PETROLEUM BILL AN URGENT MEASURE

Southland Times, Issue 23377, 8 December 1937, Page 6

PETROLEUM BILL AN URGENT MEASURE

PASSAGE BEFORE RECESS PROBABLE (From Our Parliamentary Reporter) WELLINGTON, December 7. In spite of the apparent concern of Government members over the question of royalty payments for petroleum in New Zealand, the Petroleum Bill, consideration of which was adjourned last night, is still likely to be passed before the House of Representatives adjourns at the end of the week for the Christmas recess. The Bill vests all petroleum deposits in the Crown and provides for prospecting and mining rights to private enterprise, with a proviso that a royalty of 5 per cent, must be paid to the Government on the value of all petroleum won from New Zealand wells.

The fact that under the Bill property owners on whose land oil may be found are to have no share in the proceeds from royalties was contested by the Opposition yesterday, and particular exception was taken to the fact that the alienation of mineral rights on native lands constituted a breach of the Treaty of Waitangi.

As the debate on the Bill was adjourned on the motion of the Government nothing is to be allowed to impede the business of the House during the next few days, the Prime Minister (the Rt. Hon. M. J. Savage) was asked in an interview this evening whether the Bill would be discussed again before the adjournment on Friday. “I think we will be able to put it through all right,” the Prime Minister replied. “It will come up for discussion again on Thursday.” Although the Prime Minister did not say so it is understood that the Government will be prepared to reconsider later in the session differences of opinion already expressed in the House so long as the Bill itself is passed before the recess.

As indicated yesterday by the Minister of Mines (the Hon. P. C. Webb) the passage of the legislation is urgently required in order that important overseas interests may begin an early and comprehensive search for oil deposits in New Zealand. Mr Webb himself is of the opinion that the main objective is to get the drills working as soon as possible on likely oil-bearing lands.