NEGOTIATING ON STEEL

Press, Volume CVI, Issue 31141, 18 August 1966, Page 18

NEGOTIATING ON STEEL

Private Firm May Make Rod (New Zeiland Press Association) WELLINGTON, August 17. Negotiations for the establishment of a wire rod mill at Wiri, rather than Glenbrook, were taking place between New Zealand Steel, Ltd., and Pacific Steel, Ltd., the Minister of Industries and Commerce (Mr Marshall) told Parliament today.

At question time, Mr Marshall said the overseas consultants to New Zealand Steel had said that in their opinion, it would be more economic to establish a wire rod mill at Wiri and avoid duplication of plant at both Wiri and Glenbrook. Negotiations were taking place on a basis which would give New Zealand steel a substantial interest in this branch of the industry and which would result in the majority of the Pacific shares being New Zealand owned and controlled. Mr W. W. Freer (Opp., Mount Albert) asked Mr Marshall if it was correct that New Zealand Steel was proposing to give to a privately owned steel mill the right to manufacture and market a wide range of steel .bars and rods which were originally to be produced by the WaiUku plant. Mr Marshall replied: “The short answer to that is no.” Mr R- J. Tizard (Opp., Pakuranga) asked Mr Marshall were arrangements being made for the New Zealand Steel Company to provide fin-

ance by way of a loan to the Pacific Steel Company.

The Minister replied: “There is no proposal for any loan to be made by New Zealand Steel to Pacific Steel. Discussions are taking place at present on the advice of the consultants to New Zealand steel which may result in New Zealand steel obtaining an interest in the equity capital of Pacific Steel.”

In reply to a supplementary question, Mr Marshall said that the funds for the interest in the equity capital of Pacific Steel would largely come from New Zealand Steel, which in turn would come from the people of New Zealand.

“As soon as negotiations are complete I will make a public statement,” the Minister said.