FOREIGN AID.

Otago Daily Times, Issue 20875, 15 November 1929, Page 12

FOREIGN AID.

QUEENSLAND OIL HELDS. * COAXING CAPITAL. " AMPLE SAFEGUARDS. , : (From Ouk Own Correspondent.) ■ ’ SYNEY, October 14. Immense national importance attaches to the Bill that .has just .been introduced into the Queensland Assembly to, amend the Petroleum Act, which will provide for the admission of foreign capital to assist in the search for oil. Under the existing laws,, designed to prevent foreign capital from obtaining anything like a controlling interest in the oil fields, this is not possible, and there are some who say that, if the Americans were permitted to enter, oil would have been discovered long ago; That seems to he an unjustifiably optimistic view to take of the Queensland possibilities. Nevertheless, the move now being made is of great significance. In introducing the Bill the Minister of Mines (Mr E, A. Etherton) said that ample safeguards were provided. He explained that under the measure a company registered under the British Companies Act of 1895, or. the Companies Act, 1863-1913, which were Queensland Acts, would be qualified to apply for, and to hold, a permit or lease if* the occasion should arise. It was proposed _to increase the term of the' permit, including extensions of from four to six years. The conditions were modified to admit of geological or ■ geophysical examination, to the satisfaction of the Minister, an area held under permit being taken into account for the purpose of. allowing exemption from drilling operations. It has been officially pointed out that that the present Act was considered too restricted, and that- the new legislation will assist in the search for oil, as more capital would be made available than would otherwise bo the case. Approximately £1,000,000 of Australian money Las already been spent in the search for oil in Queensland. - One reis that geologically the Maranoa Basin, with an extent of 800 by 400 miles, has been ’ definitely proved to be an oil-bearing territory. To this both the geological advisor to the Commonwealth Government (Dr Woolnough) arid Mr L. C. Ball, deputy chief geologist in Queensland, have not surprising, therefore, that at this interesting stage, here should be a strong urge • from certain quarters, in favour of an amendment of the Act to allow American interests an unrestricted field.

British policy has always 1 recognised the commercial and Imperial importance of oil. in 1884 Queen Victoria, by special Order-in-Council, prevented American companies -from entering Z nd iu gr - anted a virtual monopoly to the All-British Burma Oil Company. Eater, the British Government went into the oil business itself by becoming a partner of the Anglo-Persian :Oil Company, and an iraporant part of its foreign policy relates to the diplomatic relationships upon which the company’s operations depend.- • Canadian - rejmhtiona provide that * f any company acquiring by assignment or likewise a-lease under the provisions of these regulations. « afc all tunes be and remain - , a British company registered in Great Britain or Canada'and having its prinS!£ al ‘ °- f . busin «» within his Majesty's dominions, and the chairman of the said company, and a majority of directors shall at all 'times be .British subjects, and: the company shall not become controlled directly or indirectly by foreigners or a foreign corporation.” A he , Commonwealth Government has lam « down that no mining- license or wealth^ 11 bS granted b y tbe Commonwealth to any company unless at least n«°’l h ia d l 0f J h . e . share ' s in tbe company Bi-ltUd!* h K- B r tlsh '^ rn or naturalised British subjects. ■ The Commonwealth has, however, no power over the granting of oil rights in the States. Up to the present the. Queensland Petroleum Act has required that every shareholder of-a company operating shall he Britishbprn or a naturalised British;subject, but the Minister has power to grafit certain exemptions by which, if he dared to take the responsibility, American interests - could- be admitted. The check on his action is that probably no one Minister would dare to be saddled with the responsibility of. selling out'to other 7“™ interests what has the possibility of becoming Australia’s greatest tn P A • in . dUStr ‘ V ’ and of the Empire s present weakness in being ab c to produce within her own bounds only some 3 per cent, of the world’s oil supplies.

The excuse put forward when the former Premier of Queensland (Mr M Cormack) tried to persuade his Cahi net to agree to an amendment similar to that now proposed, was that sufficient capital was not forthcoming in Australia tor 'he development of Queensland’s oil possibilities. The fact that such capital has been steadily forthcoming upset that contention, and, once the news leaked ? U j xv , ou * cr - r was so prompt and so loud that the amendment was dropped before it reached the floor of the House, r-vep so, it is not contended by Australian oil companies that American technical experience and assistance should not be enlisted. But it is contended that nothing has happened that would justify forfeiture of the right of control by Australia of her own oil industry; such as is tlireatsacd by the present amendment. Australian capital and energy having carried the search to the present stage, it is urged on behalf of the operating companies that Australia is entitled to the fruit of the work. Hopes are entertained that even within the next three weeks one of the bores sunk near Roma, from which a definite crude oil has been obtained, will prove productive. Other operations to obtain commercial production are- being continued. ■

Meanwhik mteresfis being focussed on the Gippsland oilfield in Victoria, ot which bo little has been heard for many rears. The Victorian Minister of Mines recently inspected the area with the object of determining the extent of (to\ eminent assistance in boring operations He returned enthusiastic, convinced that in the Gippsland lakes distnct there were the best indications of oil in Australia, not excluding the Roma field. Nowhere else in Australia, he said had crude oil been found. One could not be other than satisfied with the prospects. The companies that were operating would receive every assistance the Government could give them.