PETROLEUM BILL.

Press, Volume LXIII, Issue 19137, 21 October 1927, Page 12

PETROLEUM BILL.

NOT TO BE PASSED THIS SESSION. INTERESTS TO BE SAFEGUARDED [THE PBESS Special Service.] WELLINGTON, October 20. The Petroleum Bill was reported from the Lands Committee to the House of Representatives to-day .with minor amendments, and, after an interesting discussion, was read a second time pro forma In order to give time for further diseussion throughout the country in regard to the various interests concerned it is not proposed to pass the Bill-into law this session. When the Bill was reported from the Committee, Sir A. Ngata (f"f ru Maori) suggested that as the Bill dealt with Native lands in a very drastic way, it should be referred to the Native \ffairs Committee. Mr W. D. Lysnar (Gisborne) said the Bill should be referred to the Statutes Revision Committee, seeing that extraordinary powers were being taken under it. Natives' titles would be affected to a considerable extent. The Prime Minister said he agreed that the Bill should be sent to the Native Affairs Committee. At the same time lie did not wish it understood that it was a very drastic measure in so far as land was concerned. None knew better than Mr Lysnar that it was not intended that the Bill should become law this session. Mr Lysnar: I did not know that. Mr Coates: I'm sorry: I thought the hon. member knew. Mr T. W. Rhodes (Thames) suggested" that the Bill should go to the Mines Committee. Mr Lysnar: What has the Mines Committee to do with it? Nothing at all. Mr Coates said ho would like an expression of opinion on one of two principles contained in tho Bill. It was the genesis of an arrangemeut under which capital could be invested in exploration for mineral oils in this country. Mr Lysnar: '\Yc have got that now._ Mr Coates: The difficulty is that capital is offering, but is hampered with the individual agreements that have to be made. There are thousands of settlers to be considered. We are trying for an organisation that will make it possible and easy to permit of exploration, while at the same time conserving all the reasonable rights of those who own land. We desire that the people affected should have an opportunity of discussing the provision contained in the Bill.

MrH. E. Holland (Leader of the Opposition)' said he could not understand why it was proposed to refer the Bill to a committee, and then not consider it this session.

Mr Coates: It is advisable that tho landowners should have an opportunity of expressing their opinion. It is a far-reaching Bill, and should not be rushed through. Sufficient time should be given to all concerned to study it. Mr Wilford (Hutt) said a measure of this kind was much required. It was far-reaching in its effect, and all the interests concerned should be enabled to make-representations. The Hon. Mr Anderson (Minister for Mines) said the Bill had been asked for for many years, and had now been drawn up in the light of the experience of various countries. • "I am satisfied, from what I have read ajid heard, that the only sure means of thoroughly testing this country for oil is by 'large capitalists," Mr Anderson continued. "Small capital .runs out before the test is finished. I want the owner of land to be assured of his rights at the samo time. In this Bill we have endeavoured to do. this, and the object of introducing the Bill now is to give the country an opportunity of studying it, and of giving evidence before tho Committees. During the recess it can be considered by everyone. Our oil formations run into 40,000 square miles. Whether ornot they have been exhausted by past interferences we can only tell by prospecting, and by getting the advice of the best geologists, and the only way the capital can be found is by getting private capital." Mr Anderson said the late Prime Minister had been approached on this question by the Anglo Persian Oil Company, but the matter had not been .gone on with. They could not get ah assured legal position without going to every owner of land. The object was to obtain those rights so that the Crown could let them to people who were in a position to carry on.prospecting thoroughly, and secure the capital necessary. Hewas satisfied that no Government in New Zealand would expend the money that was necessary for prospecting for oil. Companies had spent three or four millions in finding oil in British Guiana, and three or four millions more before they were able to market it. Large capital and great care would be needed here. Already there had been injudicious boring, and water had been let into one of the fields. They did not want that sort of thing. He wished to have the Bill thoroughly investigated. The company that was prospecting in the north here had in their initial efforts met with a great deal of legal difficulty in obtaining the necessary rights to bore over the area they desired. They had to approach each individual owner. There were also difficulties with reserves and Maori lands. The Government, in any system it might 'adopt, wished to do justice to all parties, and at the same time test the country for; oil. .

The Bill was referred to the Native Affairs Committee, and the Mines Committee, after having been read a second time pro forma.