NEW ZEALAND OILFIELDS.

Taihape Daily Times, Volume XI, Issue 3541, 31 July 1920, Page 7

NEW ZEALAND OILFIELDS.

SERIOUS ALLEGATIONS. , WELLINGTON, July 29. '•'.Liie Government w'll be very pleased to leuni from the honourable member the particular locality in New Zealand where it has been proved beyond doubt that oil exists in payable quantities. The Government has expended some thousands of pounds for subsidising boring for oil. but. so far. the results have been ve:y disappointing." Such was the printed reply given by the Prime Minister yesterday to the question asked by Mr G. Witty (Biccarton)— "Whether, seeing that oil is scarce and almost prohibitive In price, and that it has been prove* beyond doubt that oil exists in payable quantities in New Zealand, and that various nil-bearing wells have been purchased and closed by outside syndicates, they will compel the owners to work the wells to their full capacity or se'l same to the Government within

six nicnths so that the people of the J Dominion- -may receive some benefit j from its own products?" j Mr Witty expressed himself as very ! much dissatisfied with the reply. It ! was commonly known, he said, that | American linns had bought out she j Taranaki oil-wells and dosed them to | prevent competition and keep up the i price •. f oil to the people of New Zeaj Mr Massey: No! ' Mr Witty: The right hon. gentleman I knows as well as I do that pressure

lias been brought io ftoau h% 'Awgßi can firms io close of.-wells in New Zealand, and the Taranaki foil-wells were a case in point. Mr Massey: They haw sold their plane to an English company. r,lr Witty: It should not have been ail wed, as 'they are in ieaguc with the American companies to Keep down competition and keep up prices. It is all v.-rv well for the Prime Minister io laugh, but that sort of. thing should not be permitted. Outsiders, he added,

were coming in to close our wells and secure a mini; poly; and the Government should prevent them doing so. Unless they worked the oil-wells up to their fullest capacity the Government should take the weds ovGFand work them. The same principle applied to wood pulp concessions and many other things.. Later Mr Massey said that, he was practically certain that there had been nothing in the way, of American or other outside' firms purchasing oihvells in this country. He would be glad to think., indeed, that there was an oilwell in this country worth purchasing. 'We had al 1 been greatly disappointed about .the Taranaki wells. Though a bonus had been offered' and paid for the first million gallons of oil raised there, operations had since ceased.. Mr S. ( ; . Smith (Taranaki): Ceased with your assistance. Mr Massey said that the Government had agreed to give another £IOOO t , ass'st an eil-well in Taranaki. If ! there were any real prospects of sue- ! ,•..;.'., Government help would always 'be forthcoming. He be'ieved there I ■. ~s ;v world shortage of oil. and some-

thing would have to be done to pr< vide another source of supply than America. The machiwry 'referred to by Mr Wiity lind been purchased by the An-glo-Persian Oil Syndicate, and even now the syndicate was willing to join with the Government :'n developing the oil resources of the Dominion. He thought they should try the oil-shale deposits at Orepuki. A very experienced man. who had worked on oilshale deposits in Scotland, had informed him that the production of <:il from the Orepuki shale could be made by proper methods a commercial success. Mr Smith said that the Taranaki people admitted that the Government had done something for the Taranaki oil-wells. The Anglo-Persian Company had b.ught the Taranaki oil refinery machinery and remov&fl it to Persia. We 11 ad not get a complete geological survey of the oilhVds of New Zealand;' and he thought that the best thing would be for the Government ro arr've at an agreement with the An.gk'persian Oil Company, who'could bring their army of geologists and other experts to New Zealand, make a full geological survey, and test deno"t < *. The Commonwealth Government had entered into a partnership -'til th" Anglo-Persian Company, which wp.= not p. purely private concern, the British , Government having - controTn? interest in it. to develop -he oil industry in Australia. He hop--;i that the Prime Minister would do v.vWhine; in that direction here.