the rising price of that oil will soon alter this. More importantly, the oil companies have a significant influence on the New Zealand Government, precisely because they supply our fuel needs. It is not in their interest for us to develop our own resources for ourselves. Yet nothing is more obvious than that this situation will not go away of its own accord. It is possible for New Zealand to develop long term self sufficiency in transport fuel. To do this, we need action soon.

Foreign Dependence

The present fuel crisis, in which New Zealand cannot pay for the fuel it needs from overseas, highlights the dependent nature of our economy. One of the reasons for this dependence is our lack of a heavy industrial base to our economy. Our iron and steel industry is grossly underdeveloped and yet we export good quality coal and ironsands to Japan. In order to maintain the manufacturing sector of the economy, New Zealand has to import the machinery, tools, components and parts that we could in part, be making ourselves. This is one of the reasons for the continued entrenchment of the economic crisis.

The Prospect of an Independent Economy

The Energy Ministry's newspaper advertisement claims: "Nor can we be sure that the situation will improve in the forseeable future". This means only that neither National or Labour (or for that matter Social Credit) have the policies and the will to bring about substantial improvements. As was noted in the article in last week's Salient, the Government's policy is to invite foreign investment in to develop New Zealand's natural resources as they think best. (An article on the latest example of this appears on page 7 of this issue).

New Zealand has the potential in raw materials and resources to become far more economically independent than it is. We also have the technology in many areas (including the conversion pine-to-petrol) to implement a policy with this end in mind. But we can't expect the Government to lead the way. When it feeds us rubbish about a shortage of oil, remember that it put us in this mess. It's up to us, the people of New Zealand, lighting to protect our standard of living, to get ourselves out. Simon Wilson