SCRAP IRON EMBARGO.

Auckland Star, Volume LXIX, Issue 208, 3 September 1938, Page 10

SCRAP IRON EMBARGO.

AUCKLAND FIRM'S LOSS

A firm in Auckland is faced with a substantial loss because of the embargo placed upon the export of scrap irSn and steel, for which good markets are offering overseas, but for which there is no market in Xew Zealand. When the embargo was imposed the J rime Minister stated that the reason tor the embargo was that the scrap iron and steel was required for the projected •State iron and steel industry. The Auckland firm then wrote offering to sell to the Government, but the" bitter replied that it was not prepared to purchase nor compensate tlpe firm for the loss involved. Refusal was also granted to export the scrap iron to England, where the metal is needed for rearmament purposes.

Landed with a valueless commodity, the firm could not see its way to continue paying rent to the Government for railway sidings, and just over a week ago wrote the Minister of Customs asking if any objection would be taken to the scrap iron being dumped into a swamp or used as "filling." A reply was received en Thursday that the disposal of the scrap iron was one for the decision of the merchants concerned. The Auckland firm has not, since the war with China, offered any scrap metals for export to Japan, and it therefore feels that the Government should not refuse to grant a permit to ship the metal to Australia or England.