ISSN 0111-096 PO BOX 2258, CHRISTCHURCH. REGISTERED AT WELUNGTON PO.AS A MAGAZINE. Campaign Against Foreign Control in New Zealand February 1981 No.31 NES, 1, CSRBaigents Pulpmill Propo 2. Third Potline for Comalco 5 3. ky ter Campaign 6 4, The International Capital Market (Part 7 5. Buller Coal Page 10 Aranoana Trip 10 2 Page 1 ANTI ~ SMELT FROom CHRISTCHURCH. TO iN MARCH PAGE 7OTICES... "Bloodless Blitakrie, liew Zealand ase Againet West German Investment in Published by CAFCIN, in association with Clutha Action, International Committee for Justice and Development and the Canterbury University Progressive Club, Copies are $1,80 each or $1,20 for orders of more than four, Grouse are invited to make orders on a sale or return basis, Bloodless Blitzkrieg is selling well, Heip us to spread the rest to as many people as possible, NATIONAL INTEREST? Friends of the Earth (on behalf of the National Interst Day Steering Committee) have published an authoritative booklet entitled "In the National Interest?, This was publiched to mark National Interest Day, November 26, 1980, The booklet examines 4 major areas of encroachment by aujtinationals and local monopolies - mining, energy projects, the second smelter and industrial forestry. John Horrocks of POR does the introduction, Peter Verschaffelt of Peninsula Watchdogs covers mining, Jeanette Fitzsimons of the Values Party and several environmental groups, covers energy developments, Richard Thomson of the Save Aramoana Campaign reports on the smelter, Janet Stephenson of FOE ané the Boumenical Secretariat on Development looks at forestry, Neil Rennie, a farming journalist covers farming and forestry, Bruce’ Josson of the "Republican" examines multinations in NZ, The booklet can be obtained from Box 39-056 Auckland West. 1-5 copies $1 each (retai}); 6 or more ?5c each (bulk rate), Postage is free, RISTCHURGH MEM: ACTENETON ALL ¢ CAFCINZ will be holding a demonstration in March to protest at the fourth and final trial shipment of Buller coal, It will most Probably take the form of a march through Lyttelton, unlike previous turnouts which have been static pickets at the isolated and uninhabited coal loading area, Now that the loading is by conveyor belt and not by trucks there is even less human involvement and thus less people to directly protest at. Details will be announced closer to the date and you will be contacted by phone, Previous shipments have been delayed and Benerally rescheduled so much that we've found written notices to be an unsuitable way of giving people final details,2, CSR-BAIGENTS PULPMILL PROPOSAL In May 1979 plans were unleashed on Nelsonians and their region for a $100 million thermomechanical pulpmill and sawmill complex. If the proposal goes ahead, CSR, the Australian-based multinational, with 70% of the shareholding will hold the controlling interest. The private family forestry company of H, Baigent and Sons will retain the other 30%, At the end of 1979 the CSR feasibility study team announced that an area of 520 hectares in Eves Valley on the western edge of the fertile Waimea Basin was the favoured site, This choice quickly bought CSR-Baigents a fight with local residents and the Nelson Province of Federated Farmers, The Waimea Residents Association was quickly formed to oppose the proposed siting in Eves Valley because of the incompatibility of a pulpmill complex with their rural community and the thriving horticultural industry. It will compete with horticulture and agriculture for the limited land and water resources of the Waimea Basin, Land Grab Just after the release of the Environmental Impact Report (EIR) on the proposal in May 1980, came the bombshell announcement from the winister of Lands, Mr Venn Young, | Governnent approval in principle had been given to CSR-Baigents to buy up 2,000 hectares of land per year for 30 years, ie, up to 60,000 hectarés, subject to their proposal gaining final Government approval. | The EIR contained no mention of such expansionist plans, let alone their implications, It has never been explained why this announcement was made some 13 months after Government apparently sanctioned the dforestation plans. It soon became evident that CSR-Baigent were not just planning a pulpmill and sawmill, but a huge industrial forest-processing complex which could eventually involve up to 3 thermomechanical pulpmills (tmp mills), 2 paper mills, 2 sawmills and a plywood mill. the extra afforestation would almost double the present exotic forest area of 69,000 hectares in the Nelson region, An area which may regard as already too much pinus radiata monoculture! Farmers fear that farmland could be lost to forestry and that the viability of some rural communities and some sections of the agri- cultural servicing sector could be threatened, There is widespread concern at the question of land ownership by a large foreign-controlled company, Baigents currently own 24,000 hectares, which means CSR could control up to 84,000 of the Nelson region, BIR Inadequacies The EIR, produced by the Cawthon Technical Group, failed to answer many of the 