COUNTRY WITHIN SIGHT OF SELFSUFFICIENCY IN CEMENT

Wanganui Chronicle, 18 October 1950, Page 5

COUNTRY WITHIN SIGHT OF SELFSUFFICIENCY IN CEMENT

Companies Being Brought Up To Full Production

PARLIAMENT BLDGS., Last Night (P.A.) —It was stated in the House of Representatives today by the Prime Minister (Mr. Holland’) that the country was now within sight of being self-sufficient in the supply of cement. The House was at that time [ discussing estimates for the Works Department.

The Minister of Works (Mr. Goosman), discussing the cement shortage, said approval was given some time ago for the establishment of additional cement works and the Government promised to supply power, but nothing more had been heard of the project recently. Mr. Goosman said that although the Government had not long been in office it had done a great deal to overcome the cement shortage. Imports this year would total 100,000 tons, compared with last year, and the amount imported next year would have to be still greater. COST OF PRODUCTION. The Minister said his advice to anyone who claimed to be able to import cement more cheaply than it could be produced in New Zealand was “go to It.’’ Imported cement was actually considerably dearer, although the price of New Zealand cement was increased to equalise it with the imported cement. He was hopeful of an increase in the level of New Zealand production by 1952, but the demand was such that the total requirements of all districts could not be met at present.

Mr. Eyre (Govt., North Shore) said he had been Informed that one cement company could have had its new machinery in operation two years ago had the former Minister of Finance agreed on the rate of interest on the loan which the company required to purchase its equipment from Australia. “Can the Minister of Works inform me if that is true " asked Mr. Eyre. Mr. McCombe (Opp., Lyttelton), said that it should be seen to that our cement works did not become tne offshoots of other companies. The Golden Bay Company had recently become the subsidiary of a British company. In general the Labour Party was of the opinion that local organisations should be expanded with the use of local capital. It was a retrograde step that one of our New Zealand firms should be comptrolled from overseas. Mr. Semple (Opp., Miramar) former Minister of Works, said that he had been disappointed in the dealings he had had when Minister of Works, with the cement companies. “They promised to do a lot,” he said “but they have done nothing.” He said that everything was done by the “big lawyers” to block the granting of a licence for the establishment of a further cement company. Eventually the industry was delicensed to allow another company to operate, utilise the natural resources of the country, and avoid the bringing of cement thousands of miles to New Zealand. Mr. Goosman said that the Golden Bay Comany, before it could expand, required considerably more capital and no one would object to “good British capital” coming into the country. The Minister said the extra capital was required for wharfage machinery and ships. The company’s plans were well under wav for a considerable increase in output. The country required 350,000 tons of cement a year and

Ihe present output of the companies was 245,000 tons. Mr. Holland said the country was within sight of being self-sufficient in the supply of cement. Soon after the change of Government the members for Miramar and Buller came to him and put up a proposition that would enable 100„000 tons of cement to be produced at Westport, but at that time there was no assurance that power would be available for the project. The Government had given a guarantee that power would be supplied, but it was disappointed because nothing more had been heard of the scheme from that day to the present. INCREASE IN CAPITAL. The Golden Bay Company, since Ihe Government had been in office, had been given authority for a great increase in its capital. Before five o'clock today the Government would authorise a further increase to enable the company to bring the most modern machinery in the world to New Zealand and greatly increase its production, said Mr. Holland. He said that the Wilson Company would be ready to increase its production 18 months from now and the Millburn Company was about nearly ready to double its output. Mr. Holland said that the House should know that cement could be manufactured cheaper in New Zealand than anywhere else. The Westport proposition, however, with an output of 100,000 tons, would entail a loss of 10s a ton and the establishment of the industry there would have given the miners who might have been displaced because of the installation of an aerial ropeway at the mines alternative employment. It should be acknowledged, said the Prime Minister, just what the Minister of Works had done in his first term of office, and that was to remove the need for the importation of cement. It was hoped that in 1953 the Golden Bay Company would increase its output from 50,000 tons to 100,000 tons; and by the end of 1952 the Wilson Company from 160,000 tons to 200,000 tons, and the Millburn Company from 50,000 tons to 100,000 tons. Mr. Holland said there was a huge back-log of demand held over from the war years. Cement was also being put to new uses and altogether the present demand was far greater than ever before. The Minister deserved the highest praise for the energetic way in which he had dealt with the cement shortage. It was hoped to have in service soon new cement ships, which would bring the bulk of the cement from the Golden Bay works to Wellington, where the cement would be discharged at a modern bagging station. The people would then be able to get more cement than ever before, said Mr. Holland. Mr Hackett (Opp., Grey Lynn) said the developments mentioned by the Prime Minister had been arranged by the previous Government, which deserved 90 per cent, of the credit for what was now being done. He said the people would be grateful if. as the Prime Minister had indicated, restrictions on the use of cement could be lifted entirely in a few months time.