OREPUKI SHALE WORKS

Otago Daily Times, Issue 21544, 16 January 1932, Page 17

OREPUKI SHALE WORKS

PRODUCTION OF PETROL LACK OF GOVERNMENT ASSISTANCE • (Special to Daily Times.) INVERCARGILL, January 15. “ The Government offers little encouragement to local enterprise,”'declared Mr A. H. Mackrell to-day to a reporter who sought information regarding the Orepuki shale deposits. Mr Mackrell, who was one of the prime movers in the proposed formation of a development company which obtained an option over the shale rights some . 18 months ago, said iti was then proposed to take over the whole undertaking of the parent company. Difficulty was experienced, however, in raising the necessary capital owing to the financial stress, but a more important reason why the proposed company did not exercise its option lay in the fact that Dr Marsden, of the Mines Department, Wellington, who reported upon the project, considered that the prices at which crude oil could be brought to the Dominion from foreign countries would render it practically impossible for the company profitably to open up the Orepuki works and produce oil at a price on a level with that charged for petrol from abroad.

“ An important by-product of the industry at Orepuki would have been paraffin wax,” continued Mr Mackrell, “but the price for that is now such that it could not be payably extracted. Petrol, which would be the principal product, can be imported into New Zealand from foreign countries at a little over 4d per gallon, and the cost, including 8d and a fraction for Government tax and landing charges, is about Is per gallon. The public, however, is paying 2s and over for every gallon, and the importing oil companies are netting a very handsome profit.” Mr Mackrell emphasised that the difficulty so far as profitable exploitation of the Orepuki works was concerned could be overcome only by the Government either protecting or subsidising the local industry to ensure its successful operation.