'real' questions, The environmental and social impacts of the following were either not covered at all or inadequately covered: foreign control; longer term expansion plans; alternative sites; alternative uses of the wood, water, land and energy resources;the national and regional implications, Some were subsequently covered in the, rushed but excellent, report prepared by the regional planning consultants, Kingston, Reynolds, Thom and Allardice, for the Ndson Bays United Council. However, many have still not been answered, A major ommission in the BIR was consideration of the ‘Forest Industry Study! published by the Development Finance Corporation in March 1980, In’ view of some of the reports findings it can be concluded that this ommission was very deliberate, The report indicates that new tmp mills will require substantial Government subsidies in the form of cheap wood, cheap electricity and export inventives to become even marginally economic, It also indicates that the best future for forestry in New Zealand lies in the production of high quality sawlogs and sawn timber products rather than further expansion of pulp and paper mills. It is worth noting that the Winstone-Samsung toe foreign ownership) tmp mill at Karioi in the central North Island, the closest living relative to CSR-Baigents proposed pulpmill, lost $9 million in its first 18 months of operation and is still losing money, There were over 50 submissions on tho EIR from individuals, public interest groups, other organisations, local bodies and Government Departments, The vast majority were critical of aspects of the proposal, The Commission’ for the Environment audit was very critical and recommended that approvals be withheld pending a number of committments, Including "a statement by Government that the proposal has been evaluated in its broader context and found to be in the national interest; tis judgement would need to cover the degree of foreign interest in this Consortium and its demands on energy and other scarce resources", This statement and others in the audit have since resulted in the ‘think big' Government and big business, which undoubtably includes the multi- national resource-grabbers, trying to restrict the powers of the Commission in commenting on 'non-environmental! matters such as foreign owership, resource use, regional development, employment and other social impacts. Jobs CSR-Baigent, like many proposers of large capital and energy intensive industries, have made much out of the employment opportunities that will be created - with unsubstantiated claims of 2000 jobs ultimately, In the BIR it is estimated that the pulpmill/ sawmill will employ 520 people, which is only 100 more than Baigents present workforce. this estimate appears to be a fairly generous one. There are fears that CSR Baigent may force some existing sawgilling companys out of business, for example Nelson Pine Forests Ltd (who presently employ 120 people), or buy them out because of the anticipated shortage of wood in the next 5 years. If this occurs the net regional euployment impact could well be negative, Bven if 100 new Jobs are created, it is not clear how many will go to those who really need jobs in'Nelson and how many will go to imported technicians. When the cost of the pulpmill ($60 million in May 1929, now over $100 million) and the cost of providing the electricity generating capacity (estimated at $50 million) are considered the claimed 100 new jobs cost around $1,5 million each to provide, Local Hearings Just pricr to the local body elections, the Waimea County Council4. heard nearly 100 objections over seven days to its proposed scheme change to the District Scheme, to enable the establishment of the pulpmill in Bves Valley, The opposition was spearheaded by the Waimea Residents Association, with able support from Federated Farmers, Native Forests Action Council, Friends of the Barth, Royal Forest and Bird Protection Society and many others. Despite the support of the local 'industry-at-any cost’ lobby (the Chamber of Commerce and the Regional Development and Public Relations Organisation) and reputably one of the best lawyers in the country, CSR-Baigents plans received a setback when the County subsquently decided to reject Eves Valley’ as a pulpmill site, To supply the pulpmills water requirements, CSR-Baigent had intended to transfer a water right granted to Baigents for earlier pulpwill proposal (they are really keen to get into the big league). Legal opinions on the legality of this move differed. To avoid possible litigation, Baigents reapplied for a water right to extract water from the Wairoa River. Despite over 20 objections, the right was issued by the Nelson Catchment Board, ‘However CSR- Baigents are not happy with some of the conditions and are taking the matter, along with the Residents Association, to appeal. CSR-Baigent are aleo taking the Waimea County decision to appeal. Both appeals are expected to be heard by a Planning Tribunal sometime in March, Wood Supplies CSR-Baigents proposal requires a large input of State forest wood in addition to wood from