HOUSE RESUMES

Auckland Star, Volume LXVIII, Issue 290, 7 December 1937, Page 12

HOUSE RESUMES

FINAL WEEK.

STRIKING OIL.

ROYALTY QUESTION.

SHOULD IT GO TO STATE? % MAORI LANDOWNER'S RIGHTS. (By Telegrnph.—Parliamentary Reporter.) WELLINGTON, Monday. The history of oil prospecting in New Zealand has usually been one where the State i-i prepared to pay a subsidy to encourage r-iuli important economic development, though iiiueh private capital lias been lost in the pursuit. However, the Petroleum Bill, in eiiarfie of the Minister of -Mines, Mr. W'el>!>. i« fraine<l on the 'belief that prospe'-tinj* will lx» (uidertakcn by large interests in future without subsidy, for there m no provision for State help. On the contrary, the bill seeks power to :m,»oso a royalty on petroleum or natural £as secured by mining.

The whole discussion on the bill during the second reading stage in the House of Representatives to-day centred around roynlty. Opposition member* contending that th.\ landowner must have some interest in the results.

Though oil is still an uncertain quantity, menilx'r* spent hours hotly disputing whether a royalty of possibly 10 per cent of the value of the oil should go wholly to the State or half to the landowner. The Opposition contended for the latter and strongly supported Sir Apirana Ngata's plea that the .Maori landowner should not be deprived of his rights in the soil. The Treaty of Waitmigi came into the debate and there was also an academic discussion about the mijrrntorv nature of oil.

The Minister of Mine*. Mr. Webb, believed that the bill would encourage "big" capital for prospecting for oil. but lie indicated that if it <li«l not then the Government would do something on its own account.

The Opposition moved an amendment that the bill should he referred back to the Government so that the wholr question of royalty payments could bo reviewed.

When the House adjourned at 10.45 p.m. the debate was unfinished. It is probable that the Government will atk the House to deal with the Supplementary Estimates at to-day' 6 eitting.