FATE OF MILLERS FLAT AND BEAUMONT IN FOREIGN HANDS

It seems Edison Mission Energy, the USA-based multinational energy company were not told, either in the scoping exercise by Rothschilds or by the brokers, McQuarrie Bank, about the Tuapeka Project which Contact had valued at $25m (NZ), and although deferred (or abandoned) by Contact Energy, involved the retention of over 4,400 hectares of land in Millers Flat and Beaumont. Nor, it seems were they told of the on-going litigation by residents and the District Council of Alexandra against Contact Energy resulting from flood damage to the town in 1994.

Keeping Edisons 'in the dark' about these two things is believed to be partly responsible for the very large price Edisons paid for the company; some $1.2 billion for the 40% stake in the company that was believed to be only worth about $700m. They eventually paid about $200 million more than Transalta's last bid before they withdrew.

An inevitable result of this inflated price being paid by Edisons for Contact, is that the return on the inflated investment value will inevitably require that power prices will substantially increase to the NZ consumer.

By putting the issue of the land at Beaumont and Millers Flat into the "too hard" basket and flicking the responsibility of that problem plus the flooding of Alexandra in 1994, the fate of both communities is now at the whim of one of the world's biggest multinational energy companies who, despite what seems on the surface to be an impressive record in environmental matters and social responsibility, see Responsible Global Citizen, may not be that good in reality. (remember "good corporate citizen" in the State Owned Enterprises Act?). It is by no means certain that the people of Millers Flat and Beaumont, who have had over 20 years of suffering and uncertainty, will get any better treatment from Edisons than thay have from their own Government, who have simply shucked the problem on to a multinational.

Edisons may well conclude that, if it doesn't matter to the New Zealand Government, and since Beaumont, Millers Flat and Alexandra only small communities in such a tiny "out-of-the-way" place - in almost a 'third world' country, that they needn't employ the vast machinery of their international corporate resources to deal with the problem, and solve it.

Certainly, this is their response so far, as they have refused to even acknowledge our emails sent to them outlining these problems and asking them to do something about it.

SEND THEM AN EMAIL.....

The man to send your email to, complaining about their lack of apparent interest and response to this matter is Randall Oliver, who is the contact for Edison Mission Energy.

EXECUTIVE MEETING OF FRIENDS OF BEAUMONT AT MILLERS FLAT

This will be held at Anzac weekend, April 1999, at Millers Flat, Central Otago. Attendance limited to Friends of Beaumont and invited guests only, including the Clutha Guardians. On the agenda will be the type of action to be taken in the face of the absolute refusal of Edison Mission Energy, and the NZ Government, to talk to us about our concerns, and the woeful collapsing of proper democratic procedures by the Government in it's refusal to consider, and outright dismissal, of the select committee of Parliament whose members from all political parties, unanimously recommended to the Government that the Contact properties in Beaumont and Millers Flat be put on the open market, and that the sale of them be written into the sale and purchase agreement with the purchaser.

Items to be discussed with be launching protest demonstrations against the Government and also, Edison Mission Energy. Friends of Beaumont Inc. still has a large membership, and we anticipate these demonstrations will be launched both locally (Beaumont and Millers Flat) and in Wellington at the offices of Edison Mission Energy, on Parliament grounds and possibly at the APEC conference later in the year. There apears to be no alternative to this kind of action at this point in time.

On the Sunday of Anzac weekend, FOB members and others will gather at the Rongahere war memorial for a service.

For enquiries about this meeting, please email Friends of Beaumont Inc.

WARNING!

In the past, when the Electricity Corporation, then ECNZ, then Contact Energy owned the Tuapeka Project and the dams on the Clutha River, there was action taken by individuals who vandalised company property and destroyed technical equipment belonging to the companies.

Friends of Beaumont Inc. strongly disapproves of this kind of activity, and will not be involved in any way with it.

Friends of Beaumont activity will be strictly confined to legitimate, and strong public protest. Vandalism and destruction of property will not be supported or condoned by members of FOB.

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