IRON DEPOSITS.

Auckland Star, Volume LXIX, Issue 208, 3 September 1938, Page 12

IRON DEPOSITS.

ARE THEY PAYABLE ?

ONEKAKA INVESTIGATIONS.

EXCEISITE estimate# made.

(By Telegraph.—Parliamentary Reporter.') WELLINGTON", this day. An assurartcc wa« given to the House of Representatives yesterday afternoon by the Minister of Industries and Commerce, Mr. Sullivan, that the Government has not made any serious commitment so far in connection with its £5,000,000 plan for tho establishment of an iron and steel industry in the Dominion. The question came up when the House was asked to approve votes totalling £42,000 on the Iron arid Steel Industry Account, including £38,300 for surveys, Mr. W. J. Bioadtoot (National, Waitomo) asking what exactly was being done with this money. According to newspaper reports, he continued, there was some doubt whether the amount of iron ore originally reported to be at Onekaka was really there, and he wished to know if the right methods were being adopted to prove the deposit. The question was supported by the Leader of the Opposition. Mr. Hamilton, who remarked that expenditure on the j Purvey seemed wise when a £.5,000.000 expenditure was involved. He would rather see £100,000 expended on investigation than for the country to commit itself to a huge scheme without proof that the iron ore was available. Prudence. "It is pretty certain that the original rosy estimates of the total of 100,000,000 tons of ore are altogether excessive," stated Mr. Sullivan in the course of his reply. Despite the fact that lie had authority to proceed with the scheme, he considered it a matter of ordinary prudence to make perfectly certain, before committing the country to an expenditure of £>.000.000 that the raw material was available in sufficient quantity. Therefore it was decided to test the deposits, as the existing estimates been compiled on surface indications. Boring operations were being carried out and tunnels being driven, the beet scientific advice being followed ir. the survev.

Mr. Broadfoot: The deposits might be l?es, but yet quite feasible? The Minister: Yes, that is correct. If we had 50.000.000 tons we wou'd he pretty well off and there would bv nothing to prevent us from going ahead Mr. S. G. Holland (National. Christchurch North): How long will it take? The Minister replied that probably by April or May next there would be fairly good indications, and they were not touching the capital in the meantime. The £5,000,000 would remain intact until they were assured of the material being available for the industry. Mr. Hamilton: You have not raised the £5,000.000! The Minister: We have not clone anything at all, and meanwhile the work is being done out of employment promotion funds. However, I am confident that we will have sufficient ore to start an iron and steel industry, but I am not going to ask the Government or country to go ahead on the basis of my confidence until it has been proved. Disappointed. Mr. Sullivan added that a good deal of preliminary work had been done in the way of a market survey, and he was disappointed that it "had been necessary to delay making a start. It might be that it would be necessary to reconsider the proposal to establish" the works at Onekaka, and whether it would be advisable to build a town there. Replying to further questions, Mr. Sullivan eaid that there had been no commitment for machinery. The vote was passed without further discussion.