Baigents own forests, As a result of approaches to Government the necessary State wood has been put up for tender by the NZ Forest Service, Tenders close at the end of February, However CSR-Baigent are not the only ones interested in the tender, At least one other company is definitely interested also and possibly others, Nelson Pine Forests Ltd, a 100% NZ owned consortium of TNL, Odline, Owens Group and NZ Forest Products, also seek the State wood to . enable them to establish a medium-density fibreboard plant at their Richmond chipmill site, It appeare that there is insufficient wood residues for both the fibreboard and pulpmill proposals to proceed in the immediate future, Friends of the Harth and other environmental groups favour the fibreboard option because it ie a more appropriate scaled development for Nelson, It also is: N& owned and controlled; less demanding On wood, energy, water, land and capitalresources and has con= siderably ‘less ¢onflects with other developmenta and will cause considerably less social and environmental disruption, What You Can Do CSR-Baigent will be finishing their feasibility study in the near future and if they decide to proceed, (which hopefully they won't) will be seeking final Government approvals within the next 2-3 months, You can help the campaign to keep this resource-grabbing multinational out by writing and conveying your views to the Prime Minister and his Cabinet Ministers and to your local MP. For further information on this proposal and its peeceere On cont"),Friends of the Earth 'Harth' bulletins Nos 4,8,9. Submissions on the BIR and the Commission for the Environment audit ‘Straight Furrow' July 25, 1980. Report to the Nelson Bays United Council by Kingston Reynolds Thom and Allardice on the 'Proposed Integrated Sawmill-TMP mill Nelson July 1980. Nelson Environment Journals No. 13, 15 & 16. Derek Shaw FOE (Nelson) : 7.0, Box 7S Nelson THIRD POTLINE FOR COMALCO Overshadowed by the second omelter debate is the construction of a third potline at the Comalco/Showa Denko/Sumitomo Smelting -Bluff smelter, . The third potline was the firet of the proposals in the present burst of new electricity-based capital-intensive export industries, The initiative was in fact taken by the NZ Government, which asked Comaico if it wanted "surplus" power. In fact, the third potline may be the only one of the electricity- based industries that uses genuinely "surplus" power, After its commissioning, any further electricity consumption must come from new power stations at increasingly high cost. The third potline ‘will raiee the capacity of the Bluff smelter by one half: from 150,000 tonnes of aluminium per year to 225,000 tonnes per year. Agreement. with the government was announced in August last year and approval given by the companies involved in October, The expansion is due to be completed in August 1982, with ail pots on-stream in a further 9-12 months. This relatively short period from approval to completion date is almost wholly due to the fact that no environmental audit is required. Only an "environmental statement" has been issued by the Minister of Health, prepared by NZ Aluminium Smelters Ltd, and this will not be audited by the Commission for the Environment, "This was because the original agreement between the government. and the company provided for the establishment of three potlines in stages" said the Minister of Health, Mr Gair. In other words, the third potline is being judged environmentally according to conditions existing when the first two were built 10 years ago. Not even the National Development Act applies. Work will begin in February on the construction of the expansions. About '250 people will be involved in the work, which is being overseen by the Bechtel Pacific Corporation of the USA, a multi- national construction and engineering company which has already been involved in several major works in New Zealand, Cost will be approximately $150 million. Direct smelter employment will rise by about 350, The price Comalco will be paying for its power is as usual being kept secret by the government, but press reports put the price at about 1.5 cents a kilowatt-hour (a unit) or about 0.2 cents less than6 the second smelter has been asked to pay, In May 1980 the bulk tariff was ‘about 1.9 cents a unit" according to Mr Birch, Minister of Energy (Chch Press, May 7, 1980), though according to "Bnergywatch" this figure is too low. 50 Comalco's power for ite expansion is below cost by between 0,4 ana 0.7 cents. Initial talk by Gomalco was that the extensions could cost up to $1 billion with an extra 2,000 jobs provided. These included some for "downstream" industry using the metal for, eg, automobile parts, It appears this was all empty words ~ undesirable words though they may have been, That "dream" would have included fourth and fifth potlines, which presumably even the government baulked at. The promise of downstream industries - Ford and Mazda were reported to be interested ~ was still around when negotiations with the government were underway, ‘This has quietly disappeared now the