IRON AND STEEL WORKS

Wanganui Chronicle, Volume 84, Issue 5, 6 January 1940, Page 8

IRON AND STEEL WORKS

ONEKAKA PROJECT POSTPONEMENT CAUSED BY WAR COMMENT BY MINISTER [ Per Press Association.J NELSON, Jan. 5. The Minister of Industries and Commerce, Hon. D. G. Sullivan, in a statement to-day, said that included in the commercial difficulties associated with the outbreak of the war for New Zealand had been the inevitable postponement of commencing work on the establishment of the proposed iron and steel works at Onekaka. Just how long the delay will extend it is not yet possible to determine. The United Kingdom was unable to give any undertaking as to the building of the plant until war supplies were assured. Proceeding, Mr. Sullivan said the war emphasised as never before the great need for a basic iron and steel industry. “Although we have the necessary raw materials in the country for the manufacture of steel, the building industry and local manufacturing industries at the present time are handicapped because of inability to secure nails and other steel products, and it must be emphasised that this shortage is due to the inability of the steel manufacturers to supply and not because of import control," said Mr. Sullivan. “The advantages to be gained by the establishment of our own steel works will be more readily appreciated if I point out that not only would steel supplies, which are so vital to the general economy of New Zealand, be assured, but the sterling saving would be in the order of 1.3 million pounds per annum. The release of sterling from necessary expenditure would, in 1940. have gone some distance towards restoring the sterling balance, assuring other manufacturers of adequate raw materials. The present experience will surely supply added encouragement to expedite this essential development as soon as circumstances permit. The indirect advantages to the national economy are so great that it can, with confidence, be stated that it will mark the beginning of a new era in industrial development and that in spite of, and in addition to, the tremendous expansion, which has taken place during the last four years.” Concluding, Mr. Sullivan said the coal requirements of the steel works, when perating, will amount to some 185,000 tons per annum and will mean a greater development for the Westi land province, more particularly Greymouth and Westport. “We must then hope that it will be possible to make a commencement on operations on this great project during this new year." he said.