OIL RESOURCES.

Manawatu Standard, Volume LVII, Issue 217, 13 August 1937, Page 9

OIL RESOURCES.

TRUE POSITION EXPLAINED. ROYALTYTO STATE. «*.- Per Press Association. AUCKLAND, Aug. 12, The State ownership of the potential oil resources in New Zealand does not necessarily imply a State monopoly of the actual production of oil in the Dominion. This was made clear bv Mr A. Tyndall, Under-Secretary of Mines, when .asked to amplify a statement made in New Plymouth by the Minister of Mines (Hon. P. C. Webb) regarding the Government’s intention to encourage scientific prospecting for oil. “Mr Webb’s remarks regarding tlie natioalisation of potential oil resources are being misinterpreted,” said Mr Tyndall. “Publicity has been given to suggestions that the Minister’s statement tends to discourage private enterprise on the grounds that all the oil is to be nationally owned. The real position is that no major private oil interests will embark on a comprehensive drilling programme unless national ownership is first established.” It was gathered from Mr Tyndall’s remarks in conjunction with the Minister’s statement that legislative action will be taken to transfer to State ownership any oil which may be found on any type of land in New Zealand. With State ownership thus established there can bo no exorbitant claims by private property owners for the value of the oil found under their ground. In that event the way will be open for the Government to allow the oil companies to carry on the industry under license on tho payment of a defined royalty to the State.