potlines construction is underway. The expansion is merely another give-away of New Zealand's resources to a multinational congomerate. CAFCINZ opposes the third potline as strongly as it opposes the existing smelter. ANTI SMELTER CAMPAIGN NOW FORMALLY LAUNCHED! After years of skirmishing the Save Aramoana Campaign was formally opened at a function following the announcement that Aramoana had been chosen as the site for the second aluminium smelter. Over 600 people attended an on site rally to celebrate the official opening and to serve notice to the consortium of their intention to stop the smelter, A major reason for the rally was to make people rellise that the site decision changes little. Indeed it simply states where the smelter will be built, if in fact they build it, As of writing, for example, the consortium and the governmont havo not even signed the "Heads of Agreement" (the main points of the electricity supply contract) which was supposed to have been signed at the beginning of December, We understand that the electricity dept. has demanded an interupitability clause, something the engineers say can be done, but which the lawyers say can't! Campaign action over the next few months will focus on both local protest and on the legal avenues open to us. A legal trust is being set up at present to raise what will probably have to be close to $100,000, the purpose of the trust being to fight, through the courts, the establishment of a smelter anywhere in New Zealand, Contemplated legal action includes the National Development Act hearings which Will probably be held around August, injunctions against the roading, and the contesting of District Scheme changes needed by the consortium, At a local level we will continue the programme of acticity we have been engaged in over the last year, However, we hope shortly to take it further afield with the establishment of a travelling embassy (of the independant state of Aramoana). The embassy, a caravan or dus, will tour the country as a P.R. and fundraising venture, Morale is actually extremely high and there has been a sense of7 relief that the site hae finally beon announced. There is no doubt that the waiting was finally starting to get people! However, since Christmas the border post at Aremoana has taken around $3000 in donations and the legal fund is starting to grow - at about the Same rate as lugh Fletchers tension headaches. BUS TRIP TO ARAWOANA March diet to 22nd. $20 per person. Organised by the NO SMEL'TSR COMMITTEE, Meetings cach Tueeday night, 7.30 at Gees Manufacturing Co, 229 Fitagerald Ave Christchurch, ~ a tent occupation of smelter site - an educational weokend, Yor further information Ph.64-908 Chel. (day), or 34-646 Cheh, (evening). Last Watchdog (Nov.1980, No.30) we published the first part of ah article on international moneylending, based on an address given, by an Australian-based banker, to the NZ Society of Accountants, The first part of the article dealt. largely with how "country risk’ was assessed and showed how bankers view the economic, social and political policies of a governm and ite economy. The second part follows..... RE INTE: The rest of the paper largely dbals with technical aspects of inter- national banking. The international capital market ic desertbed It is a single market (any currency can be borrowed anywhere) dominated by the Us dollar which a tue ond of 1979 formed 75% of the market - Deutschmarks were next wi At present the international banking system controle thr to four times as much money as exists in the enti: US, econ*> Its huge size isa result of the Vietnam war and the oil price increases of tho 1970's. Of the $1,100 billion at present in the market, $450 billion is lent by one bank to another - an unsatisfactory state of affairs for the banks since the rate of return is very low. Lesser Developed countries will not borrow or the banks will not lend to them because of their already fragile state, so there are huge amounts of money available for ‘good ris’ like New Zealand, The size of the market and the ees of the US economy has lead to increased flwtuations in oxchang? rates. About 250 banks participate in the international market. Most are US or European with Japanzse banks growing in importance, What the author of the paper significantly dozs not note is the growth in finance sources outside the "established" money market, This is what the Whitlam Labor Government in Australia tried to utilise, sidestepping (presumably) Mr Beevor and friends.