ONEKAKA ORE DEPOSITS MR. H. ATMORE.

Timaru Herald, Volume CXLIV, Issue 20983, 11 March 1938, Page 11

ONEKAKA ORE DEPOSITS

MR. H. ATMORE.

SUFFICIENT FOR 500 YEARS HOUSE DEBATES STEEL BILL By Telegraph—Press Association WELLINGTON, March 10. In the House to-day, urgency was granted, on the motion of the Prime Minister, the passing of the Iron and Steel Industry Bill, the debate on the second reading of which was continued by the Rt. Hon. J. G. Coates (Nationalist, Kaipara), who said he had listened carefully to Government speakers during the debate to try to ascertain the reason for the proposed socialisation of this industry. The Minister of Mines, said Mr Coates, had referred to the fact that past Liberal Governments had been favourably disposed towards State control of the iron and steel industry. This might be so, but he would point out that although these Liberal Governments had had ample opportunity of taking control they had not done so. The plain fact was that the Government had made up its mind to socialise or communise, call it whatever one liked, this industry. Mr Speaker here intervened, stating that during the debate there had been too much reference to the question of State or private enterprise. In future general references to this aspect of the debate would be ruled out of order as "tedious repetition." Continuing, Mr Coates asked the Government to give a careful summary of the economic grounds for the establishment of the industry. He would also ask how much more would it cost to produce iron and steel in New Zealand than to import it. Great Possibilities The Minister of Labour, the Hon. H. T. Armstrong, said that every argument that could be used in favour of the socialisation of hydro-electric and

water supplies could be made to apply with equal force to the iron and steel industry. He made reference to the part played by the Unemployment Board with different iron and steel companies. In November, 1935, said Mr Armstrong, the Board had carried resolutions to the effect that the industry could be established and would assist in establishing a better balance in industry generally and also in creating employment. Since 1914 they had been waiting for private enterprise to develop the industry, and all Liat had been done was to erect a "tin-pot” shed at Onekaka and raise a few thousand pounds. This could not possibly be successful. Mr Armstrong added that thousands of people throughout the Dominion had been "rooked’’ by company promoters, and all the shareholders he knew would be only too glad to hand all their shares over to

the Government if the Government returned to them half the money they had invested. Speaking of New Zealand’s general reluctance to reduce Britain’s steel market in this Dominion,

the Minister asserted that Australia was taking an increasingly large proportion of New Zealand’s iron and steel trade and consequently, British trade would be very little affected. The iron and steel deposits in New Zealand would last three countries like New Zealand 500 years. There was no country in the world with better possibilities for the development of the iron and steel industry than New Zealand to-day. Mr W. J. Broadfoot (Nationalist, Waitomo) contended that there had been private capital available for the development of the industry, but the I Government had made up its mind that 1 the industry should be controlled by , the State. He said that the people I responsible for the development of the Pacific Steel Company were good citizens and did not deserve the gibes which had been hurled at them by supporters of the Government. Members of the Opposition were just as anxious as the Government that the resources of the country should be developed, but they differed on the method of development which they held, could be better done by private enterprise than State control. Duty to Proceed Mr L. G. Lowry (Labour, Otaki) said the Government had come to the conclusion that the time for dilly-dallying had ended, and it was its duty to get on with the job. He thought that Onekaka was the correct site for the new iron and steel works. If the industry were established there and when it got fairly into its stride, it would make Onekaka the seventh port in the Dominion. The Rev. Clyde Carr (Labour, Timaru): What about Timaru? Mr Lowry: Timaru will have to look to its laurels when Onekaka gets going. No Confidence in State Control Mr S. G: Holland (Nationalist, Christchurch North) said every right thinking member of the House, in fact everyone in the country, desired to see the natural resources of the Dominion properly developed, and he hoped to see the iron and steel industry developed on sound economic lines. He also hoped that whether it w r as established either under private enterprise or State control that it would be a thorough success. However, he added, he had no confidence whatever in the development of the industry under State control.

