OIL REFINERY IN N.Z.

Press, Volume XCVIII, Issue 28984, 27 August 1959, Page 14

OIL REFINERY IN N.Z.

Inquiry On Costs Sought

(New Zealand Press Association) WELLINGTON. August 26.

The Government was urged by Mr W. S. Goosman (Opposition, Piako) in the House of Representatives this afternoon to set up an independent inquiry into the establishment of an oil refining industry in New Zealand. Interested parties should have the right to make submissions during an inquiry, said Mr Goosman.

The Minister of Industries and Commerce (Mr Holloway) told Mr Goosman. in a written reply to a question, that on present prices and Costs refined products made in New Zealand were expected to sell comparably with imported products. Discussing the reply, Mr Goosman said: “If a refinery here is going to be economic that's all right, but we want to make sure first. There should be an inquiry and the people should be given an assurance that the price of petrol refined here would not be dearer than the imported product.”

Mr Holloway said the Government and the company investing money in the refinery had already given an assurance that the industry would be economic. "The decision 1o build a refinery was not made by this Government,” said Mr Holloway, “but the Government will co-operate with the builders of the refinery.

"To suggest that New Zealand has not reached the state where it can support a refinery is ridiculous,” said the Minister.

Mr Holloway said a refinery would save New Zealand about £3sin in overseas exchange annually and employ about 500 persons. It would take' about three years to build the refinery. Supplementary Industries

An oil refinery would begin the cycle of supplementary chemical industries based on oil, and New Zealand had to have oil if it was going to have those supplementary industries. "I repeat.” said the Minister, "that the oil refinery proposal came from industry, and the Government has offered assistance to get it started as soon as possible.”

Mr Holloway said he hoped to have the decision on a suitable site before the end of the year. Production, however, would not commence for three or four years at the earliest.

"The prices of the two petro-leums—-refined locally and imported—will be competitive, and surely that is a reasonable basis for the establishment of an industry in this country,” said Mr Holloway. Mr S. W. Smith (Opposition. Hobson) said there' was no suggestion that the Opposition did not want to see a refinery established in New Zealand. “But we want to be certain the final result will not be an added burden on this country,” said Mr Smith.