THE PETROLEUM BILL.

Otago Daily Times, Issue 20235, 21 October 1927, Page 6

THE PETROLEUM BILL.

NOT TO BE PASSED THIS SESSION MANY INTERESTS TO BE SAFEGUARDED. (Feom Ooe Paeliauentaey Rkpoeteb.) WELLINGTON, October 20. Th« Petroleum Bill was reported from the Lands Committee to the blouse of Representatives to-day with minor amend meats, and after an interesting discussion was read a second time pro forma. In order to give time for further discussion throughout the country in regard to the various interests concerned it is not pro posed to pass the Bill into law this ■ session. When the Bill was reported from the committee. Sir Apirana Ngata (Eastern Maori) suggested that as the Bill dealt with Native lands in a very diastic way it should be referred to the Native Affairs Committee. Mr W. D. Lysnar (Gisborne) said the Bill should be referred ta the Statutes Revision Committee seeing" that extra ordinary powers were being taken undei it. Natives’ titles would be affected a considerable extent. The Prime Minister said he agreed that the Bill aid be sent to the Native Affairs Committee., At the same time he did not wish it to be understood that it was a very drastic measure in so far as land was concerned. None knew better than Mr Lysnar that it was not intended that the Bill should become law this session. Mr Lysnar: 1 did not know that. Mr Coates: I’m sorry. I thought the hon. member knew. Mr T. W. Rhodes (Thames) suggested that the Bill should go to the Mines Committee. Mr Lysnar: What has the Mines Committee to do with it? Nothing at all. Mr Coates said he would like an expression of opinion on one of two prin ciples contained in the Bill. It was the genesis of an arrangement under which capital could be invested in the explora tion for mineral oils in this country Mr Lysnar: We have got that now. Mr Coates: The difficulty is that capital is offerinv but is hampered with th« individual agreements that have to bo made There are thousands of settlers to be considered. We are trying for an organisation that will make it and easy to permit of exploration while at the same time conserving all the reasonable rights to those who own land. V\(e desire that the people affected should have <an opportunity of discussing the provision contained in the Bill. Mr H. E. Holland (Leader of the Opposition) said he could not understand why it was proposed to refer the Bill to a committee then not consider it this session. Mr Coates: It •is advisable that Mic landowners should have an opportunity of expression their opinion. It is a farreaching Bill, and should not he rushed through. Sufficient time should b e given to all concerned to study it. Mr Wilford (Hutt) said a measure of this kind was much required. It was far. reaching in its effect, and all the interests concerned should be enabled to make representations. , Mr G. J. Anderson (Minister of Mines) said the Bill had been asked for for many yeans, and had now been drawn up in the light of the experience of various countries. ‘‘ I am satisfied from what I have read and hoard that the only sure means of thoroughly testing this country for oil is by large capitalists,” Mr Anderson con tinned. “ Small capital runs out before the test is finished. I want the owner of land to be assured of his rights. In this Hill we have endeavoured to do this, and the object of introducing the Bill now is to give the country an opportunity of studying it and of giving evidence before the committees. During the recess it can bo considered by everyone. Our oil formations rim into 40,000 square miles.

Whether or not they have been exhausted by past interferences we can only tell by prospecting and by getting the advice of the best geologists, and the only way the capital can be found is by getting private capital.” Mr Anderson said the late Prime Minister had been approached on this question by the Anglo-Persian Oil Company, but the matter had not been gone on with. I They could not get an assured legal position without going to every owner of land. The object was to obtain those rights, so that the Crown could let them to people who were in a position to carry on prospecting thoroughly and secure the capital necessary. He was satisfied that no Government in New Zealand would expend the money that was necessary for prospecting for oil. Companies had spent three or four millions in finding oil in British Guiana, and three or four millions more before they were able to market' it. Large capital and great care would be needed here. Already there had been injudicious boring, and water had been let into one of the fields. They did not want that sort of thing. He wished t 0 have the Bill thoroughly nvestigated. The company that was prospecting' in the north here bad in its initial efforts met with a great deal of legal difficulty. In obtaining the necessary rights to boye over that area it desired it had to approach each individual owner. There were also difficulties with reserves and Maori lands. The Government, in any system it might adopt, wished to do justice to all parties, and at the same time test the country for oil. , , ~ The Bill was referred to the Native Affairs Committee and the Mines Committee after having been read a second time pro forma.