Referring to the operation of the proposed industry, Mr Holland said the Minister’s proposals were that the most easily made goods should be manufac-

tured in New Zealand. If that were done, would competing manufacturers be prepared to supply the Dominion’s requirements in other articles. Mr J. A. Lee (Labour, Grey Lynn), said the Opposition was arguing that every country on earth was to be allowed to supply New Zealanders with iron and steel except New Zealand. He asked why New Zealanders should be denied the right to develop the large deposits of raw material in the country. He was in favour of the Bill because he was a New Zealander and a Socialist. The Opposition wanted Socialism in their own way. They wanted guaranteed returns to a favoured group. After dealing with the value of the industry for defence purposes, Mr Lee added that there were industries in New Zealand which had to have metal, and they would be thrown out of action if supplies from overseas were cut off and New Zealand ore had not been developed. New Zealand had unrivalled resources, more electrical energy and iron ore than any other country in the Pacific and those who had faith in the future of the country should be prepared to develop those resources. In Favour of Development Mr H. Atmore (Independent, Nelson) said the measure concerned the third largest deposit of iron ore in the world, and he held that that deposit should be developed by the State in the national interest. He did not approve of handing over the petroleum industry, for instance, to private interests, and considering the importance of oil and iron in the present economy

of nations he considered that the State should undertake the development of both industries as well as others of similar consequence. Mr C. Morgan Williams (Labour, Kaiapoi) said of the £5,000,000 which it was estimated would be spent on the establishment of the industry, more than £4,000,000 would be expended on imports such as plant, etc., and over the increase in price of these imports the Government had no control. He contended that there was an ample market in New Zealand for the products of the plant it was proposed to establish, and he regarded it as a fallacy to claim that the industry could not prove successful unless export business were contemplated. The Opposition had stated that Britain might make reprisals against us if we reduced British markets by manufacturing our own iron and steel, but that she would not take such drastic action if a British firm were engaged in the development of the industry. Personally he was of the opinion that the people of Britain wo not care much who manufactured our iron and steel. Another point to be remembered, he said was

the fact that Britain’s consumption of our produce must decline within a few years on account of the decline of Britain’s own population. State Control Disliked Mr S. G. Smith (Nationalist New Plymouth) said that methods adopted by the Government in its anxiety to do something for the industry would be a complete failure. No future Government would be able to tackle it while private enterprise would not be able to take it up. As a public man he had had an opportunity of seeing the ghastly failure of State control of industries such as this. Mr H. G. Dickie (Nationalist, Patea) said he did not know of any case of State control in an industry such as this that had been a success. New Zealand’s requirements for iron and

steel were so small that he was doubtful if they could keep the proposed works running full time, and to prove profitable they must run full time. Mr H. S. S. Kyle (Nationalist, Riccarton) suggested that the proper time to introduce a scheme such as this which involved an expenditure of £5,000,000 was at election time. It could then be placed before people for them to judge upon the matter. Like the Member for New Plymouth, he added, he had seen cases of the failure of State control in industry. Amendment Rejected Mr W. P. Endean (Nationalist, Parnell) moved the following amendment: "That while recognising the desirability of establishing on a sound basis a modern iron and steel mill in New Zealand and believing the best interests of this country will be served if such establishment is conducted by private enterprise, the Bill be referred back to the Government. (1) "For a further and more complete investigation by an independent authority with a view to determining whether the industry can be successfully established in New Zealand. (2) "To enable it to make available to Parliament and the country all the reports, technical data and other relative information upon which the Government proposal to spend £5,000,000 of the people’s money in this industry is based. (3) "To further explore the possibilities of the industry being established by private enterprise.” The amendment was defeated on a division by 45 votes to 18. Time for Action Replying to the debate, the Hon. D. G. Sullivan said he could not understand why it should be assumed that State enterprise should fail. One had only to look around to see ghastly failures in private enterprise, and he contended that a great number of assertions had been made in this respect by the Opposition without any substantiation. The country was tired of investigations, he added. Now was the time for action. The second reading of the Bill was passed and the House went into committee. Progress was immediately reported and the House rose until 2.30 p.m. to-morrow, the Hon. P. Fraser stating that the committee stages of the Bill would then be proceeded with.