OIL BORING IN N.Z.

Gisborne Times, Volume LXVI, Issue 10413, 21 October 1927, Page 5

OIL BORING IN N.Z.

PETROLEUM BILL BEFORE HOUSE. ' v yP;- ,

PRIVATE MONEY NEEDED

LAND RESTRICTIONS BLOCK

THE,WAY

GOVERNMENT, WANTS TO MAKE LEGAL COURSE EASIER

‘■'(Special"to" the 'Tillies’.') WELLINGTON, Oct. 20. There was an important' and interesting discussion, in the House of Representatives this afternoon on the Petroleum Bill which was reported from the Lands Committee with a few minor amendments. • ••

■ Sir A. Ngata suggested that _ as the Bill dealt with Native lands in a drastic way it should bb referred to the Native Affairs Committee. Mr W, D. Lysnar said the Bill should he referred to the .Statuses Revision Committee, seeing that extraordinary powers were being taken under it. Native titles would, be affected to a, considerable extent.

The Primp Minister said he agreed that the Bill should he sent to the Native Affairs Committee. At the same time he- did not wish itf to he understood that it was a very drastic measure, in so far as land was considered. None knew better than Mr Lysnar that it was not intended that the Bill should become law this session. v ... ,

Mr Lysnar :’ I did not know that. Mr Coates: Pm sorryj I thought the hon. member knew.

,sfr T. W. Rhodes suggested that the! Bill should go to the Mines Committee.

Mr- Lysnar : What has the Mines Committee to do with it? Nothing at all!

Mr Coates said _he would like an expression of opinion on one or two principles contained in the Bill. It was the genesis .of an arrangement under which capital could be invested it! exploration for mineral oils in this country. ? Mr Lysnar: We have got that now.

Mr Coates: The difficulty is tlm capital' is offering, but is hampered with the individual agreements that have to be made. There are _ thousands of settlers to be considered. We are trying for an organisation that will make it possible and easy to permit of exploration, while at tho same time conserving all the reasonable rights, of those who own the land. Mr H. E. Holland, Leader of the Opposition - , said lie could not understand why it was proposed to refer tho Bill to a committee, and then not consider it this session. Mr Coates: It is advisable that the landowners should have _ an opportunity of \ expressing their opinion. It is a far-reaching Bill and should not be rushed through. The Hon.- Mr Anderson, Minister of Mines, said the Bill had been asked for for many years, and had now been drawn up in the light of experience of various countries. “I am satisfied from what I have "read and heard”, he said, “that the only sure means of thoroughly testing this country for oil is’ by iarge- capitalSmall capital runs out before the test is finished. I want the owner of the land, to he assured of his rights at the same time. In this Bill we have endeavored to do this and the object of introducing it now is to give this country an opportunity of ' studying it, and 1 _of giving evidence before the committees. During the recess it can he considered by everyone. Our oil formations run into 40,-00-0 square miles. Whether or not they have been exhausted by pastinterferences wo can only tell by prospecting and by getting the advice of the Best geologists, and the only way the necessary Capital can be found is by getting private- capital.” The late Prime Minister, he added, had been approached on the question by the Anglo-Persian Oil Co., but the matter had not been gone on. with. They could not got an assured legal position without going to every owner of land.' The object of tlio Bill was to obtain these rights so that the Crown could let them to people who were in a position to carry on prospecting thoroughly and secure the capital necessary. Ho was satisfied that no Government in New Zealand would expend the money that was necessary for prospecting for oil. Companies had spent £3.000,000 or £4,000,000 in finding oil in British Guinea, and then . £3,000,000 -or- £4,000,000- more- before -they-were l able to market it. Large capital and great . care would be needed here. Already there liad been injudicious boring, and water had been let into one of the fields. They did not want that sort of thing. He wished to have the Bill 'thoroughly investigated. The company that was prospecting- in the north here had in their initial efforts met with a great deal of legal difficulty in obtaining the necessary rights to tore over the area they desired. They had to approach each individual owner. There were also difficulties with reserves _ and Maori lands. The Government, in any system' it might adopt, wished to do justice to all parties, and at the same time test the country for oil. The Bill was referred to the Native Affairs Committee and the Mines Committee, after having been read a second time pro forma.