The Press FRIDAY, JUNE 10, 1960. Need For Iron And Steel Inquiry

Press, Volume XCIX, Issue 29227, 10 June 1960, Page 14

The Press FRIDAY, JUNE 10, 1960. Need For Iron And Steel Inquiry

The complaint of Mr W. R. B. Martin makes imperative a full inquiry into the secrets of the Government’s plan for the development of an iron and steel industry in New Zealand. Since 1953 Mr Martin has been on the “ inside ” of the current phase of investigation into New Zealand’s ironsand; and he has conducted a research unit at Victoria University, largely financed by private funds. Mr Martin complains that the Government has “ pirated ” results of his research and by “suspending the law” has “ robbed his backers of “any hope of a return or of “ recovery of their investment ”. When the formation of a company to determine the feasibility of an iron and steel industry in New Zealand was suggested last year, it appeared that the main parties would be the Fletcher group and the New Zealand Development Corporation, of which Mr Martin is a director. However, the position has since changed drastically. The exploratory company, tentatively known as the New Zealand Iron and Steel Investigation Company, is to have a capital of £250,000, 51 per cent, of which will be held by the Government. Of the remaining £122,500, more than half, £62,500, has been allotted to the Korman group, an Australian organisation with extensive interests in textiles and finance but with no experience in iron and steel; Pacific Steel, Ltd., of Auckland, has been allotted £40,000 in shares, and the New Zealand Development Corporation (Mr Martin’s company) £7500. William Cable Holdings were offered £lOOO, and others, including the Fletcher group, smaller amounts. The announcement of these allocations at a secret meeting called by the Department of Industries and Commerce caused a great deal of annoyance, and strong

protests by New Zealand interests held up registration of! the company. At that stage there was! abundant cause for investig-! ation into the department’s disposal of a valuable New Zealand asset. An inquiry would have determined whether the department was in fact “freezing out” New Zealand interests and favouring outside interests. The charge against the department and the Government is now more pointed and more serious: that persons whose work and capital were given to the essential preliminary investigation have been denied the opportunity of adequate recompense for their enterprise. On two occasions the Leader of the Opposition (Mr Holyoake) asked the Minister of Industries and Commerce (Mr Holloway) for a full statement about the organisation of the proposed company. Mr Holyoake expressed special concern at the “very grave risk” that when Parliament reassembled it would be confronted with an accomplished fact In a reply on May 2, in which he refused again to reveal “ confidential “ discussions ”, Mr Holloway did nothing to allay Mr Holyoake’s fears when he said that “by “ next session I hope the matter “of establishing the investigat“ing company for an iron and “.steel industry [will be] com- “ pletely resolved ”. Our hope is that the addition of Mr Martin’s charges to other matters will impress upon Mr Holloway the wisdom of delaying formation of the company until Parliament has discussed the matter. No-one should be more eager than Mr Holloway to demonstrate to Parliament and the country that everything in this transaction is above-board and that nothing is being done that is detrimental to New Zealand’s economic interests or to its reputation for fair dealing.