Plea For Taranaki Chemical Industry

Press, Volume CI, Issue 29872, 12 July 1962, Page 10

Plea For Taranaki Chemical Industry

(N.Z. Press

WELLINGTON, July 11. A plea for the establishment in Taranaki of an industry for the production of explosives, nitrogenous fertilisers. petrol, ammonia, plastics and other chemicals from the newly-discovered natural gas was put to the Prime Minister (Mr Holyoake) and the Minister of Industries and Commerce (Mr Marshall) by a deputation representing 23 Taranaki local bodies tonight Although the gas and condensate beneath Taranaki soil was the property of the State, said the deputation, it was felt that the fortunes spent by Taranaki people over 75 years in attempts to win payable oil, entitled the province to special treatment. They asked the Government to write into the agreement with the oil companies a

special reduced price applicable to Taranaki which would be lower than the price offered the largest bulk user of the gas. The proposed industry, it was held, should be guaranteed a suggested quantity of 30 million cubic feet of gas a day and should take any additional gas that the oil company could not send through the pipelines as fuel. It was said that 20 million cubic feet of gas could produce 45 tons of ammonia and 165 tons of nitric acid, which would result in 210 tons of ammonium nitrate With an equal amount of limestone this would give 420 tons of calcium ammonium nitrate. In countries without natural gas the hydrogen for the production of ammonia would have to be made by electrolysis or some other costly way.

It was said that legislation might be necessary to set up the industry. The local bodies held that the industry should be financed on not less than 50 per cent. New Zealand capital. The deputation, which was introduced by Messrs E. P. Aderman (Government, New Plymouth) and T. T. Murray (Government, Stratford) included the chairman of Stratford County and president of the Taranaki Local Bodies’ Association (Mr B. Hutchen), the Mayor of New Plymouth (Mr A. Honor), the Mayor of Eltham (Mr F. Taylor), the chairman of Eltham County (Mr R. A. Grace), and the Town Clerk of New Plymouth (Mr W. A. Connor). Mr Hoiyoake’s Comment “I am not competent to make a judgement at this stage," said the Prime Mini-

ster (Mr Holyoake) after he had received the deputation "I informed them that the question was very much in its embryo stage and that it would be some time before the Government, Shell-8. P- . Oil Services, Ltd., and others concerned would be able to come to any definite conclusions and decisions.

“The Taranaki Local Bodies’ proposals will be studied by Ministers and submitted to the inter-depart-mental committee on natural gas and also to the consortium,” said the Prime Minister.

Mr Holyoake said that the use proposed by the deputation for the natural gas had been envisaged by the Government and by the earlier committee which made an interim report to the Government