& The banks have brance networks. throughout the world, usually divided into geographic areas - eg, "Oceania". As far as taking deposits is concerned, these branches are principally used to tape the ‘local wholesale market" - large deposits from corporations, government bodies, rich individuals and other banks, Loans from the branches do not necessarily come from these deposits however. For example, if it creates no tax diffigulties for the borrower, American banks seck to lend from their branches in the Bahamas or’ the Cayman Islands. These branches in turn would be funded from a main deposit taking sentre, such as London. Ho prizes for guessing why! A free flow of funds within a bank’tius could lead to fund leaving New Zealand for the most profitable tax haven, ti Funds available from the Inter al Market The various types of loans available are outlined. Most loans are for ? years or less though Deutschmark loans may be for longer. Bonds may be for 20-25 years - these are arranged by a bank but are issued directly to the public. Loans may be for as short a period as one month, Interest rates consist of the "cost" of the money to the bank ~ the rate it pays to other banks (set by the “London Interbank offered rate” ~ LIBOR) - plus a margin according (in theory) to the risk in the loan, (New Zealand government loans have a very "fine" margine recently } per cent - reflecting the confidence bankers have in getting "their" money back from here,) Interest rates are not fixed = only the margin is fixed - they are reviewed at "rollover- periods", ususally every 3 or every 6 months, At the rollover, the interest rate is updated to the latest "LIBOR" rate plus the margin, Interest rates can-and-do - therefore vary markedly throughout the life of a loan, The most obvious "hidden" cost of a loan is that due to changes in exchange rates = if the currency of the. loan increases relative to the New-Zealand dollar then New Zealand borrowers must repay more than they originally borrowed - in addition to interest, On top of that, international bankers have crafty techniques like 360 day years, charges for not fully using a loan (committment commissions), fees for repaying a loan earlier than necessary (prepayment fees), and "establishment fees" for giving a loan in the first place, (usually between 0.1% and 0.25% of the loan). Boqurity (that is, like a mortgage over assets) is rarely required, but banks will insist on having equal priority for repayment with other creditors, Gurantees ure asked from a parent company (in the case of a branch of a multinational), usually informal in the form of a “comfort letter." Conditions or "covenants" attached to a loan usually include promises by the borrower not to give any other lender greater security and not to borrow teo mich, ‘Thete are certain "acts of default" which lead to the loan becoming immediately repayable. These acts include the sale of a “material asset", sale of part of the business, making a loss, or defaulting on othér loans, This final “act of default" means that if things start to go wrong the whole business falls like a pack of cards, Expenses of borrowing (local or overseas) are tax deductible. Exchange losses on loans of a term of over one year which are approved by the Overseas Investment Commission are also tax deductible, A withholding tax (one paid out of the interest7 payable, before it ie sent overseas) is theoretically at the rate of 15%, reduced to 10% under Double Taxation treaties which exist with some countries, However, if a loan has been approved by the Overseas Investment Commission the tax is reduced to zero. “The avoidance of withholding tax is important to international banks, because many are able to avoid paying tax, either by operating out of tax havens or by having other deductions enabling them whollyto offset their tax bills," So the New Zealand government has kindly removed this tax on foreign banks} The international banks do not usyally invest in the share (equity) capital of a company. However they do act as brokers - they help in "finding the appropriate commercial partner" for both funds and knowhow, Again, they are acting as agents of the mubtinationals - seeking out new opportunities for them, foans are increasingly being made, not to a particular company, but to a particular project: “project financing." In such cases - usually energy, mining, transportation or forest products industries - where massive capital costs are involved, a consortium of companies is often necessary, The project is as much as possible separated (financially) from the other operations of these "sponsors" (who may put in very little of their own money) and the loans made to the project itself. A typical example would be the proposed Fletcher/CSR/Alusuisse aluminium smelter, "The tender is principally looking to the project itself, and thé cash flows that will apise from it, for the repayment of his loans," The "sponsors" may guarantee the loans; the customers for the project's products will offer the chief "comfort" however, as mentioned previously, Uses of Overseas Borrowing The paper finally outlines the occasions when overseas borrowing by a company may be necessary, To the layman the most obvious situation would be when there is a shortage of funds in New Zealand, Apparently not, There are four main situations where overseas borrowing may be necessary: 1. Exporters can use overseas loans to cushion themselves against ‘currency fluctuations by borrowing in anticipation of sales. 