STEEL INDUSTRY.

Dominion, Volume 1, Issue 55, 28 November 1907, Page 5

STEEL INDUSTRY.

STATE AID IN NEW SOUTH WALES.

LITHGOW WORKS. ' Ny TELEGRAPH —PRESS ASSOCIATION—COPYRIGHT. Sydney, November-26. Correspondence»in connection with the applicatiori of the Lithgow iron-works' for financial assistance from the Government hal been published. The Government offered, subject to rati« fication by Parliament, to advance £70,00? at 4 per cent., lepayable in twenty half yearly instalments. . •: The Lithgow iron works have-been putting out pig-iron from blast furnaces since Maj last, but have not adequate steel furnaces to convert tlio pig into steel; According to a statement by State-Premier Wado, oil October 30, the undertaking lias "reached a stage 'where absolute success is assured, and the only difficulty is'the necessity of more steel furnaces to increase the outriut." To meet this necessity, the company that owns the .works applied to-the-State Government for assistance. fcrring further to this application, Mr. Wadf said"Under tho contract made between, tho Goveminent.and.the company, 18 months ago; the various Government departments were :lar(je consumers of iron from these works, and their prospective dealings with , the company - would run to ,£IOO,OOO in the next year or so. and perhaps there would lie. an increase." Moreover, tho schedule prices under the contract, at which the Government,' could secure" iron, -were actually.loss than.the Government? would pay ou the open market. It was urged that under these conditions.it was tho duty of j the Government to help towards the contiriua'nc« of . this important industry .at Lithgow, as th« Government was distinctly a gainer, on account of. the freight paid to the railways both in respect of products , from the - industrv; t and material conveyed to Lithgow. The', Government would be the loser'if the workii frera shut down. It was urged' that it would bo in the interests of. the whole community if the Government could, see its way to do, sometiling that would lead' to tho establishment of the iron industry in New South Wales •on a profitable basis." • The Federal Labour Party wishes to- go farther than State loans or bonuses;-it..wishes , t3. .nationalise: the iron and steel industry j but a motion to this effect was lost in the Federal House. On the other haud, the FedoraJ Government proposes Jo assist the ment of the industry, by bonus or: by tariff, and a Bill before the lloijse proposes to give a bonus .of i 1250,000 for,, pig-iron and puddled bar; <£50,000 -for galvanised iron, steel pipe, etc and itOOO for the first 500 .reapers and binders. According, to the Federal. Treasurer'a estimate, to completely, establish the industry would cost about one million, while Australia annually exports about seven millions in iron and steel. ... ■- ■ . ' !