NORTHERN AUSTRALIA.

Taranaki Daily News, 19 July 1933, Page 6

NORTHERN AUSTRALIA.

The statement that private enterprise was available for the development of tropical Australia, upon certain terms, seems, to have been somewhat premature. Though Australia has made considerable recovery the Commonwealth as a field for investment is still regarded with some misgiving by cautious investors. They point out that' the floating debt has increased enormously, and that it is impossible to say how much of the improved trade returns are due to stimulation' by means of borrowed money. Of all districts in Australia the Northern Territory has been: the one that has responded least to the outlay of capital, whether provided by the State or by private investors. Lord Vestey, who was spoken of as one of those prepared to join a chartered company for the development of the Territory, is the head of an organisation that has already expended £2,000,000 in efforts in that direction. The results have been most disheartening; yet no other enterprise seemed to have a better chaiice than that controlled by Vestey Bros. They owned the cattle stations, the freezing works, the vessels that conveyed meat to London, the cool stores and the retail shops in Great Britain. Such a chain of ownership, would seem to ensure success if it were in any way possible. But the meat works at Darwin, which cost £1,000,000 to build and equip, have scarcely functioned since war-time prices for meat came to an end. Labour costs at 'the works alone amounted to more than twice the value of the cattle on the stations, and this, with charges for droving, loading into ships, and other incidentals made profitable working impossible. Meanwhile cattle raising is the only industry for which the Territory is suitable without enormous expenditure upon such services as water conservation and transport. The outlook for investors is hardly tempting, and it is not surprising to learn that the proposals for a chartered, company have had a cool reception in the city of London.