STEEL INDUSTRY

Timaru Herald, Volume CLVIII, Issue 23314, 25 September 1945, Page 4

STEEL INDUSTRY

Development Delayed Government Caution (N.Z.P.A.) WELLINGTON. Sept. 24. Discussing the State Iron and Steel Department when the House was in committee on the Estimates to-night, Mr W. Sullivan i National. Bay of Plenty > said it was one winch should give the people of this country a warning of wnat happened when the State stepped into private enterprise. The vote for the account was £5466. of which the commissioner and secretary each drew a salary' of £1075, one man, presumably an employee, drew £356. and £lO9O was for survey and other preliminary work. He considered that a balance-sheet should be presented to the House. The account as it stood on the Estimates “covered up too much.” Mr K. J. Holyoake (National, Pahiatua) said the account was a Gilbert and Sullivan show. This was the industry introduced with a blare of trumpets, he said. We were to have our own cutlery, many other articles and machinery. The industry was simply the laughing stock of the country. He discussed the item of £1530 for Court expenses, and asked was this to cover £llOO expenses in connection with previous litigation which went against the Government. He felt it was injurious to have the Government cutting such a sorry picture in the Courts of the country. There were claims of £375.000 pending against the Government. If private enterprise could not have raised the money to finance the industry, then there was a case for the State to take over. Every Court decision had gone against the Government in claims for compen.ation, and the country had been waiting for seven years for the in ins’ C’ to develop and nothing had happ men Ore Not There The Hqn. D. G. Sullivan said ever since the settlement of New Zealand began overseas scientists had estimated there were large quantities of iron ore at Onekaka. The estimates ranged up to 100.000.000 tons. When the present Government took office it obtained the advice of an expert steel firm. This firm did not confirm the earlier glowing reports, but cn the basis of its world-wide experience it nevertheless considered there was sufficient iron ore there to meet New Zealand's needs for 70 years. That was the best private enterprise in the world, but the Government decided to make its own investigations by tunnelling and boring before the industry was further developed. The Minister said it was then that the discovery was made that the iron ore was. not there in anything like the quantity which the expert firm had indicated in its report. Mr R. M. Algie (National. Rcmir'ai : You might get a couple of horseshoes out of it.

Tire Minister said it was because of these few million tons of ore that Pacific Steel wanted this country’ to pay £357.009 compensation. The Government was defending the interests of the people. Mr Holyoake had declared that compensation cases had been before every Court, and that the Government had lost every decision. The fact was that no claim fcr compensation had yet gone before the Courts. The onlv matter which had been referred to the Warden's Court, and which the Government subsequently made the subject of an appeal, had nothing to do with compensation. The question of whether Pacific Steel of anv other company was entitled to compensation and. if so, how much they should get. still had to go before the Courts. Processing of ’ -'•is

Mr Sullivan said that a new method was being developed in the United States for processing ironsands. This method appeared to be on the point of practical utilisation. The United States had developed a plan for using its own ironsands more economically and there was every hope for the success of this new process. Until that experiment was complete we were holding our hands. Mr W. J. Polson (National. Stratford) said it looked as if the only hope for the Dominion was that Taranaki's irensand would come to the rescue. Mr Sullivan said we had been reouested to make an authoritative survey of our ironsands in relation to their possible utilisation by the new method. Mr Polson said there had been such surveys of Taranaki ironsands before and samples had been sent overseas. He hoped the surveys for which preliminary provision was now made in the Estimates would be fruitful. Pacific Steel Enterprise After some debate on the activities of Pacific Steel and financial proposals to raise money for the exploitation of iron fields and a discussion of the attitude of the State toward the reports of the investigating experts, the Minister said he regarded the attempts of those who supported Pacific Steel in that enterprise as absolutely immoral. The fundamental thing was that the ore was not there. Mr Holyoake: Will the Minister say how much is there? Mr Sullivan suggested that the member for Pahiatua go and see for himself. Mr M. H. Oram (National, Manawatu): Will the Minister go ahead after the compensation case concludes? Mr Sullivan said he would make no commitments. There was never any chqnce of Pacific Steel getting finance on their own. They proposed to raise £3.000.000 at 5 per cent backed by the New Zealand Government. There was no chance in the world of the Government doing that. Pacific Steel could not have got the money and he ventured to predict that that would be proved at the Compensation Court hearing. When the House rose at 10.30 the following vates had been passed: Industries and Commerce. £953.115: linen flax development. £536.917: iron and steel. £5465; Native Department. £351.936.