STEEL INDUSTRY

Dominion, Volume 31, Issue 142, 12 March 1938, Page 12

STEEL INDUSTRY

Further Debate On State Scheme

BILL IN COMMITTEE Opposition Presses For More Information Although the second-reading debate on*the Iron and Steel Industry Bill occupied pie greater part of three tu sitting days, the measure was pul through its committee stage yesterday with comparatively little discussion. Several technical amendments were made in the Bill on the motion ot the Minister of Industries and Commerce. Hon. D. G. Sullivan, but the Opposition having moved its amendment to the ’second reading, made no effort to stop the passage of the Bin. There was some discussion on tin short title of the Bill, but the iemaining clauses were . not serlouslj contested. The Opposition called lot a division on the clause the Government to borrow £5,000,000 for the establishment of the industry, but finally allowed this point to pass on the voices. The House sat past t . normal hour for the dinner adjournment and the Bill was put though a I its stages and passed before the biea v was taken. , . Mr. W. A. Bodkin (Opposition, Central Otago) said there was no doubt that the mining privileges which were revoked by the Bill had been granted under Section 107 of the Mining Act. That Act gave the Crown the right to revoke licences on the payment of dennite compensation, and on that security debenture-holders had been invited to lend their money. The Crown, therefore, had a definite contract with two sets of persons to pay compensation in a prescribed way. The privileges could have been revoked under the Mining Act on the payment of compensation, but the Government had chosen to do that by a clause in the present Bill, and it seemed that the legislation was deliberately designed to discredit the value of the security the Government was anxious to acquire. The Attorney-General, Hon. H. G. R. Mason, said that since his second reading speech on the Bill he had had the opportunity of perusing the lease in question, and it did not appear to come under Section 107 of the Mining Act. It seemed rather to come under Section 81 of that Act. Mr. Bodkin reiterated that the lease was covered by Section 107. “’The Government desires to be honest and just in this respect,” said the Minister of Industries and Commerce, Hon. D. G. Sullivan. “I have been legally advised that the attitude we have adopted is exceedingly generous.” Commissioners’ Salary? ■ Mr. W. P. Endean (Opposition, Parnell) said that the whole scheme abounded in uncertainties. The Government should issue a prospectus giving full details so that the taxpayers who would have to foot the Bill would know just what they were being committed to. Mr. 11. S. S. Kyle (Opposition, Riccarton) said the country should be told how much the commissioners were to receive. Mr. D. W. Coleman (Government, Gisborne) : You are fishing. Mr. Kyle: Yes, I want to know how much they are going to get. Will it be £lOOO, £2OOO, £3OOO, £4OOO or £5000? Mr. J. A. Lee (Government, Grey. Lynn) : What do you think is a fair wage? Mr. Kyle: Well, “Uncle Scrim” gets £l5OO. and if an ex-parson can walk in and get that much for a little broadcasting, I should say that comparatively speaking this job would be worth about £20,000. The chairman of committees (Mr. E. J. Howard) : That is not in the Bill. The bon. gentleman must come back to the Bill. Mr. Kyle said that the people were entitled to know the rate of interest the Government would have to pay. Was it proposed to mortgage the whole of the country? It was a wild eat scheme from start to finish, and by tlie rate the Government was pushing the Bill through one would think it was a matter of life and death. The people were entitled to know the full facts, but up to tlie present they had been left more or less in the dark. The Bill should be held up until it bad been thoroughly investigated by the country. Plant and Machinery. Mr. R. A. Wright (Independent, Wellington Suburbs) expressed the opinion that the Minister was launching his barque on a hazardous sea full of rocks and shoals. Plant and machinery for the proposed steel works would be expensive, he said, and it would be continually going out of date. An industry,of the kind, if it was to work at full pressure, would be handicapped by the lack of market in New Zealand, and an export market was out of the question. Mr. S. G. Smith (Opposition. New Plymouth) attked why the Bill made provision for an expenditure of £5.000,000, when Brasserts. tlie English experts, in their second report, had estimated that the works could be established for about £3,000.000. lie drew attention to tlie Tariiliaki iron sands, which, lie said, his father bad successfully smelted many years ago. and said the Minister had not even informed tlie House whether he intended to investigate the possibilities of those deposits. Replying to Mr. Wright's question with regard to tlie size of the plant, the Minister said the one the Government had in mind had been recommended by Brasserts as suitable for tlie New Zealand market. It would be tlie most economical for tlie production of those goods most largely used in New Zealand. Cost of Transportation. Dealing witli the cost of transporting the ore or coal to the works. Mr. Sullivan said that the Government had added 1/- a ton to the figure estimated by Brasserts. but if it were possible to secure a self-discharging vessel it would be possible to reduce the cost by 1/- a ton below Brassert's estimate. Mr. S. G. Holland (Opposition, Christchurch North i : Will there be two ships or one? “One ship is what we contemplate at tlie moment.” Mr. Sullivan replied, “but ■ two will lie required for tlie distribuI tion of tlie prodflet. We do not know I yet whether they will lie Governmentowned vessels or not.”

An explanation why the Government did not negotiate with the companies interested in Onekaka was given by the

Minister of Finance. Hon. W. Nash, in reply to a* question by the Leader of the Opposition. Hon. A. Hamilton. Tlie Government, Mr. Nash said, had to face a body of men who had obtained an option for £15(>.()00 for something that tlie Government considered was not worth anything like £150.000. Tlie Government never at any time had tlie position of free negotiator. It could only negotiate at a figure over £l5O- -

• Every time we went to negotiate with them we were faced with the fact that this option had been extended,” Mr. Nash said. “That was not free negotiation.” Mr. Hamilton asked whether the Minister of Industries and Commerce could give tlie House some idea of tlie type of men he had in mind for appointment as commissioners.

The Minister said that so far as tlie technical operations were concerned that work would I>e carried out by Brasserts. who .would supervise tlie erection of Hie plant. Whether there would be one. two or three commissioners lie was unable to say at tlie moment. The three commissioners, if there were three, would lie in general control, except for the direction and control of policy by tlie Government. They would take the place of directors in a private enterprise. Tlie general idea was that these three men, one of a higher status than tlie others, should form a directorate.

“We have no names yet in mind in regard to the individuals,” Mr. Sullivan added. It would be desirable to get competent business men in this type of undertaking. If the Government could get them in New Zealand then he thought it would do that. At the same time he thought the Government should not tie itself to New Zealand, and if it were necessary the Government would not hesitate to go to Australia, or England. That, he added, was his own view.