FERTILISER WORKS

Otago Daily Times, Issue 23351, 17 November 1937, Page 4

FERTILISER WORKS

HAWKE'S BAY'S PROPOSAL STATEMENT BY MINISTER (From Our Parliamentary Reporter' WELLINGTON, Nov. 16. In a statement to-day regarding the proposal to establish superphosphate works in Hawke's Bay, the Minister of Industries and Commerce (Mr D. G. Sullivan) pointed out that this: was an industry that could only be conducted subject to the issue of a licence. A number of applications for licences for further phosphate fertiliser works had been received, including applications from Hawke's Bay and North Auckland districts. A committee of the Bureau of Industries had visited Kawke's Bay, and was not satisfied at the time that the proposed works could secure a sufficient output to warrant the necessary capital expenditure. "It is generally agreed," said the Minister, "that works of less than 40,000-ton capacity would not be an economic unit, and it is estimated that in the case of works of this capacity operating on an output of 30,000 tons—that is, 75 per cent, of its capacity—the overhead costs of interest, depreciation, and obsolescence would be 5s a ton more than when operating at full capacity." The Minister added that the capacity of the five' North Island works was sufficient to meet normal requirements, though last season there was a congestion through orders being given much earlier than usual with the requirement of promp' delivery. Whereas a few months ago the Bureau of Industries would probably have declined a licence, the indications to-day were much more favourable. Changed conditions had necssisitated further conferences with the manufacturers, and a draft plan had been prepared for the establishment of works in Hawke's Bay, but definite decisions must await the outcome of the discussions. The matter must be considered from the viewpoint of the industry as a whole. Works at Napier would require an adjustment of deliveries from existing works- and co-operation between all the companies would become increasingly necessary to secure the benefits of a rationalised industry.