IRON AND STEEL INDUSTRY

Dominion, Volume 1, Issue 62, 6 December 1907, Page 7

IRON AND STEEL INDUSTRY

LITHGOW WORKS. BT TBLEGKArn—rEBSS ASSOCIATION—COrTHIOHT Sydncv, December 5 Aftor a , lengthy debnto, the Assembl; negatived an amendment moved by Mi M'Uowcn (Leader of the Labour Party) i: favour of the nationalisation of the Lithgoi ironworks. 'fho Assembly then ratified the Govern mont's proposal to advanco £70,000 to th company which owns the ironworks. A proviso is included to the effect tha the Government shall have priority over th bank to the extent of the whole advance. When the Iron Bonus Bill was before th Federal Parliament, the Labour party niade i similar effort to nationalise tho iron and steo industry, but was defeated. In a leading article, tho " Sydnoy Mornini Herald" says tho State's offer is to advanc at i per cent., repayabte in 20 half yearly instalments, for the financial assistant 'of the Eskbank Ironworks at Lithgow. It i a gono'rous ofTer to help an infant industry ii its early difficulties, and it is an experiment "Tho Govornmont. philanthropically consent to advance .£70,000, but who is to say at wha point the liability for further advances wil stop? The other point to bo emphasised, an( one that must on no account be lost sight o in dealing with this question, is the issuo o Stnto socialism disclosed. If wo p> into thi; experiment at all wo must do so with our eyei open. There must be no blundering nlong I path of commitment, which may laud us in thi slough before wo realise whither our action i tending. It cannot be overlooked that in backirij the Eskbank Ironworks tho Government is fore ing tho taxpayer into a responsibility whicl tho ordinary investor, declined to assume whei the proposition was formally, put before hin on tho company's prospectus of an appeal foi more capital. Theso facts, it is necessary anc imperative to say at a juncture like this, mus bo plainly stated and remembered." •■ .-. "The report on the Company's business pre pared for tho information of tho Premier (tin "Herald", further states) shows that for,',mn< months there was an estimated' net rbvehui from tho works of .£0738, subject to a shortagi of liquid capital of ,£52,500. Tho superficia inference to bo drawn is that a larger output will bo necessary to copo with this situation and as increased output depends on increasct capital tho Company may require tho ful amount of its advance to koop going. A sun , of .£45,000 is to bo spent out of tho ndvanci on new plant, and if that nmount is sufficionl for the purpose that argumont will bo ado qnatoly mot. But it is subject to tho deduc tion for repayments, which, however, will noi begin until another year has elapsed. . . The State has taken an aetivo part in sup porting the Eskbank enterprise by entering into the seven years' contract, and tho tariff with or without the bonus proposed by the Federal Government, will still further aid the work. To that extent we are committed.' The question for decision now is one as to whethei or not wb are prepared to ro further, and take the risk of seeing tho enterprise through should it fail-on , its present linos."