IRONMAKING.

Taranaki Daily News, Volume LIV, Issue 108, 27 October 1911, Page 7

IRONMAKING.

GOVERNMENT OFFERS BONUSES. TERMS TO EXISTING LESSEES. WITH A DEFINITE ALTERNATIVE. "An act to encourage the manufacture of iron and steel from New Zealand iron ores and ironsand," states the short title of the Iron and Steel Industry Bill. Its principal provision is that which gives authority for the payment of bonuses totalling £00,270 for the production of iron and steel manufactured from New Zealand ore?, as follows: (a) ror the first thirty thousand tons of pig-iron or ingot-steel, twenty shillings (per ton. (b) For the first twenty thousand tons of bar. rod, angle, or other iron or steel, twenty shillings per ton. fc) For the first ten thousand tons of steel, or plate iron or steel, twenty shillings per ton. (d) For the first five thousand tons of fencing-wire twenty-five shillings per ton STATE RESUMPTION.

After the expiration of forty years, all the plant and other property used by the successful manufacturers shall pass without compensation to the Government, or the State may at any time after fifteen years, upon giving two years' notice, take, over the undertaking such compensation to be paid as shall be fixed by three judges of the Supreme Court. EXISTING LEASES: THE GOVERNMENT'S TERMS. Three existing leases of iron ore-bear-ing land-s are mentioned in the schedule of the Bill. One of 020 acres is held by the Public Trustee as executor of the late Sir Alfred Cadman, for a term of forty-two years from 1905, with right of renewal; the second was granted in 1907 to Washbourne Bros., of Callingwood, for twenty-one years, covering an area of 56 acres adjoining the Cadman lease; and the third, a prospecting warrant in respect of 900 acres an Onehaka, held by Thomas A. Turnbull, of Nelson.

These lessees are to be given the opportunity of surrendering their leases, replacing them with leases of forty years' currency, subject to covenants of which the following are the most important:— During the first two years after the! passing of this Act the lessees shall ex-' pend in the production of iron and steel from New Zealand iron-ores a sum ot not less than £ 100,000, and within four years from the passing of this Act a further sum of £IOO,OOO. Moneys expended in wages or salaries in the* open-ing-ujp of coal mines in New Zealand for the supplv of coal or coke to be used exclusively for smelting purposes in connection with ironworks, in the formation of tram-lines or railways, in erection of furnaces for smelting ironi ores, and in the construction of roads, tramways, electric-power lines or fittings, wharves, piling, water-races, water-power installation, tunnels, shafts, reservoirs, or other necessary works shall be included in the amounts required to be spent by the lessees under this provision. '

An undertaking by the Minister that if the lessees will supply rails, girders, iron or steel bars, or other articles of good quality made from iron-ores in New Zealand which may be required by the Government it will purchase such from the lessees at wholesale London prices plus the charges for freight from London to the Dominion.

An undertaking by the lessees that not more than one thousand tons of unsmeltcd ores taken from the lease shall be exported from the Dominion each

The lessees will lie also subject to the resumption and compulsory acquisition clauses of the Bill. A penalty not exceeding £IOOO may be imposed for arty breach of the lease. COMPULSORY PURCHASE IF NECESSARY. • The last two clauses of the Bill pro-. vide for a State undertaking as an alternative. They read:— !). If the lessees do not accept the terms offered by this Act within six months from the date of its coming into operation, the Government may, under the provisions of the Public Works Act, 1908, resume the properties mentioned in the schedules hereto, and all leases, freeholds, water-rights, tram-lines, and all other properties of every kind held by any person at Parapara, in the provincial district of Nelson, and which may be necessary for the .purposes of production of iron or steel from the ore deposits at Parapara aforesaid.

10. In the event of such resumption the Minister is hereby authorised to enter into an agreement for the purchase of any leases or other rights at present held by any person over the foreshore at Taranaki which contain deposits of iron-ores and which may be hereafter required for the production of iron or steel from Euch ores. IS A BONUS WANTED? OPPOSITION TO THE PROPOSAL. Members of Parliament are taking considerable interest in the Government's proposals to establish the iron manufacturing industry in New Zealand, cither by means of a bonus to a private concern or by State enterprise. A meeting convened by Mr. 1\ M. B. Fisher was held on Monday in one of the committee rooms, a number of members being addressed by a gentleman who is strongly of opinion that no bonus or concession is required to develop the iron industry in New Zealand, and that sufficient capital will be forthcoming in New Zealand to undertake the establish- | ment of a works for the production of pijr-iron even if the bonus is not granted (says the Times). THE CADMAN LEASE. A lease of 1000 acres of rich iron-ore deposits at Parapara, near Golden Bay, in Nelson province, was granted in Hlflo to the late Sir A. .T. Cadman subject to power of purchase by the Stain 'at the expiration of twenty-eight rears. A deposit of CIOOO was'made, and under the terms of the lease this was to be forfeited unless the sum of £IOOO was expended on the property within the first year, with further provision for expendi-

Lure up to £.">!>.n(l<). So fur. tho lessees have not commenced to actively utilise their rights, and it

was suggested to tlic members on Monday tliiit pig-iron could be manufactured at Para para for "5* per ton. Tin' cost of pig-iron in England and Scotland ranges from C2 Ills to .C 3 Its ])cr ton free on board, while in New Zealand the quotation* ramie from £4 10s to £■"). Xew Zealand imports about {1707 tons, and Australia 42.i">!) tons of pig-iron per annum, a total of 7\<).(\->C, tons, and to manufacture, say. 40.000 tons per annum (which would be done by one furnace having a capacity of 120 tons a day) would, according to authorities quoted at the meeting, involve a. capital expenditure of lie! ween £(10.000 and .CTii.OWi. I THE LABOR FAC'TOH. Ts labor trouble a possible bar 1 to iron production in Xew Zealand? The i members were assured that the conditions at Para Para were so admirable for I cheap handling that although twice the

amount of English wages might be paid per ton, the cost of production would still be less than in England, where, according to Sir Charles Furness, the royalty payable on the ore is equivalent to" a tax of 8s per ton on its ultimate

product. STATE UTILISATION FAVORED. Mr. J. P. Luke has given notice to ask the Prime Minister whether he will, in dealing with the proposal for the manufacture of iron and steel in the Dominion, give preference to the principle that in establishing an undertaking that will largely promote this country's prosperity and'greatness, it is sounder policy to develop such industry by the State, and the proposed.bonus could be used as portion of capita! required to establish the concern; and, will he take steps to resume the Crown areas of mineral lands at Para Para, now held on lease by a company or syndicate? Pig-iron is imported by Mr. Luke's firm from Lithgow. New South Wales, and its cost is £4 2s fid per ton landed in the foundry at Wellington. "We have been getting considerable quantities," states Mr. Luke, "and we are satisfied with the quality, but the supply is erratic, owing to labor troubles."