SHALE AND OIL.

Press, Volume LX, Issue 18182, 19 September 1924, Page 9

SHALE AND OIL.

OREPUKI AND TARANAKI. BONUS FOR PRODUCTION. ISPECIAL "TEX raiss-') WELLINGTON. September IS. An interesting discussion on oil and its future in New Zealand occurred in the House of Representatives to-day upon the presentation of tlie report ot the GoldfieltJs and Mines Committee upon a petition for consideration respecting the proposfld bonus for tlu; production by the New Zealand Coal and Oil Company of shale oil. '-the committee recommended tuo petition should be rc.ommcndpJ t° Government for favourable rcr.sideratifi:. with a suggestion thit in lieu of limiting the payment of subsidy (at the rate of 3d per gallon) to £-2000 in any one vear, a subsidy not exceeding £3OOO be" paid for the Jirst three years, provided that the total bonus over the period of eight years shall not exceed £ 12,500.

Mr T. W. Rhodes, chairman of the' committee, said the company still had 25 years of their (3(5 years' lease to run, and they had approximately l-100 acre 3. The Government had offered them a bonus of 3d per gallon, which was considered satisfactory by the company, but objection had been taken to the limit of £2OOO par year, and the ommittee thought the yearly amount might be increased without, interfering with Ihe total to be paid by the Government. The industry, if re-es-tablished, would give employment to a largo number of men, and lead to an introduction of about £IOO,OOO new capital. The Hon. J. A. lianan _ said that years ago an expert committee in the Old Country had reported very favourably on the possibilities in regard to Orepuki shale. It would bo a calamity* if steps were not taken to reestablish the industry. Mr de la Pcrrellc referred to tnc cntliusiiisin oi: the people oi' Orepuki in regard to the re-starting of the ind G9 - trv. It was a credit to theiß to lind tho machinery had been maintained in excellent order. . Tho Hon. G. J. Anderson, Minister or Mines, said the Government would consider the proposal of increasing the amount yearly, but not the total amount asked for. That would be done, but the company also must do something. (Hear, hear.) The da> was past when that company could hoUl such a valuable property for over ».0 years without doing anything. -The Government might extc-nd the eomprotection a little, if it had not completed its negotiations by tiie expiry of the present protection. Ho would, however, advise the Government that this could not go on as it had been going for the last 20 years. _ Mr Wilford: Where is the hidden hand? ... Mr Anderson: £< l cannot tell. ah I know is that the company has protection, and has not succeeded m getting the capital. The Government la helping them now, but it wants them to do something. The policy I haxo been going on is to give protection when there are indications that tho individuals who have prospecting areas will do something. If they cannot get the capital' then they must make room for someone else who could." He believed thero was a great future before the industry. He could not say whether there was any hidden, hand or not. There was none insofar as the Government was concerned. A very fair offer had been made as an inducement to the company to go on with the works. Another company was now investigating the prospects in regard to Taranaki oil, and for the first_ time in the history of oil production in New Zealand it had been reported on by a man who was one of the world's outstanding authorities. His assistants now were carrying out a very minute survey of the country. There would bo some legislation necessary in order to enable them to proceed, and this would be brought before the House vflry shortly. If the company was successful it would be one of the finest things that ever happened to New Zealand. It was no use criticising what had been done in the past. Those who had worked and spent their money deserved credit for what they did. Before any boring was done, very minute geological surveys must bo taken. The Government were not going to do as had been done in the past, and hand over bonuses unless there was good evidence the company was going to proceed. In one or two cases after bonuses had been paid out the industry had ceased. That kind of thing was not in the interests of the country, and was to be avoided. Mr Massey said the negotiations that had taken place in regard to Orepuki were the result of a visit he had paid to Hull during a trip to England. There he had met the chairman of the company's directors, who expressed himself as highly desirous that operations should be resumed at Orepuki. He (Mr Massey) saw no hidden hand in it. The chairman was as anxious as any man could possibly be to see the work started again. The Government was equally anxious, as was proved by the fact that it was willing to grant a bonus. Tho chairman asked for a sixpenny bonus, but he (Mr Massey) had said that was out of the question, but the Government might give half that if a satisfactory arrangement could be made. On his return he had reported the matter to the Cabinet ana to tho Minister of Mines, and the result was that Cabinet had granted a threepenny bonus spread over five years. The companv, however, said that was too long a period, and possibly on that point the Government could meet them, the bonus not to exceed a payment of £2OOO a year. The impression he got was that the works wou.d be resumed; and ho hoped they would, and that they would be very successful. The shale was said to be as good as Scottish shale. In Taranaki a powerful company had been formed, and had got an eminent geologist to report on the field. Ho (Mr Massey) was not as sanguine as he had been at one time about it. The Government had spent a lot of money in connexion with this field. Now it had been taken in hand by people who had plenty ot capital behind them, and would give it a thoroughly good trial. He had heard that the country was so broken by v ° action that it would be quite impossible to find oil in large quantities there. Tho capital in this company was partlv British and partly New Zealand. They all knew how much oil was wanted in New Zealand, and with so many oil-burning ships it would continue to be in ever-increasing demand. After some others had spoken without adding anything of material ance, the House decided to adopt the committee's report.