IRON AND STEEL

Otago Daily Times, Issue 23882, 9 August 1939, Page 6

IRON AND STEEL

ESTABLISHMENT OF INDUSTRY THE £5,000,000 FOR FINANCE QUESTION IN PARLIAMENT 'From Oun Parliamentary Reporter) WELLINGTON, Aug. 8. Information as to the source from which it was proposed to obtain the £5,000,000 required to finance the establishment of an iron and steel industry in New Zealand was sought by Mr C. A. Wilkinson (Independent, Egmont) during the Financial Debate in the House of Representatives to-day. "The Minister of Industries and Commerce (Mr D. G. Sullivan) has taken power to borrow £5,000,000 to start an iron and steel industry," said Mr Wilkinson, "but he has never said where he is going to get this money from." • An Opposition member: From the Reserve Bank, of course. Mr Wilkinson: The directors of the Reserve Bank say in their report. No, more credit."' No provision had been made for working capital, said Mr Wilkinson. This would take another £1,000,000. Interest. depreciation, overhead charges, and sea freight had also to be taken into account. It would cost £1.728.000 a year to run the industry but on a statement recently made by the Minister as to the prospective production the annual revenue would be £1,240,000. This would leave a deficit of £488,000 a year. The Government was not quite sure where it was going to get the iron ore and was scratching holes around the Taranaki ironsand to justify the establishment of the industry. Mr Sullivan: The House and the country will get the whole report. Mr Wilkinson: Will you tell the House where vou are going to get the £5,000,000?