LETTERS TO THE EDITOR.

Dominion, Volume 4, Issue 1242, 26 September 1911, Page 2

LETTERS TO THE EDITOR.

OIL AND IRON INDUSTRIES. U'lir THIS SUDDEN ENTHUSIASM? Sir,-Tho greatest vigilance is now nccesMirv regarding the proposals to be submitted by the Government as outlined in the Budget. 1 have noted that it is generally dinin" the last session of our successive larliaineuts that legislation, designed to benolit the few at the expense of the, many, is brought down and passed, and, strange to say a few of our legislators aro aware as to what is really being done. _ Tho Budget contains proposals, inter alia, relating to the oil and iron industries of this country. Apparently the Government is not quite clear as to what form assistance should take. It regards Parliament somewhat suspiciously, nnd is anxious to trend warily, for there are many reasons why it is necessary to avoid undue prominence beinst given to these particular proposals Why has the boyernment found it necessary just at this hour of the dny to render assistance in the directions indicated? About six years ago unusual activity prevailed in the oil market of New Zenland. Results of a promising character had been obtained at Motorua. At tunt time the public displayed h keen interest in that particular Held, nnd others adjacent thereto. I estimate that about ,£IOO,OOO cash has been used up by tho several companies since that date in endeavouring to develop the industry. So far tho Taranald Petroleum Compaiiv is the only original concern which is likely to meet with any success. I use the term "likely," and write, purely from a company 'point of view. Probably the Government will remember the several appeals that were made for assistance in and out of Parliament on behalf of these struggling. companies -not after finding oil. but to assist them in finding it. The, Government was requested to remit the duty on plant machinery used for that purpose. Mhat success did the companies meet, with? None whatsoever. Now we are at a different stage. London is becoming, or likely to become, interested, and as a rule' London does not interest itself in matters of this description unless the inducement is sufficiently attractive. It is a suggested proposal to assist the London promoters to get their scheme through by offering to admit all plant machinery duty free. Now, why could not this have been done h'vo or six years ago. A largo number of investors who could not afford to lose were compelled to abandon their prospect primarily through lack of that assistance which it is , now proposed to oll'er to outsiders. Hoarding the iron industry. The mind of the Government is not quite so easily discerned on this matter. It suggests being given the power to take ono of two courses. I suggest that neither course is the right one. Does tho Government honestly believe that it. is necessary in the interest of the establishment of this industry from the. national standpoint that n bonus should be paid—to whom—again to London. Has it reliable and authentic information in its possession to show .the necessity? What has- been done in this industry and its develonmcnt here to show it? Absolutely nothing. The very suggestion of what is likely to be done lays bare the fallacy of the nromsal. A sum of .£500,000, or even ,£OOO,OOO, has been mentioned as the amount required to carry out tho initial development of this industry. I ask how much of thut is water, and what amount actual cash to be expended. Now, sir, what is the real reason for this suggested bonus or assistance for a period of years. To pay dividends on watered stock—to whom? London mostly. By whom? The taxpayers of New Zealand. I say the indus- , try enn bo established on one-third of the amount suggested (and I speak with a full knowledge of the facts'), and, furthermore, that it can lie made to pay without tho assistance which, the Government proposes to give. In the meantime care and vigilance must be exercised in and out of Parliamerr.— I am, etc., TAXPAYER.