"SHEER MOONSHINE"

Evening Post, Volume CXXV, Issue 58, 10 March 1938, Page 22

"SHEER MOONSHINE"

NOT RETALIATION

The Minister of Lands (the Hon. El. Langstone) described as "sheer moonshine" the suggestion that the iron and steel industry was to be established by way of retaliation because Mr. Nash had not got his own way in London. Ho claimed that the attitude taken up in regard to the proposals of Pacific Steel was the only attitude that an honourable Minister, with the welfare of liis country at heart, could have taken up.

Mr. Langstone reviewed in detail the operations of Pacific Steel and described as financial legerdemain the methods by which the four men comprising "the little gang" who <held, the option on Onckaka had, while keeping twenty-six shares, converted an

outlay of £100 into £45,100, which included an Unemployment Board grant of £3100 and a loan of £1500 Jrom a Timaru group. The sum of £15,000 was paid for the cost of the option, Brasserl's report cost £6750, of which no doubt the Government had paid a" good part, legal expenses ac- , counted for £1500, and salaries, wages, and travelling expenses amounted to no less than £12,000. That was the concern for which Opposition members were trying to bolster up a ease.

The amount that the Government was to have given the company if it had got going was £696,500, continued Mr. Langstone. The four men were selling an option that was worth only £150,000 in New Zealand for £300,000 in London, and in addition they were to get exchange amounting.to £75,000. .Thus they would get £150,000 plus £75,000, a total of £225,000. Out of that they • had spent something over £30,000.: It was doubtful whether.the option was worth £i50,0u0 in the Qrst place. ■ Naturally any responsible Minister for the Crown, on the facts available and.knowing what had taken place in the past, would say that the Government was not going to allow New Zealand securities to be hawked about abroad, not with the idea-.of establishing the industry but with tht primary motive of profiting the promoters as quickly as possible and allowing them to get out of the concern.

There was a great need for an iron and steel industry in New Zealand, "said Mr. Langstone. It was necessary to-balance the population so that-the Dominion would not be altogether dependent upon imports for everything other than primary products. He sympathised fully with the Onekaka com-' pany and the debenture holders, but he had very little sympathy with Pacific Steel, because all those concerned had done was to "try 'to work the oracle." The State was better able ,to find the capital and organisation required for such an undertaking than was private enterprise. That did not mean that the Government was antagonistic to private enterprise' it was only when private enterprise "broke' down and was unable to carry on that it was necessarily the duty of the.State to step in.

ACTION APPROVED. Mr. K. J. Holyoake (National/ Motueka) said the deposits of iron, 'lime, and coal were in his electorate, and

ever since he entered Parliament he

had urged their development. He was glad something was about to be done. The proximity of the minerals' and coal to good harbourage made them readily available. In addition, the deposits would not have to be mined; they could be quarried. 1 Mr. Holyoake said he hoped -the works would be established at Onekaka. .That was the correct location land expert opinion could be-produced Ito show that it would be most economic

cal to do the work at Onekaka. The whole House was. agreed that the industry should be established, Mr. Holyoake continued; it was the method ' that was in doubt. • He was, not surprised that ithe Government'had decided on State 'enterprise, but,, ljke other Opposition members, he believed ,the nation could best be served by I private enterprise. The Government I seemed fearful that private enterprise would make a profit, but that would be better than the State making a loss and, in any case, the money gained . would still be within the nation. Usually when,ihe State entered industry, said Mr. Holyoake, it waited until private enterprise had proved the ground. The Government claimed private enterprise had failed all along the line with the industry, but from the information he had he believed private enterprise had been strangled. ■ To say that private enterprise had failed was parallel to a statement thaf a murdered man had failed to live. After discussing the changes that had taken place in the industry, Mr. Holyoake said that the Minister _ of Industries and Commerce had said that private enterprise had demanded assistance, but private enterprise' had offered to develop trie industry without financial help. Pacific Steel had never been given a chance and it was apparent that the Government had never intended that private enterprise should succeed. From information he had, private capital would have been available. • ,

"AN UNHOLY MESS."

The' Minister of Mines (the Hon. P. C Webb) expressed surprise at the Opposition trying to justify the action of the company during the last few years. He recalled htfw in 1914 the late Sir Joseph Ward, the Kt. Hon. G. W Forbes, and Mr. S."G. Smith and other Liberals had advocated the principle of State ownership, of . . iron resources. They trusted private enterprise for twenty-five years, and e gave it every possible encouragement, •: and during that period it made an unholy mess of the iron industry. The Min"is'ter analysed the division list of the 1914 debate. No country could beicome great if it allowed valuable deposits of iron to lie undevdoP«l-K ' was estimated that there were 60,000,000 tons of millable ore, and that.it would ' last for 500 years. What to the i Government proposing to do? In the name of the people of New Zealand, it said that these valuable deposits should be retained by the people. The last few years of juggling with options were a reflection on the Government that allowed such things to continue. The Government was not flinching from its job. It had the best , advice, and it would be directed by experts in every step it took. , Mr. W. P. Endean (National, ParHell): How many experts? Mr. Webb: We have quite a number, apart from our own experts. The Government was giving expression to the ideals of the great .Liberal thinkers of other days, added the ■ The debate was interrupted when the Finance Bill No. 2 was introduced at 10 p.m. and was adjourned on the motion of the Rt. Hon. J. G. Coateij (National, Kaipara) when that Bill had [been disposed of.