Aluminium, Steel Attacked, Upheld

Press, Volume CV, Issue 31006, 11 March 1966, Page 1

Aluminium, Steel Attacked, Upheld

(From Our, Own Reporter)

WELLINGTON, March 10.

The deputy leaders of the two main political parties today entered the growing controversy over the proposed steel and aluminium industries.

Their comments ■ after a statement by j a member of the Building Advisory Council (Mr W. F. Molineux) that the Government’s “precipitate rush to cash in on the mythical metal markets was causing a crisis in the country’s economy. The Deputy Leader of the Opposition (Mr Watt) said' the Government should not have got involved with the manpower or capital costs in providing the big Manapouri i hydro-electric plant for the i proposed aluminium industry | at Bluff.

They should have been the full responsibility of Comalco, which had an option expirIng in 1968 on the power from the dam for an aluminium works.

I Only a few New Zealanders ■would have been employed, jbut the Government would at least not have had to find manpower and capital. The Deputy Prime Minister and Minister of Overseas Trade (Mr Marshall) said Mr Molineux’s criticism of the planned steel and aluminium industries was uninformed and incorrect. "The aluminium industry will be competitive on the world markets because the power which is an important element in the cost of production is cheaper than any other available.” he said. “Most of the aluminium ■ i will be for export and will be used accordingly.” Mr Marshall said the steel

industry would be economic and efficient because the new materials of iron sands, coal, limestone and water were readily and cheaply available, “The earning and saving of

overseas funds of these two industries will run into many millions of pounds,” Mr Marshall said. “If we have to restrain construction and building as we do, then there are many other projects much less important for our future development which can be deferred. This is being done.”

Mr Watt also commented on a report that an Italian construction complex had tendered for two big tunnelling contracts in the Tongariro power development scheme.

He said it was Labour’s policy as far as possible that work in New Zealand should be done by New Zealanders. Ministry of Works men should be used where they could be. If a Labour Government had to let contracts for major public works, it would give priority to New Zealand companies employing New Zealand labour.