CLOSING OF ONEKAKA

Evening Post, Volume CXI, Issue 78, 2 April 1931, Page 7

CLOSING OF ONEKAKA

CONCERN AT NELSON

THE POSITION REVIEWED

(From Our Own Correspondent.) NELSON, Ist April. At the City Council meotitig last evening Councillor Hugging, referring to tho unfortunate closing-down of the Onakaka Iron and Steel Works, said it was hardly realised what an important industry it was. It was the only industry in tho Dominion manufacturing pig iron, and it was of really National importance. Surely it was the duty of the Government to take care of such an industry, as a rise in tho prico of iron and steel was almost inevitable with the closing down of the works. Apart from that aspect there was the far-reaching effect of unemployment* He understood that Onakaka expended about £20,000 a year on coal, while ships carried the . products, and many other avenues of employment would be affected both directly and indirectly. From that point of view surely it ought to be a matter for the Government to consider seriously. With a great many men thrown out of work it meant a burden on the Unemployment Board. If the Government came to the financial assistance of the company it would probably not cost it as much as it would to keep those men thrown out oi' employment. Another point was that from now on New Zealand would lost the products of the company, and would be forced to purchase them abroad, which would all help to make the exchange position still worse. He did not think the Government had given tho representations which he understood had been made by officials of the company sufficient consideration. It was too valuable an industry to be dropped in the manner it had been. He suggested that the council should make representations asking the Government' to give the matter of assuring a continuance of this very desirable work its fullest and most sympathetic considoration. Tho matter affected not only the city and province, but the whole of New Zealand. If the works were closed down it might. be many years before they were started again. It jould well be imagined if another wovld. war occurred how valuable such an industry would be. Councillor Huggins then moved that the council urges the Government to give the fullest and most sympathetic consideration to the representations made by officials of the company with a view to keeping the works in being. Councillor Stringer: "Give them an order for the rails for the South Island- instead of taking them from Nelson." (Councillor Stringer was referring to the fact that the Government is removing rails from the Nelson line for use elsewhere.) "NATIONAL CALAMITY.'^ The Mayor (Mr. W. J. Moffatt complimented Councillor Huggins on his thoughtful and well-reasoned protest. Ho (the speaker) referred to the matter with a certain degree of diffidence as he was a foundation shareholder to a small extent in the company. He had lost what money he had put in, so was not now financially interested. Ho had advocated years ago that the : industry should be made a national one. ■He endorsed all that Councillor Huggins had said. It was a national eal- >. amity, and was a matter for the State. The Mayor went on, to say that he had been speaking to a director of the : company that day, and had offered to call a public meeting if it was considered anything could be done. He was only too willing to do anything to help the industry being restored. Councillor Huggins remarked that tho importations into the United Kingdom in 1926 of iron and steel amounted to £29,000,000. At the suggestion of the Mayor, Councillor Washbourn, who is interested in the company, made a few remarks. He doubted if a public meeting would serve any useful purpose. The matter had passed into the , hands of the debenture-holders, and until_ they decided what action to take he did not think a public meeting would be of any assistance. With regard to the Government, he thought it only fair and right to say that, although^ it had turned tho company down on its last appeal, the company had had on the whole very generous treatment. The company had been using Government c,o v tl and had only paid for it to a small extent, something over £20,000. Tho company had also received £14,000 in cash from the Government. The position was particularly unfortunate at the present time, because the company was producing between £70,000 and £80,000 worth of goods, all of which money must now go out of the country. There was nothing in the company's failure to make one pessimistic about another company's success. It was quite possible to succeed. The importations of iron and steel products in-the Dominion were in the neighbourhood of £2,000,000 per annum, so the possibilities were very groat. ' Councillor Huggins: "Would a resolution do any good?" Councillor Washbourn: "The Government turned us down flat." Councillor Washbourn repeated that the Government had treated the company yery generously up to the present . Councillor Watson said that every citizen deplored the position of the company, seeing, that it.had got past the experimental stage, and was on the fair road to success. Councillor Washbourn said there was some prospect of Australian companies taking over the works. The discussion then lapsed without any motion being put.