BELOW ESTIMATE

Evening Post, Volume CXXVI, Issue 56, 3 September 1938, Page 10

BELOW ESTIMATE

ORE AT ONEKAKA

INDUSTRY'S FUTURE

ALL PRECAUTIONS

The Government's determination to ensure that the iron ore deposits at Onekaka would warrant the establishment of a State iron and steel, industry, authority for which at an estimated cost of £5,000,000 was given by Parliament last session, was emphasised by the Minister of Industries and Commerce (the Hon. D. G. Sullivan) during consideration of the vote (£42,111) for the Iron and Steel Industry in the House of Representatives yesterday afternoon. Mr. Sullivan intimated • that the original estimates of the amount of ore available had not been made good and that every precaution was being taken to see that , the enterprise would be conducted efficiently and economically. The discussion arose on an item for £38,300 for survey and preparatory work at Onekaka. IMPORTANCE TO DOMINION. "What exactly is being done at Onekaka?" asked Mr. W. J. Broadfoot (National, Waitomo). "From newspaper reports there seems to be some doubt as to the amount of iron ore there. Surely we have not got as far as to come to any conclusion, as to whether there is a sufficiency/ of . ore or not." He wondered if the ; right methods of ascertaining the . quantities of ore available were being ' used. According to the newspaper ■ reports a system of tunnelling was ! being followed, but he was informed '. by competent men that the right . method was 'to bore. The question of whether the ore was at Onekaka was of immense importance to • the Dominion. The Leader of the Opposition (the . Hon. A.: Hamilton) said that personally : hft thought'that it was wise to take N every precaution before committing [ the country to an expenditure of £5,000,000. He would not mind spend- : ing £100,000 to make sure of the < position. , ' The'^Minister said that Mr. Hamilton ! had put the position very sensibly. It was a matter of common sense to ■ make perfectly sure of the position before committing the, country to any obligation. Previous reports estimated that 100,000,000 tons of ore were available, and the Department of Industries and Commerce had decided to carry " iout tests before- taking definite action. , So far as the work had gqne—and It was-altogether too early to draw -a ; worth-while ; conclusion —it seemed that the rosy estimate of' 100,000,000 tons of ore 'was excessive, and boring operations were being carried out to ■ ascertain the true position, the Minister continued. The Government had availed itself of the best advice, and the results indicated that the original estimate would" not. be made good. Mir. Broadfoot: It can be much less and yet be quite feasible?. Mr. Sullivan: The hon. gentleman is correct If we had 50,000,000 tons of ore we would, be very well off and there would be nothing to prevent us from going ahead. If we had 20,000,000 tons we could still have an industry. - Mr. S. G. Holland (National, Christchurch North): When will you know that? CAPITAL UNTOUCHED. Mr. Sullivan: Probably .about April or May we will have a fairly good indication as to the amount. We are not touching the capital in the mean- ' • time. That will remain intact until ' we are sure we have the material for the industry. Mr. Hamilton: You have not raised the capital yet? Mr. Sullivan: We' have not done ,' anything- about it at all. The preliminary expenditure was , being met out of the Employment Promotion Fund, the Minister continued. He was confident that there would be sufficient ore available to start an iron'and steel industry,, but he would hot ask the Government and , "the country to embark on the project before he was sure that, there were sufficient quantities of iron ore -and coal and • the other necessary things to make an efficient and economic industry that would be worth while to the Dominion. Mr. Sullivan said that the Govern- . ment would move as rapidly as possible, but at the same time as surely - as was necessary, and so far'as possible it would avoid making mistakes. He had been disappointed at the delay to the work associated with the project, but it had been necessitated by the discovery that the estimates of the quantities of ore available were not being made good. ' If the quantities of ore were not sufficient for an industry the Government might have to reconsider the proposal to establish works at Onekaka and whether it was advisable to < build a.town there. On the question of developing the Taranaki iron sands, the Minister said the trouble, was that there was no proved access as yet for extracting the ore from them, but the position was being examined closely.