Portal:New Zealand/Selected article/45
Think Big was an interventionist state economic strategy in the early 1980s, sponsored by Robert Muldoon (Prime Minister: 1975 - 1984) and his New Zealand National Party government. The 'Think Big' schemes saw the government borrow heavily overseas, running up a large external deficit, and using the funds for large-scale industrial projects. Petrochemical and energy related projects figured prominently, designed to utilize New Zealand's abundant natural gas to produce ammonia, urea fertilizer, methanol and petrol.
The core 'Think Big' projects included the construction of the Mobil synthetic-petrol plant at Motunui, the complementary expansion of the oil-refinery at Marsden Point near Whangarei, and the building of a stand-alone plant at Waitara to produce methanol for export. Motunui converted natural gas from the off-shore Maui field to methanol, which it then converted to petrol on-site. Declining oil prices rendered this process uneconomic and New Zealand abandoned the manufacture of synthetic petrol. The construction of the Clyde Dam on the Clutha River formed part of a scheme to generate electricity for smelting aluminium.
The New Zealand economy probably benefited from economic activity during the construction period, but the basic justification for the projects, a permanently higher oil-price, did not happen. Oil prices subsequently dropped in real terms. (Full article...)