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Think Big
Think Big was an interventionist state economic strategy of the Third National Government of New Zealand, promoted by the Prime Minister Robert Muldoon (1975–1984) and his National government in the early 1980s. 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 utilise New Zealand's abundant natural gas to produce ammonia, urea fertiliser, methanol and petrol.
The National Cabinet Minister Allan Highet coined the "Think Big" label in a speech to a National Party conference in 1977. Economist Brian Easton also used the term "think big" in describing economic strategies.
In the late 1970s, New Zealand's economy was suffering from the aftermath of the 1973 energy crisis, from the loss of its biggest export market upon Britain's joining the European Economic Community, and from rampant inflation.
In 1978, New Zealand faced a further crisis in oil-supply. OPEC continued to raise the price of oil. Then in 1979 the Iranian Revolution paralysed that country's oil-industry and 5.7 million barrels (910,000 m3) of oil per day were withdrawn from world supply.
In 1978, Bill Birch became the Minister of Energy. He looked to the substantial reserves of natural gas under Taranaki and off its coast as an opportunity to bring life to the ailing economy.
In 1979, the oil crisis worsened. During the first half of 1979, OPEC raised oil prices from US$12 a barrel to US$19 a barrel. The New Zealand government banned weekend sales of petrol. On 30 July 1979, the government introduced carless days, where private motorists had to choose one day of the week, on which they could not drive their motor vehicle. Heavy fines were imposed for motorists who were caught driving on their nominated carless day.
The increases in oil prices substantially worsened the country's already precarious terms of trade. The cost of oil loomed as the major component of the New Zealand balance of payments deficit. Muldoon's administration intended the Think Big projects to reduce New Zealand's reliance on imports, especially oil, and thus improve the balance of payments.
The core Think Big projects included the construction of the Mobil synthetic-petrol plant at Motunui, the complementary expansion of the Marsden Point Oil Refinery near Whangārei, 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 saw a reduction in the production of synthetic fuel; however, the industry still remained at large due to prior investment. New Zealand would abandon the manufacturing of synthetic petrol in February 1997, allowing the plant to switch the focus to methanol..
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Think Big
Think Big was an interventionist state economic strategy of the Third National Government of New Zealand, promoted by the Prime Minister Robert Muldoon (1975–1984) and his National government in the early 1980s. 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 utilise New Zealand's abundant natural gas to produce ammonia, urea fertiliser, methanol and petrol.
The National Cabinet Minister Allan Highet coined the "Think Big" label in a speech to a National Party conference in 1977. Economist Brian Easton also used the term "think big" in describing economic strategies.
In the late 1970s, New Zealand's economy was suffering from the aftermath of the 1973 energy crisis, from the loss of its biggest export market upon Britain's joining the European Economic Community, and from rampant inflation.
In 1978, New Zealand faced a further crisis in oil-supply. OPEC continued to raise the price of oil. Then in 1979 the Iranian Revolution paralysed that country's oil-industry and 5.7 million barrels (910,000 m3) of oil per day were withdrawn from world supply.
In 1978, Bill Birch became the Minister of Energy. He looked to the substantial reserves of natural gas under Taranaki and off its coast as an opportunity to bring life to the ailing economy.
In 1979, the oil crisis worsened. During the first half of 1979, OPEC raised oil prices from US$12 a barrel to US$19 a barrel. The New Zealand government banned weekend sales of petrol. On 30 July 1979, the government introduced carless days, where private motorists had to choose one day of the week, on which they could not drive their motor vehicle. Heavy fines were imposed for motorists who were caught driving on their nominated carless day.
The increases in oil prices substantially worsened the country's already precarious terms of trade. The cost of oil loomed as the major component of the New Zealand balance of payments deficit. Muldoon's administration intended the Think Big projects to reduce New Zealand's reliance on imports, especially oil, and thus improve the balance of payments.
The core Think Big projects included the construction of the Mobil synthetic-petrol plant at Motunui, the complementary expansion of the Marsden Point Oil Refinery near Whangārei, 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 saw a reduction in the production of synthetic fuel; however, the industry still remained at large due to prior investment. New Zealand would abandon the manufacturing of synthetic petrol in February 1997, allowing the plant to switch the focus to methanol..