Shell setback good news in Taranaki

By PAULA OLIVER

Champagne corks are popping in Taranaki after the Commerce Commission's bombshell decision to halt the sale of Fletcher Energy.

Taranaki Chamber of Commerce chairman John Rae, who made a submission against the proposed sale, said the region had been concerned that Shell's buyout would result in a monopoly that would cost jobs at its methanol plants.

"Long term, Shell's objective was rumoured to be to force the Methanex plants offshore to Australia," he said.

"Methanex employs 250 people, and the Taranaki economy couldn't afford to lose them, or the new operators who may want to come here and explore."

Mr Rae said he understood Fletcher Energy had allowed other parties to use its infrastructure of pipelines and storage facilities, but that was unlikely to continue under Shell ownership.

And he had a message for shareholders angered by the commission's decision as they watched dollars wiped off their investments yesterday.

"It's a knee-jerk reaction, and a lot of the dollar activity is due to overseas investors thinking the commission is interfering," Mr Rae said.

"Long-term, the buyout wouldn't have been good.

"It's interesting to see that apparently even Fletcher's local staff were celebrating the decision."

Taranaki residents were suspicious of Shell's motives, Mr Rae said, and were disappointed that the company did not show the same sort of support for the region as Fletcher Challenge had.

"Fletcher have supported numerous charities and sporting activities here for years, but we've seen very little of anything from Shell," he said.

"We are hoping that another buyer will come along, perhaps an American company who contribute more positively."

It was important for the Government to change the way it gave out licensing rights to explore, Mr Rae said.

At present an overseas company could supply all of its equipment and staff from overseas.

"To get a licence to drill in Australia, a contract is tagged," he said. "It means that companies' operations have to have 60 per cent local content."

Body1: Champagne corks are popping in Taranaki after the Commerce Commission's bombshell decision to halt the sale of Fletcher Energy.

Taranaki Chamber of Commerce chairman John Rae, who made a submission against the proposed sale, said the region had been concerned that Shell's buyout would result in a monopoly that would cost jobs at its methanol plants.

"Long term, Shell's objective was rumoured to be to force the Methanex plants offshore to Australia," he said.

"Methanex employs 250 people, and the Taranaki economy couldn't afford to lose them, or the new operators who may want to come here and explore."

Mr Rae said he understood Fletcher Energy had allowed other parties to use its infrastructure of pipelines and storage facilities, but that was unlikely to continue under Shell ownership.

And he had a message for shareholders angered by the commission's decision as they watched dollars wiped off their investments yesterday.

"It's a knee-jerk reaction, and a lot of the dollar activity is due to overseas investors thinking the commission is interfering," Mr Rae said.

"Long-term, the buyout wouldn't have been good.

"It's interesting to see that apparently even Fletcher's local staff were celebrating the decision."

Taranaki residents were suspicious of Shell's motives, Mr Rae said, and were disappointed that the company did not show the same sort of support for the region as Fletcher Challenge had.

"Fletcher have supported numerous charities and sporting activities here for years, but we've seen very little of anything from Shell," he said.

"We are hoping that another buyer will come along, perhaps an American company who contribute more positively."

It was important for the Government to change the way it gave out licensing rights to explore, Mr Rae said.

At present an overseas company could supply all of its equipment and staff from overseas.

"To get a licence to drill in Australia, a contract is tagged," he said. "It means that companies' operations have to have 60 per cent local content."