2. Importers can also cushion against foreign currency fluctuations by foreign borrowing and by the use of “forward cover" ~ a kind of insurance against changes in exchange rates, Bigger concerns which export or import large quantities - such as the marketing boards - will have permanent loan arrangements for these purposes. Thus foreign trade further ties a country to the international banks. 3. To invest in companies overseas 4. To borrow at a cheaper rate than can be done in New Zealand = when this 18 possible taking into account currency fluctuations. Thinking of borrowing overseas? You'll have to borrow at least $500,000, although you only need to take about $100,000 of this at a time, But don't forget that you'll have to pay a commitment com10 mission if you don't use all the $500,000, But then you'll have to pay LIBOR plus margin if you go use all the $500,000, Your margin will be pretty frightening too, knowing your credit record (or lack of it) - don't expect anything like the $ per cent tho government gets. Make sure you've got all your bank books with you to show the nice international banker, And to be on the safe Side - vote Tory = your banker will ereatly appreciate that "comfort" (although the Fletchers seem to have been getting away without it for years}) BULLER COAL The third “trial” shipment of Buller coal left Lyttelton in January aboard the Sunda Career, CAFCINZ decided not to picket this shipment, primarily because of the avkward tine of year (it was originally due in New Year weekend ~ it was actually several weeks late) We decided to concentrate our energies on the fourth and inal shipment (see Notices P.1) Between the second and third shipments, the Seamens Union had held talks with West Coast miners, Trade Councils and the Government, The upshot was that the miners and Trades Councils declared their support for the €0al going in New Zealand-manned ships (they also declared the coal would be best used in New Zealand) and the seamen agreed not to threaten the miners’ livelihood. The Government agreed to do feasibility tests on shipping the coal via the Shipping Corporation or the Union Steam- Ship Co, So there was no industriel picket from the seamen this time round, In fact, no union took any industrial action whatso- ever, The FOL still hasn't formulated its policy on exporting NZ raw resources, and nothing more has been heard from the Canterbury Trades Council. ‘The Government hes announced a number of other schemes involving the export of West Coast coal, for example, Denniston and Reefton coal is scheduled to go to countries as diverse as Fiji, Taman and South Korea, ‘The Government has lifted its ban on the sale of steaming coal, and some is going to be exported to Japan, The Government has also said that Buller coal exports could increase eightfold in the next couple of years (to 2 million tonnes p.a.), and therefore the Coast would need its own direct export faciiities Ge, a deepwater port or monomooring buoy slurry pipeline.) The Railways indignantly replied that it could handle the extra, as it was already handling a 50% increase in Coast coal traffic. fronically, now that the Lyttelton Harbour Board has finally got its much-vaunted conveyor belt system fully operational, it doesn't work, The third ahipyent was actually loaded at a much slower rate than the second (loaded vy cumbersome method using trucks and the conveyor), hecause the thing kept breaking down. 30 there may be hope for us yet. ‘TRIP Just as there is no such entity as Comalco to be found at Tiwai Point (only a good Kiwi joker called New Zealand Aluminium Smeiters Ltd), so the monolith of Fletcher/Challenge, CSR and Alueuisse has disappeared, to be replaced by something called South Pacific Aluminium, Well,It whatever they call themselves, they're no mugs, They made their announcement that Aramoana is to be the site for the second smelter, in Christmas week, Campaign Power Poll in Christchurch and Timaru had resolved to make @ protest trip to whatever site was announced, the first weekend after the announcement, Undaunted by it being Christmas weekend, they were true to their word, Several vehicles full of Christchurch people travelled to Dunedin, where they joined with the Timaru contingent and individuals from other parte of the South Island, CAPCIN members were among those who travelled from Christchurch. Though hectic and tiring, it was well worthwhile, The guests were showered with traditional southern hospitality by the Save Aramoana Campaign and local residents, They were able to grasp the immensity of the project (it will cover 156 hectares) by being taken on a couple of excellent guided tours, They demonstrated at the proposed site, with a particularly good piece of street theatre from the Timaru people, and forcefully got across the message in the teat national media that this is an issue of national concern, not just one for Dunedin people, Considering the short notice and the extremely inconvenient time of year, it was an excellent turnout, ‘The battle against the suelter has only just begun, both locally and nationally,This document (reprinted below) is self-explanatory, The aim is simply for as many people as possible to publicly dissociate themselves from the plethora of secret deals being concluded