NAURU PHOSPHATES

Dominion, Volume 13, Issue 236, 30 June 1920, Page 7

NAURU PHOSPHATES

COMPLETION OF PURCHASE FULL SUPPLIES EXPECTED • MEMBERS SHOW INTEREST Great, interest was shown by members of the House of Representatives in the ""uru purchase when the opportunity was afforded them of asking questions concerning it in the House yesterday. There was an item in Bill of .£600,000 to make the New Zealand payment for its share of the purchase price. Most of the country members asked about the future supplies of phosphates from tho island, : but the Labour' members were concerned only with labour conditions. ' f'. . Mr. J. M'Combs asked..-what was - the necessity for hastily, passing -this vote, of in connection with the' Nauru and Ocean Island affair. They had seen' the statement- made that, the Pacific Phosphates Company was making a huge, profit out. of the transaction,-' and liethought the . House should have an .opportunity of discussing, the whole transaction without rushing this item fhrough in this shape. : It 6houUl be provided ■for in the "ordinary Budget." Mr. Miissey said that he hardly thought ,it necessary to inform honourable members that the matter had: been' discussed fully .on two occasions last session. The agreement had been ratified by both "Houses,- .and as tho matter was left by Parliament last session all: that remained to be done was to find the money required. This had been done, and the money would have to ,1m paid over in London in two xlays.

Mr. J. A. Young asked what arrangements were made to allow people, who ■wanted phosphatic rock from Nauru to get the rock shipped to New Zealand.

Mr. Massey said that as soon as arrangements ,were complete ho would liave this information. There' was one point ou which he was not certain. He knew that the company had charters over, six ships, but he had been nimble to ascertain whether these ships would be taken over ivith the ither assets of the company. The conipany insisted on.complet-. ins contracts in hand, and these would Ixs completed in a short time. When the Government 'took over, the phosphates would be sold to the farmers at the lowest possible cost, and if there.should be a profit on. the venture, the profit, wouldbe shared by' the three countries. He was quite sura there would be. a profit, because ho knew that the concern had been a.very profitable one.to' the company

Air. /H. Holland: asked' whether inden,ured coolie .-la'bour was still being employed, irt the working of tho phosphates at Nauru, or .whether finy steps were being taken,to stop the employment of this labour ,there.-

• Mr; Massey said that thiere were a certain mimber of coolies employed on the works; but it was intended to make some ■mv:' arrangement; when these islands came under the control of the Governments. .

Mr. Eraser asked whether these new arrangements involved the termination of the indentured labour system on the islands? ' ' • '-.

Mr; Massey said.he was not sure, as to this. First of all, the phospbfates would imve to. be obtained. In addition to the coolies, there were a number of Europeans there, and the Governments were faking over all (he employees' of the company who. desired to stay.' • Replying- to -Mr. Mander, the Prime Minister said that the l rock would collie to New Zealand in a'rough state. The Government owned no crushing plants, but there were other works in the country, including one very, big plant at Auckland,'- ownet} by private concerns, and these plants.would prqbably .be sufficient to satisfy; the requirements of New Zealand. .There was something like a fertiliser famine in the country at present, and there would be a keen demand for this product when, it 'was available. As to the . cost to . the New ' Zealand farmer, he could give, no reliable estimate ■at present.-'"The cost ;of .'labour'.ori' 1 the .'islands had increased,. and freights increased, so, that the price would!-prob-ably be higher.; than had; been expected, but he-'was sure that .tho price, of the phosphates would be cheaper in ' New Zealand than in any other country in the world, ,witb the possible exception of Australia, which ' was also ■ a party to the contract./ Supplies would- be made available as soon as possible. As to all these joints he hoped to have, more information in a few days, Mr. R, Masters (Stratford) asked if the Government would undertake the crushing, of'the phosphate rock and supply the farmers direct. He remembered what had occurred when the Government brought manure* from Egypt during the war. The stiilf had passed through the hands of several agents before it reached the farmers, and. tho price had been raised considerably.. '' '

The Prime Minister replied that the. rock would be -watched by the Government from the islands to the farms. It would bo sold to the farmers at the lowest possible cost. The erection of a new plant would take at least two years. Mv. J. Eiiie (Bruce) suggested the'extraction of nitrates from the air by means of hydro-electric power Within the Dominion. Nitrate of soda, the best of all manures,'lyas now costing ,£BO a ton. A' syndicate hud offered some time ago to manufacture it in large quantities at Miilford Sound for £d 103. per ton. Would the Prime Minister approve of encouraging" private enterprise to take up this work? .

"Personally, yes," replied Mr. Massey. 'If it Is possible to manufacture nitrates from the air da this country by the use of water-power, I 6ee no reason why it should not be done. I have no doubt it will be done in the future. But I doubt if' we are in possession , of sufficient knowledge to undertake t'ho work at present." The Germans, said the Prime Minister, were manufacturing nitrates from the air. They had done it during the war, when Britain was obliged to bring nitrates from Chile by sea through, the Panama Canal. But the Gormans appeared to have a secret process, not yet known to the British. - He had. been present at a. meeting in Paris when a proposal to make tte Germans disclose their process as a part of their reparation payment liiid been discussed. But this course had not been taken, and the Germans still held their secret, which, tli'ey were using in their own country and in Norway.