STATE TO HOLD ALL SHARES

Press, Volume XCIX, Issue 29237, 22 June 1960, Page 14

STATE TO HOLD ALL SHARES

Steel Investigating Company

(New Zealand Press Association)

WELLINGTON, June 21.

The Minister of Industries and Commerce (Mr Holloway) announced today that the Government had discontinued plans to form an iron and steel investigating company with a 49 per cent, of the shares allocated to private interests. Instead, the Government would proceed alone with a company in which all the shares would be held by the State. Mr Holloway told a press conference that Mr Wolfe Fisher, managing*director of Fisher and Paykel, Ltd., Auckland, would be chairman of the company, and that Sir Leonard Wright, of Dunedin, and Mr W. M. Smale, managing-director of the Cambrian Engineering Company, New Plymouth, had accepted the Government’s invitation to become directors. •

Three other directors have yet to be appointed, one each from the Department of Industries and Commerce, the Treasury, and the Department of Scientific and Industrial Research.

Offers by private interests to subscribe for the 49 per cent, of the investigating company heavily oversubscribed the amount required—by about six to one—Mr Holloway said. He said it was evident early in the project that there was a strong conflict of interest among the participants and he came to the conclusion that it was not possible to find a solution to the differences. In any case it was doubtful if the genuine co-operation necessary in such a venture would be forthcoming. The Government would therefore take immediate steps to form the company, said Mr Holloway, and the directors would be asked to meet as soon as possible to take over all the aspects of investigating and testing the ootential of an industrv based on New Zealand ironsands. “After taking into considera-

tion all the difficulties raised since the industry was first proposed I am sure the arrangement now agreed upon will provide the best results for the country,” said Mr Holloway.

“An iron and steel industry would have a profound effect on our economy, and it is essential that a thorough and impartial examination of all aspects be undertaken before any firm commitments are made.

“The proposed company will undertake an investigation only, and it will be for the Government of the day, when the company’s final report has been received, to decide the shape of control of any subsequent operating organisations.” Mr Holloway said the company would have a nominal capital of £250.000, and it was likely that the company office would be in Wellington. He expected the report would take any time up to three years to complete.