AUSTRALIAN OILFIELDS.

New Zealand Herald, Volume LXVI, Issue 20424, 28 November 1929, Page 9

AUSTRALIAN OILFIELDS.

PROPOSED FOREIGN CAPITAL. OPPOSITION GROWING. [from our own correspondent.! SYDNEY, Nov. 21. Although the Premier of Queensland has expressed a determination to proceed with his proposal to amend the Petroleum A.ct so as to permit of the unhindered introduction of foreign capital, the agitation against this move, at first mildly expressed, is growing, and the result seems to be that the Queensland Government is hesitating. Since the proposal was first announced there has been published considerable propaganda, and perhaps it is having the desired effect. Then again, the Queensland Government- has now to face a different Federal Government—and a Labour Government at that, and the Labour Government does not seem to be in favour of foreigners. The whole oil policy of the Federal Government' is in the melting pot, and the Minister of Industry has promised that there will be a complete break from that followed by the Nationalist Party, though he lias been most careful not to indicate the direction he proposes to take. That may be taken as indicating that he does not know. The Federal Cabinet is certainly faced with a very difficult problem, for there is a demand for greater assistance from sfc in the matter of oil prospecting. The Government has already decided to relinquish payment of subsidies in certain directions —where the prospecting is being carried out on the Mandated territories. Therefore there is some reason for doubting whether it will be prepared to spend more money in assisting in the search on the mainland.

It has been said, with some justification it would seem, that no Government would be prepared to go to the country with an issue involving the introduction of foreign capital to exploit the potential oilfields. The spirit of the people on this question seems to be quite clear. One writer's argument seems to be to tho point. He said: —"It is inconceivable that American capitalists, or those of any foreign country, would desire to invest capital in any activity that is doomed to failure. Tho outside pressure, therefore, justifies tho promise that however sceptical many Australians may be rgarding tho existence of paying oil within the Commonwealth, oversea capitalists hold a more optimistic viewpoint."