Third Largest Iron Deposit in the World

Manawatu Times, Volume 63, Issue 59, 11 March 1938, Page 7

Third Largest Iron Deposit in the World

Onekaka Proposal Further Debated STATE CONTROL ATTACKED P©r Press Association. WELLINGTON, Last Night. Urgency was granted on the motion of the Prime Minister (Rt. Hon. M. J. Savage) in the House of Representatives to-day to the passing of the Iron and Steel Industry Bill, the debate on the second reading of which was continued by Mr. Coates (Opp.—Kaipara), who said he had listened carefully to the Government speakers during the debate to try to ascertain the reason for the proposed socialisation of this industry. The Minister of Mines, Hon. P. C. Webb, said Mr. Coates, had referred to the fact that past Liberal 1 Governments had been favourably disposed towards State control of the iron and steel industry. This might bo so, added Mr. Coates, but he would point out that, although these Liberal Governments had had ample opportunity of taking control, they had not done so. The plain fact was that the Government had made up its mind to socialise or communise—call it whatever one liked—this industry. Mr. Speaker here intervened, stating that during the debate there had been too much reference to the question of State or private enterprise. In future general references to this aspect of the debate -would bo ruled out of order a 3 “tedious reptition.” Continuing, Mr. Coates asked the Government to give a careful summary of the economic grounds for the establishment of the industry. He would also ask how much more would it cost to produce iron and steel in New Zealand than to import it. The Minister of Labour, Hon. H. T. Armstrong, said every argument that could be used in favour of the socialisation of hydro-electric and water supplies could be made to apply with equal force to the iron and steel industry. The Minister made reference to the part played by the Unemployment Board with different iron and steel companies. In November, 1935, said Mr. Armstrong, the board had carried resolutions to tho effect that the industry could be established and would assist in establishing a better balance in industry generally and also in creating employment. He continued that since 1914 they had been waiting for private enterprise to develop tho industry, and all that had been done was to erect a tin-pot” shed at Onekaka and raise a few thousand pounds. This could not possibly bo successful. The Minister added, moreover, that thousands of people throughout the Dominion had been “rooked” by company promoters, and all the shareholders he knew would have been only too glad to hand all their shares over to the Government if the Government returned to them half the money they had invested. Speaking of New Zealand’s general reluctance to reduce Britain’s steel market in this Dominion, the Minister asserted that Australia was taking an increasingly large proportion of New Zealand’s iron and steel trade and, consequently, 'British trade would be very little affected. The iron and steel deposits in New Zealand, he said, last three countries like New Zealand 500 years. There was no country in the world with better possibilities for the development of iron and steel than New Zealand to-day. Mr. W. J. Broadfoot (Opp.—Wai* tomo) contended there had been private capital available for the development of the industry, but the Government had made up its mind that the industry should be controlled by the State. He said that the people responsible for the development of the Pacific Steel Company were good citizens and did not deserve the gibes which had been hurled at them by supporters of the Government. Members of the Opposition were just as anxious as the Government that the resources of the country should be developed, but they differed on the method of development, which thejl held could better be done by private enterprise than State control. Mr. L. G. Lowry tGovt.—Otaki) said the Government had come to the conclusion that the time for “ diliy-daliy-ing” had ended, and it was its duty to get ou w r ith the job. Ho thought Onekaka was the correct site for the new iron aud steel works. If the industry was established there and when it got fairly into its stride, it would make Onekaka the seventh port in the Dominion. Rev. C. L. Carr (Govt. —Timaru): What about Timaru? Mr. Lowry: Timaru will have to look to its laurels when Onekaka gets going. The debate was interrupted by the adjournment and When it resumed in the evening Mr. S. G. Holland (Opp.—Christchurch North) said every right-thinking member of the House; iu fact, everyone in the country desired to see the natural resources of the Dominion properly developed, and he hoped to see the iron and steel industry developed on sound, economic lines. He also hoped that, whether it was established either under private enterprise or Stato control, it would be a thorough success. However, he added, he had no confidence whatever in the development of industry under State control. Referring to the operation of the proposed industry, Mr. Holland said the Minister’s proposals w r ere that the most easily made goods should be manufactured in New Zealand. If that were done, would competing manufacturers be prepared to supply the Dominion’s requirements in other articles?

Mr. J. A. Lee (Govt. —Grey Lynn) said the Opposition was arguing that every country on earth was to be allowed to supply New Zealanders with iron and steel except New Zeaand. He asked why New Zealanders should be denied the right to develop the largo deposits'of raw material in the country. He was in favour of the Bill, because he was a New Zealander and a socialist. The Opposition wanted socialism in their own way. They wanted guar-

anteed returns to a favoured group. After dealing with the value of the industry for defence purposes, Mr. Leo addod there were industries in New Zea« land which had to have metal, and they would be thrown out of action if supplies from overseas were cut off and I New Zealand ore had not been develop* ed. New Zealand had unrivalled resources and more electrical energy and iron ore than any other country in the Pacific, and those who had faith in the future of the country should be prepared to develop those resources. Mr. H. Atmore (Opp.—Nelson) said the measure concerned the third largest deposit of iron ore iu the world, and he held that the deposit should be developed by the State in tho national interest. He did not approve of handing over the petroleum industry, for instance, to private interests, and, considering the importance of oil and iron In the present economy of nations, he eosidered the State should undertake the development of both industries as well as others of a similar consequence. Mr. Morgan Williams (Govt.—Kaifr* poi) said that of tho £5,000,000 which it was estimated would be spent on the establishment of the industry over £4,000,000 would be exjicnded on imports such as plant, etc., and over the increase in the price of these imports the Government had no control. lie contended that there was an ample market in New Zealand for the product* of the plant it was proposed to establish, and he regarded it a fallacy to claim that the industry could not prove successful unless an export business were contemplated. The Opposition had stated that Britain might take reprisals against us if we reduced British markets by manufacturing our own iron and steel, but that she would not take such drastic action if a British firm were engaged in the development of the industry. Personally, he was of the opinion that the people of Britain would not care much who manufactured our iron and steel. Another point l® be remembered, he said, was the fact that Britain’s consumption of our pro* ducc must decline within a few years on account of the decline of Britain’s own population.

At 11.25 Mr. W. P. Endcan (Opp.— Parnell) moved the following . amend* ment: “That, while recognising the desirability of establishing on a sound basis a modern iron and steel mill in New Zealand and believing the best interests of this country will be served if such an establishment is conducted by private cnetrprisc, the Bill be referred back to the Government *‘l. For a further and more com- 1 plete investigation by an independent authority with a view to determining whether the industry can be successfully established in New Zealand. “2. To enable it to make available to Parliament and the country all reports, technical data and other relative information upon which the Government proposal to spend £3,000,000 of the people’s money in this industry is based.

“3. Further to explore the possibilities of the industry being established by private enterprise.” The amendment was defeated on a division by 43 votes to 18, and the Minister of Industries and Commerce, Hon. D. G. Sullivan, was replying to the debate at midnight.