PLANT AND SHIPS

New Zealand Herald, Volume LXXV, Issue 22985, 12 March 1938, Page 15

PLANT AND SHIPS

SIZE OF STEEL WORKS MINISTER'S EXPLANATION THE COST OF TRANSPORT [BT TELEGRAPH SPECIAL REPORTER] WELLINGTON, Friday .Detailed inquiries made by members concerning the Government's proposals for the establishment of the iron and steel industry in New Zealand were answered by the Minister of Industries and Commerce, the Hon. G. Sullivan, during the committee stage of the Iron and Steel Industry Bill in the House of Representatives to-day. Mr. R. A. Wright (Independent— Wellington Suburbs) expressed the opinion that the Minister was launching his barque on a hazardous sea full of rocks and shoals. Plant and machinery for the proposed steel works would be expensive, he said, and it would be continually going out of date. While tho commissioners who were to conduct the industry might be able to buy a "tomtit" plant more cheaply, added Mr. Wright, it would not be able to do the work. An industry of tho kind, if it was to work at full pressure, would be handicapped by the lack of market in New Zealand and an export market was out of the question. Taranakl Iron Sands Mr. S. G. Smith (Opposition—New Plymouth) asked why the bill made provision for an expenditure of £5,000,000 when Brasserf and Company, the English experts, in their second repprt, had estimated that tho works could be established for about £3,000,000. He drew attention to the Taranaki iron sands, which, he said, his father had successfully smelted many years ago, and stated that the Minister had not even informed tho House whether he intended to investigate the possibilities of those deposits Mr. Smith suggested that New Plymouth, which had adequate harbour facilities, would be an advantageous site for the establishment of the steel works, but expressed the opinion that the Government was rushing headlong into the proposal without due consideration of all the factors. Minister's Retort "It is regrettable that the member for New Plymouth cannot give some serious thought to this matter," said Mr. Sullivan, "instead of trying to entertain the House with a little tomfoolery." Mr. Smith: Don't be silly. You can't get out of it that way. "The member for New Plymouth is worried about the possibility of money being wasted," Mr. Sullivan added, "yet he suggests that the works should be established at New Plymouth without any proof that it is possible to convert these iron sands into steel." Replying to Mr. Wright's question with regard to the size of the plant the Minister said the one the Government had in mind had been recommended by Brasserts as suitable for the New Zealand market It would be the most economical for the production of those goods largely used in New Zealand. Transporting Ore or Coal Dealing with the cost of transporting the ore or coal to the works, Mr Sullivan said the Government had added Is a ton to the figure estimated by Brasserts, but if it were possible to secure a self-discharging vessel it would be possible to reduce the cost by Is a ton below Brasserts' estimate. Mr. S. G. Holland (Opposition— Christchurch North) • Will there be two ships or one? "One ship is what wc contemplate at the moment,." Mr. Sullivan replied, "but two will be required for the distribution pf the product. We do "not know yet whether they will be Govern-ment-owned vessels or not." LOCAL BODY MERGER LEGISLATION DEFERRED EVIDENCE NOT COMPLETED [BT TELEGRAPH —SPECIAL IMPORTER] WELLINGTON, Friday The Local Government (Amalgamation Schemes) Bill, which was introduced in the House of Representatives last year and referred to a special Parliamentary committee, will not be proceeded with this session. This was made clear by the Minister of Internal Affairs, 'the Hon. W r . E. Parry, in the House to-day. The bill, which provides machinery for the voluntary amalgamation of adjoining local bodies and for compulsory amalgamation if, in the opinion of the Government, local bodies are not prepared to submit a suitable scheme, was referred to tho special committee shortly alter its introduction last year. The committee heard a certain amount of evidence from local body representatives, but in the House to-day Mr. W. T. Anderton (Government —Eden), on behalf of the committee, reported that there was insufficient time this session to complete the hearing oi evidence. The bill was accordingly reported back to the House. Mr. Pi irry said the committee's action was in keeping with the forms of the House, but next session he intended to move the reintroduetion of the bill and the setting up of the same committee to complete the hearing of evidence.