IRON AND OIL INDUSTRIES.

Greymouth Evening Star, 7 December 1911, Page 3

IRON AND OIL INDUSTRIES.

The Hon. J. A. Millar, speaking it Wakari on Friday night, was a,sked to state the*Govevnment policy with regard to the iron and oil industries of the Dominion. The Minister stated that for the last ten years the great deposits at Parapara had been held under lease, and endeavors had been made to float a company to work those deposits. The Government desired to have established in this country an iron industry. However, the local market for bar iron and rails would not justify the Government or anyone else going into the business unless they could get a export market. Under the Government's proposed Bill, any company (which would take it up under the terms imposed) had to expend in the first two years £IOO,OOO and within the subsequent two years another £IOO,000; that was, £200,000 within fbtu years of the passing of the Act, on the establishment of works, and no re turn from the State was given except a bonus of £30,000 on the first 30,000 tons of piu; iron or ingot steel manufactured, and £20,000 for the first 20,000 tons of bar, rod, angle, or other iron or steel manufactured. Then for the first 10,000 tons of steel or plate iron there was a bonus of 20s per ton offered, and for the first 5000 tons of fencing wire the bonus was 25s per ton. At least a quarter of a million would be required to be invested to develop the deposits, and employment would be given to one thousand to five thousand people. Then, at the end of fifteen years, by giving two years' notice, the State had the right to resume the whole of the works at a fair valuation and if the company was allowed to go pn for th© full term of forty years the whole of the works became the property of the State without payment oi any' compensation. The only condition was that if the lessees supplied all that the Government required in the way of rails, girders, or iron or steei bars made from New Zealand iron ores, the Government would purchase such from the lessees at the London wholesale prjpe, plus freight charges on such goods from Lyndon to the Do minion. As he stated previously, it was doubtful if anyone would be got to take up the deposits on the terms mentioned. With regard to the oil industry, all the Government was committed to was a bonus equal to the freight per gallon of oil imported to the from Great Britain or America.