ONEKAKA SCHEME

Gisborne Herald, Volume LXVI, Issue 20017, 16 August 1939, Page 4

ONEKAKA SCHEME

“NOT PAYABLE PROJECT” IMPORTATION CHEAPER “WILL BE A FAILURE” COMMERCE CHAMBER VIEW The opinion that the Onekaka iron works scheme was an impracticable one and 1 that it could not be operated on a paying basis was expressed by members of the Gisborne Chamber of Commerce at the monthly meeting held yesterday and it was decided to bring before tire Associated Chambers the views expressed in the matter by the Gisborne chamber.

The president of the chamber, Mr. H. H. De Costa, commented: that the estimated wages at Onekaka would be in the vicinity of £468,000 and the output would have to be enormous to support the costs incurred in production. It was questionable whether the scheme would j»y its way and it was possible to import metals from Australia cheaper than they could be produced at Onekaka. He moved that the attention of .the Associated Chambers be directed to the position. “Onekaka will be a failure' and,'.had the scheme been a payable and practicable one, outside interests woifld have found 1 a means of developing it,” commented Mr. L. T. Burnard, who .seconded the president’s motion.,

Absorption of Labour Mr. F. Tolerton commented that it had been claimed for the scheme that it would absorb a large number of unemployed workers, but, ini his opinion, the same position as that which had arisen out of the building boom would arise. It had been claimed that as- a result of the impetus to the building trade, there would be opportunities existing for the unemployed, but the Government had been forced to secure tradesmen from overseas to carry out specialised trade work. The same would apply to Onekaka, for the work would require skilled tradesmen and these could be obtained only from overseas.

Mr. W. E. Mclhv.aine said that the chamber was not on the right track. The basic materials for the production of iron ore could be obtained in the Dominion and he could see no reason why these should have to be imported. Government’s Function He pointed out, however, that the function of the Government was to govern and not set itself up as a manufacturing concern. He was otf opinion that the same steps should have been taken as had been the case in Australia where the Government had: given to firms desirous of developing schemes such as that at Onekaka the right to carry on business and had offered protection for the work and allowed it to be carried out on an economic basis.

“The scheme cannot pay” commented Mr. Burnard, who added that, in the opinion o'f. 'experts, there would not be a sufficient supply of ore which would be up to the standard required. In any event, he contended, there would not be the demand for the ore when it was produced. Mr. H. Gilmer said that the introduction of the Onekaka scheme could be considered a strategic one as, in times of war, it might not be possible to meet the demand for steel and iron for armaments. He reminded members of a similar position Which had arisen during the last war, when the price of the commodity had soared to seven times its peace-time market value. After further . discussion the motion was carried.