PAPUAN OILFIELD.

Hokitika Guardian, 11 July 1918, Page 4

PAPUAN OILFIELD.

A STORY OF MUDDLE

Sydney, June 20

The evil results of the Australian policy of attempting to develop the country’s natural resources hv State Departments, and deliberately slutting out private enterprise, is nowhere more apparent than on the Papuan oilfield. So much money has been spout here, and so little achieved that, even fhe Government’s friends are beginning to ask embarrassing questions. Criticism > f Government methods is provided by Air .1 R. boss, a Papuan business man now in Sydney. “ Papua has an oil belt of about K)0 square miles,” he said, “ami there is plenty of native la hour, ami yet after four years of work', the Fedora I Government has nothing to show in the way of results. A coatinuat'on of the present system will only prove a waste of capital.” Mr Ross advocated a system of allotting a substantial amount each year by the Federal Government, to be expended in letting contracts forboring in various parts of the field. That would mean the abolition of the present system of boring laboriously in one place an I the work couid be carried out. under the supervision of a practical oil driller. The fields might be cut into blocks, and the Government might reserve every other block, the balance to he leased to private individuals or companies, under necessary safeguards. Then, if a private person struck oil, the Government would have the block on either side of him if the 700 square miles of country were thrown open to-morrow, private individuals would spend their money in developing it. Afc- present this great Held lay undeveloped, and the Australian market was being supplied from foreign sources.

“To sum up,” said Mr Ross, “ the Government’s efforts have so far resulted in a few bores bein';- diilled, and in a minute production of oil. From a commercial viewpoint, the work has been a failure. If private persons are willing to undertake the risk, surely the Commonwealth, with its resources, ought to be able to do likewise ”