PHOSPHATES.

Otago Daily Times, Issue 18999, 23 October 1923, Page 11

PHOSPHATES.

INCREASING USE. DEVELOPMENT IN AUSTRALIA AN® NEW ZEALAND. (Fsom Ode Own Correspondent.) SYDNEY, October 11,'.. Some indication of the enormous increase) in the use by farmers in Australia and New Zealand, more especially the former, of the phosphate obtained from Ocean Island and Nauru is given by Mr Pope, the Australian member of the British, Commission (representing Australia, New Zealand, and Great Britain) which has controlled the deposits since 1920. Mr Pope is nojv visiting Australia in regard to the construct ion of superphosphate works near Hobart, and he will shortly visit New Zealand and consult the Dominion Commission in Auckland concerning important developments which are contemplated there, “Australia," says Mr Pope, “is our best customer, and to give some idea of th« manner in which the industry has progressed it is interesting to note that 10 years ago shipments from the two islands to Australia amounted to only about to 25,000 tons per annum. In the first year of the commission's control—July 1, 1920, to June 30, 1921 —no less than 265,000 tons was delivered into the commonwealth. Tina year already 280,000 tons has been booked, and it is confidently expected that by JuneCO next, when the year closes, the ship-' merits will have reached 300,000 tons, which represents roughly 600,000 tons of super-’ phosphate. The demand in New Zealand’ nas rapidly increased. For the first year of the commission’s operations the dominion was not able to take her full quota of 16 per; cent, of the total output owing to the fact that she had unexpired contracts with other 1 phosphate islands. These contracts .naridf now been completed, and New Zealand i£ now able to take her full proportion,next year will probably require about ?5,t300 tons.’’ ; -;.D

“It is now two years since Great Britain,’' took any phosphate from these two islahdtr The reason, 1 think, is because the great distance, some 13,C00 miles between the! islands and Great Britain, makes it unprofitable for her to import supplies from Nauru and Ocean Islands. The freight would actually cost 50 per cent, more than the value of the phosphate at the islands; that is, supposing the phosphate -toi|jbo worth £1 a ton, f.0.b., at Nauru the freight to the United Kingdom increased this by, 30s. I think that Australia and New; Zealand constitute the natural outlet tor, the phosphate from these islands. When the commission took over the delivery price for Nauru and Ocean Island phosphate to the Eastern States of Australia ranged from 75s to 80s per ton. That price has been reduced by stages tb per ton, which rate came .into force on July lof this year. When the war broke out the ruling' delivery price to Australia was 46s 3d per ton to tne Eastern States.. Now the price is 46s per ton to all thff Australian States, so that the farmer living, say, in West Australia, is not penalised because he lives a greater distance from Nauru and Ocean Island, than the farmer in Now South Wales. The Governments; concerned do not look for profit. ‘Alt they require is 6 per cent, on the money invested and the establishment of a sinking fund which will redeem the £3,500,000. purchase price at 6 per cent, in 50 years.' The idea of the Nauru Island agreement and the aim of the commissioners is , to' bring the price of phosphate down as low’ ns possible to the manufacturers in the partnership countries, and consequently re-, duce the price of superphosphate to the farmers. ;