IRONWORKS SITE

Hokitika Guardian, 3 June 1938, Page 3

IRONWORKS SITE

ONEKAKA MOST SUITABLE, ESTABLISHMENT COST, £5,000,000 '(Per Press Association —Copyright). - WELLINGTON, June 2. The Hony’D. G Sullivan (Minister hor Industries and- Commerce) to-day , announced that the Government, after '• considering evidence and numerous representations, 'and in particular the views of overseas experts,J ‘had decided that the most economical site lor the establishment of the 'State iron and steel ldorks at ‘Onekaka. He added that he-.had requested the Hon. Rv/Semple, Minister - for (Public Works, to take the- necessary steps under the Public. JWorks ; Act ot notify-affected persons, that the Government had decided to. acquire certain lands at Onekaka for the purpose of carrying out the provisions of the Iron and Steel Industry Act. A notice to this effect appears in to-day’s Gazette. It is .estimated that the capital cost involved in the establishment of the irqn-and steel-industry at Onekaka will reach at least £5,000,000. That was the figure , indicated in Parliament when the -necessary legislative : authority was/ being - discussed. » < ‘ jjjbe first' major work- will, probably be the construction of a wharf for handling the big consignments of plant

and equipment which will be necessary. Oil wharf equipment and ships alone the capital, expenditure proposed is £400,000. This sum will income the purchase of a suitable shallow-draught vessel to be used in the transport of coal from the West Coast mines to Onekaka. Other items of capital expenditure are: Plant and installation, £4,000,000; land, £50,000; establishment expenses, £215,000; working capital, £300,000. Tentative plans for the spread of construction involve the following figures: —1938, £750,000; 1530 ' £3,000,000 ; 1940, £1,250,000; total, £5,000,000.