A STATE MONOPOLY.

Manawatu Standard, Volume LVIII, Issue 82, 5 March 1938, Page 11

A STATE MONOPOLY.

THE IRON INDUSTRY. CAPITAL PROVISION OF £5,000,000

Per Press Association. WELLINGTON, March 4. The establishment of an iron and steel industry in New Zealand as an absolute State monopoly is provided for in the Iron and Steel Industry Bill which was introduced in the House by Governor-General’s message. The investment of a capital sum not exceeding £5,000,000 is authorised and the industry will be financed through I the Reserve Bank. Under the provisions of the Bill three commissioners are to be appointed to administer and control the industry under the direction of the Minister of Industries and Commerce. The commissions will hold office during the pleasure of the Government, but none is to hold office continuously for more • than seven years without reappointf ment. r The sole right to mine for iron ore on any lands in New Zealand is to be vested in the commissioners. In this connection and throughout the legislation, the term iron ore is defined as including ironsands, so that the Government, through the commissioners, will have a monopoly right over the entire industry. The commissioners are empowered to carry on mining operations for iron ore anywhere in New Zealand and to establish and maintain smelting works. .They also control the manufacture if iron or steel and by-products for use by the Government or for sale. Authority is to be given for them to carry on other operations which in their opinion are ancillary to or necessary and convenient for the economic exercise of their powers. Wherever the commissioners think fit they may carry on coal mining ope-

rations or mining for any minerals required for the production and manufacture of iron and steel. Thev may construct, erect or acquire buildings, plant, machinery, tramways, ships and the like and they may purchase or otherwise acquire patents, licenses, concessions or other privileges. All mining operations conducted by the commissioners are to be carried on in conformity with the Mining Act, 1926, and' for the establishment of the industry in the Dominion, land may be taken under the Public Works Act with the usual provisions for compensation. It is provided that land may be acquired as sites for workers’ homes, shops, libraries, public halls and other public buildings which may be necessary. > FINANCIAL PROVISIONS. *ln order to provide funds for the establishment and operation of the industry, the Minister of Finance is empowered to borrow sums not exceed £5.000,000 on the security of the public revenues of the Dominion and bearing interest at a rate to be prescribed by the Minister. An iron and steel industry account is to. be established at the Reserve Bank while subsidiary accounts may also be opened. All moneys borrowed for the establishment and conduct of the industry are to be paid into the account at the Reserve Bank, and the expenditure incurred is to be paid out of the account in accordance with appropriation by Parliament. Mining rights held by the Onakaka Iron and Steel Co., Ltd. (in liquidation) are declared by the Bill to be revoked. However, the Warden’s Court, on application from either the Government or the company, is to determine whether the mining privileges so revoked would have been forfeited if proceedings for forfeiture had been duly taken. COMPENSATION CLAUSES. The Bill provides that no compensation is to be payable for the revocation of mining privileges which would have been forfeited if appropriate proceedings had been taken, but in respect of any other mining privileges which may be revoked under the legislation compensation is to be payable either by mutual agreement or on terms arranged by the Compensation Court under the Public Works Act. Special factors are listed which must be taken into consideration in assessing compensation, these embracing past expenditure and the future prospects of the present holders of mining privileges. The Iron and Steel Industries

Act, 1914, and its amendments, which provided for the payment of bounties for the encouragement of the industry BASED ON EXPERTS’ REPORT. In a statement outlining the provisions of the Bill, the Minister of Industries and Commerce (Hon. D. G. Sullivan) said that when the industry was established it would provide work for 1200 people, with an additional 200 in coal mines and 100 in transport. The Minister added that it would be about two years before full production was reached. The proposals were based on a report by A. H. Brassert and Company, London, following consultation by the Minister of Finance while he was in London. The firm was one of the foremost in the world to-day, and had advised the Government that the scheme it had submitted would enable the industry to be established and maintained on an economic basis, and it was proposed that the firm be asked to supervise the technical operations for a period of years until New Zealand had trained her own men to carry on such technical supervision. The production of iron and steel products, continued the Minister, had been based on requirements of the Dominion for sheet, bar and wire products and there was sufficient tonnage

in these items to form an economic basis for the industry. The annual consumption in the Dominion at present was approximately 100,000 tons of steel rails and certain sections of steel in smaller sizes, together with small billets and foundry pig iron, which would also be produced. It. was anticipated that the initial production of the plant would be about 85,000 tons of finished steel a year. The Minister added that it would still be necessary to import 70,000 to 75,000 tons of steel a year into New Zealand from England and Australia. A reasonable opportunity is to be I given for a full discussion of the Bill in the House, but it is not proposed]

to send it to a committee. Rt. lion. G. W. Forbes: Do you intend to put it through this session ? The Prime Minister : Sure thing ! The Bill was read the first time.