The relationship between the New Zealand governments and the oil companies, 1969 - 1982

Abstract

The interdependence that exists between multi-national corporations and the host countries in which they operate may be viewed benignly, or, from the nation state's perspective, more critically. The desire for the development of natural resources on the part of the host country may lead to dependence upon the multinational operators and ultimately to the diminishing of the nation state's political and economic autonomy. This thesis examines the relationship between the oil companies and successive New Zealand governments from 1969 until 1982. It focusses upon two selected case studies of government/oil industry interaction concerning major development projects - the negotiations related to the development of the Maui field and those regarding the establishment of the Synthetic Fuel Plant. In approaching the inquiry a number of issues are raised: these include the nature of the relationship between the oil companies and the government, the form, content and outcome of their interaction, and the implications of the relationship with regard to national autonomy. One of the more important concerns is to examine the government's ability to handle the oil companies and thus secure the maximum benefit from the development projects for New Zealand. A further concern is to evaluate the nature of the interdependence of the government and the oil companies. The relationship is examined against the backdrop of political and economic changes that have occurred in New Zealand during the decade of the 70's. It is examined at the micro and macro levels of analysis so that the needs and priorities of the parties and also their power relationship may be discussed. As a result of the events and decisions of the 1970's the government and the oil companies now have a very close relationship. The oil companies have acquired considerable political and economic power in New Zealand; the government is and will remain dependent upon them for technological expertise in the short and medium term future. Furthermore, the government must continue to rely on the corporations if the economic benefits that can be derived from the country's hydro-carbon resources are to be realised.