between the Government and multinationals and/or local monopolies, The recent formation of the SoutHand Resource Monitor Group is a welcome move in a province that has been dubbed one of New Zealand's two "energy provinces" (the other is Taranaki), It is particularly significant coming from an area that hosts New Zealand's only (so far) aluminium smelter. They stress the noed for each signatory to make a token payment of 1@cents, They ask that any expenses incurred be daducted from money collected and the balance sent to them. CAFCING urges as many of its members as possible to sign the attached document, and to order further copies to distribute them- selves . Lets show the Government and the multinationals that they don't act in our names, that their secret deals are not binding us. (Block Capitais please) NAME: ADDRESS: PHONE NO, Please send ______ copies of the Instrument of Renunciation to me at the above address, I agree to return all documents, completed or otherwise, and 311 outstanding cash to Southland Resource Monitor Group, P.O. Box 7545 Invercargill, Signature: Date:Sustrwment of Remuviation Fxplondtion @ SECRET AGREEMENTS: “The agreements referred to in this signed statement are those made on behalf of a sovereign and permanent state, thé major party, on the one hand and by transient or opportunist bodies, the lesser party, on the other: The usust reason given for such agreements being made secretly is that the lessor party will suffer a disadvantage in the marketplace, which may be true but which is of no consequence to the sovereign party whose resources are the subject of the aereement. Accepting this reasoning as valid gives the lesser party an undeserved bargaining position ‘over the sovereign pasty, and also over other parties wiio may be prepared to pay a higher price, Secrecy allows factors other than ones which may be stated to enter into negotiations, making deception possible over a wide political and business range. @ DEMOCRACY: Citizens select their representatives on a basis of observed performance. Secrecy removes the people’s right to oversight and, in effect, is assumption of a right that has not been granted. Democracy must be seen to be done. © UNFAIR TAX PRIVILEGES: ‘The second clause refers to the tendency to favour certain industries or exporters by tax or Joan incentives under the justificetiop of export or regional development. These privileges are’ frequently unfair and highly distort- ing to the economy. In particular, where applied to finite resources being sold overseas, or in the sale of developed resources such as electricity, it means that the resource is being undervalued in the context of the general economy. @ NO CONSTITUTIONAL SAFEGUARDS: ‘New Zenland has no Constitution or second house to monitor the activities and decisions of the elected chamber, ‘Oversight can only be exercised by the vigilance and will of the people on the basis of the availability of full information. @ RENUNCIATION: Signing this document gives the people a chance to repudiate decisions made by Government on the basis of knowledge unjustly denied to them, This is not a petition but an instrument of purposeful involvement, the effect of which will be to indicate to governments and industries that such agreements, not made with the full will of the people, are not respected or held as binding by the people. = ‘Tt will allow any signatories to this docament, who may in future become members of Government, to become without compunetion parties to the abrogation of agreements considered unsatisfactory by the people of New Zealand, @ TOKEN PAYMENT: ‘As # sign of good faith, all signatories to this instrument are making @ token payment. This will be used to cover césts, research snd publicity. SPONSORED BY THE SOUTHLAND RESOURCE MONITOR GROUP, P.O. BOX 754, INVERCARGILLGo His Lxcelleney The Governor Geveral of Nef Zealand Susteument of Remmeiation Your Bxeelleney, We, Her Majesty's obedient and loyal subjects, pray that Her Majesty be informed that we, the undersigned citizens of New Zealand, hereby renounce responsibilty for the honouring of any agreement made in secret, or following secret negotiations, on our behalf, by any member or menibers of Government or a Government agency ‘on the one hand, and any company or corporation, whether domiciled in New Zealand or overseas on the other hhand, in respect of the allocation or disposal of any publicly-owned resource, whether occurting naturally or developed as a result of public enterprise, ot in respect of the disposition of any part of the New Zealand labour force. Farthermore, we renounce responsibility for the honouring of any agreement, secret or otherwise, mado by the above parties where, by taxation discounts or other fiscal mearures, the true value of the resource is not being fully reatised to the benefit of the sovereign people of New Zealand. nn NAME ADDRESS, . SIGNATURE ‘Asa token of good faith each signatory has donated the sum of 10 cents SPONSORED BY THE SOUTHLAND RESOURCE MONITOR GROUP, P.0, BOX 754, INVERCARGILL ‘TO WHOM THIS DOCUMENT SHOULD BE RETURNED