Controversial Project

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

Controversial Project

(from Our Oum Reporter)

WELLINGTON, June 21:

The progress toward an iron and steel industry—for years a hotly-debated topic—has drawn much controversy'since the passing of the Iron and Steel Act, 1959, the act under which investigation work is to be carried out. The Minister of Industries and Commerce (Mr Holloway) hoped originally that the company could be formed and work could begin before March 31 last, but his department found some difficulty in allocating the originally proposed 49 per cent, of shares among private interests. Of the £122,500 which was to be subsidised by private interests, the Korman group, newcomers in the New Zealand steel investigation field, were reported to have been allocated £62.500 or more than half.

The balance was believed to have been tentatively allocated as follows: £40.000 to Pacific Steel, Ltd., of Auckland: £7500

to the New Zealand Development Corporation (of which the ironsands scientist, Mr W. R. B, Martin, is a director); £lOOO to William Cable Holdings; and the rest to minor local groups. This allocation was criticised by the Leader of the Opposition (Mr Holyoake), but the Government did not then reply. It did so. however, more recently, when Mr Martin accused the Government of “pirating” the results of his work. The Prime Minister (Mr Nash) said that in five years, the Government had granted £11,590 towards the cost of the .work Mr Martin was doing. In his last annual report to Parliament, Mr Holloway gaid: “It was plain . that there would be considerable need to make use of private facilities and advice, mainly overseas, but partly in New Zealand." Asked about this in view of the Government’s decision to take full control, Mr Holloway said tonight: “I think that we will still get co-operation from private folk. We should get that help. I think, too, that, in general, the latest decision will be accepted by those who offered to participate.”