AUSTRALIAN SHALE OIL

New Zealand Herald, Volume LXXIV, Issue 22853, 7 October 1937, Page 14

AUSTRALIAN SHALE OIL

PASSAGE OF LEGISLATION EXPLOITATION OF DEPOSITS [by telegraph —OWN correspondent] CHRISTCHiJItCH, Wednesday "Political football" was the description given by Mr. C. C. Davis, of Christehurcli, managing director of Davis Gelatine (N.Z.), Limited, to the treatment given in Australia to his project to exploit the Newnes shale oil deposits. The New South W ales State Government and the Federal Government are between them providing n loan of £500,000 for the project, and while he was in Australia a week ago Mr. Davis watched the passage through the Federal Parliament of a bill ratifying the Federal part of the loan. The bill eventually passed hv a small majority; but there was strong opposition by the Labour Party and the Country Party. The former attacked tho Government violently for not placing tho deposits under complete national control, and the latter feared that the production of oil would prevent a reduction of petrol prices. For a time tho issue occupied the most important columns of the Australian newspapers. It is hoped that when the deposits arc in production. 10,000,000 gallons of petrol a year will bo provided. Mr. Davis said yesterday that tho installation of plant would be begun within the next few months; but actual production of oil would not bo possible for two years or more.

The new company is to be known as National Oil Proprietary, and it is controlled by the Davis Gelatine interests.