STEEL DEBATE CONTINUES

Press, Volume LXXIV, Issue 22347, 10 March 1938, Page 12

STEEL DEBATE CONTINUES

MONOPOLY OPPOSED

COMPETITION WITH

AUSTRALIA

ONEKAKA URGED AS SITE

FOR SMELTING PLANT

IFrom Our Parliamentary Roporter.J

WELLINGTON, March 9.

Although a representative section of speakers of both sides of the House, has aired its views on the fundamental issues at stake, the debate on the Government's Iron and Steel Industry Bill, which aims at the establishment of the steel industry in the Dominion as a State enterprise, has not yet finished.

However, when the House adjourned this evening, soon after 10 p.m., the Minister for Education (the Hon. P. Fraser) indicated that urgency would be taken for the rest of the discussion, and it is expected that this will accelerate the passage of the measure when talk on the bill is resumed tomorrow afternoon.

The debate to-day was a rather dull affair, amounting to not much more than a repetition on both sides of the earlier arguments. The back benchers figured prominently earlier in the afternoon, but later, and particularly this evening, the Government turned on a full battery of Ministerial speakers.

Obstructive Attitude Alleged

Allegations that the 'present Government had adopted an obstructive attitude toward the development of the iron and steel industry in New Zealand by private enterprise, were made by Colonel J. Hargest (National, Awarua), who was the first speaker today.

"Ever since this Government came into office," said Colonel Hargest, "it has denied assistance to a private company which wished to start operations. It has even been stated that, the Minister for Finance (the Hon. W. Nash) informed the company's representatives that he could not recommend the granting of any assistance because of the fear that the development of iron and steel works in New Zealand might prejudice his trade negotiations with the United Kingdom. "I oppose this bill because it sets- up a complete State monopoly," said Colonel Hargest. "It will result in increased burdens on the taxpayer, and a further, increase in the cost-of-living, while it may also easily cause an unreaction in our principal market overseas."

Mr W. M. C. Denham. (Government, Invercargill) took the lines indicated by the earlier speakers on the Government side of the House, criticising the activities of private enterprise in their attempts to work the Onekaka iron ore deposits, and arguing that the bill would "stop the money-grabbers from getting control of a national asset." Mr C. A. ; y/ilkinson (National, Egmont) claimed that the Government would not be able to manufacture iron and steef in New Zealand as cheaply as it could be obtained in Australia. Prices and Labour Costs "The price of Australian steel in New Zealand to-day is £lO 10s a ton c.i.f. and d. main ports, which is equal to £9 10s, a ton at works," Mr Wilkinson said. 1 "It seems, to me that it "will be a physical impossibility for New Zealand to establish the works and sell steel at. £9 10s,a ton with the high wages and short hours by which the industry will be bound. Steel works operate 24 hours a day and seven days a, week and, the tremendous labour cost will be sure-to make, the cost of production high," Another Opposition/speaker, Mr W. A. Bodkin (National, Central Otago) said that he did not believe that the industry could be put on such a footing in New Zealand that it would be able to compete with Broken Hill. The Australian firm could supply all New Zealand's requirements for years to come, he thought.

One of the most interesting contributions to the debate from the Government side was that of the AttorneyGeneral (the Hon. H. G. R. Mason), who said that the original shareholders in the industry at Onekaka were worthy of all respect, but-the venture had now descended to being simply an asset for company promoters.

Mr Mason defended the compensation clauses in the bill; which had been criticised earlier by Mr W. A. Bodkin (National, Central Otago).

. Mr W. J. Poison (National, Stratford) said that this Government had denied encouragement to private enterprise in its attempts to establish a steel industry in New Zealand.

Question of Site

An appeal to have the smelting plant for the proposed iron and steel industry established at Onekaka was made by Mr K. J. Holyoake (National, Motueka). Mr Holyoake suggested that efforts might be made to influence the Ministers concerned to select some more popular centre for the site, but he claimed that all the experts would agree that Onekaka was the only site which could be economically justified.

"The Opposition stands for reasonably assisted and reasonably controlled private enterprise," Mr Holyoake said. "The members of our sids of the House feel that in this 'respect the nation would be b*.ter served by private enterprise. It is strange to see that members on the Government side always appear to fear that private enterprise might make a profit in some venture such as this. But •would that not be better than for the State to make a loss? ' "In any case, even if private enterprise does make a profit, that profit is still within the national wealth. The nation loses nothing by it. But history shows that the State has usually waited for private enterprise at least to prove the ground before the State steps in and takes control. Private enterpriro may have failed during the process, but it h?is at least proved the ground for the State." Former Liberal Interest The final speaker this evening was the Minister for Mines (the Hon. P. C. Webb), who said that it was interesting to recall that Sir Joseph Ward and other well-known Liberals in 1914 supported a proposal for the State to take over and develop the iron ore deposits. Not one cf those members could be described as wild-headed Socialists. For 25 years private enterprise had been trusted and given every possible encouragement, but it had made a most unholy mess of its efforts to develop the industry.