AN OIL FIND.

Taranaki Daily News, Volume L, Issue 60, 19 September 1907, Page 4

AN OIL FIND.

Wellington, Sept. I.'t. The New Zealand Coal and Oil Company is petitioning Parliament in regard to their shale field and oil works at Die puki. They complain that after Iho (iovcrninent had granted a bonus for the. production of oil locally this duly was taken olf kerosene oil. The, company could not compete with the duty free oil and the works, which had been erected at a cost of £IOO,OOO, luul finally to be closed down, the loss to the company being enormous. It is pointed out that owing to the costly labor rates in Xew Zealand, the initial expenses of the company in the erection of the works were greatly in excess of the amount they were estimated to cost. The petition stales that if the conditions in New Zealand were the same as those in Scotland, a profitable industry could be established without any assistance, but the costs in New Zealand are more than double those in Scotland. For instance, the cost of mining and delivering shale to the retorts is 4s 3d per ton, whereas the cost here is never less than 10s per toll, and generally nearer 12s per ton. Other costs are higher pro rata. It is urged that the works cannot, therefore, be started without adequate assistance, though probably, when the managers have become acquainted with all the local conditions and circumstances, cheaper methods will be found, hut it is certain that no capital can be found to restart the works unless some assistance is granted. Two of the directors visited Xew Zealand in February and March last, and it is alleged a strong desire was expressed on all sides to see the works in operation again. "There is no doubt," says the petition, "a large industry could be created which would employ a great* many hands, bringing great benefit not only to the district in which the works are situated, but to the colony generally." The importance of the industry is emphasised owing to the decision of the British Admiralty to use oil fuel in the navy. It is stated that the difficulty which is confronting the Admiralty at the present time is to obtain supplies of oil from British and Colonial territory, that being absolutely necessary in time of war. As such supplies cannot be found and made use of at short notice, it is necessary that they should be acquired in time of peace. The company, learning of the Admiralty's requirements in this direction, interviewed them by appointment accompanied by the High Commissioner. The company has since received a letter from the Admiralty enquiring whether the company would be prepared to enter into a contract to supply annually for five years up to 50,000 tons of oil, starting at 10,000 tons and raising by 10.000 tons to 50,000 tons, at a New Zealand harbor suitable to the Admiralty, price and quality to be satisfactory. At the present time, adds the petition, there is only one such source of supply available, viz., British Burniali. If this company can arrange a supply, New Zealand can be added. The advantages of such an arrangement, if it can be carried out, are minifold. It will, in the first place, bring the Australian Squadron into New Zealand waters; it will enable the Orepuki works to give employment to a greater number of men; it will bring into the colony annually a large amount of British money, and it will turn the shale, which is now valueless, into value, nine-tenths of which would probably be retained in the colony. In order to accomplish this, the company pray that a bonus of 6d per gallon be granted on all oil produced for five years from the date of re-start-ing the works. It is further asked that the impost duties on candles, wax and sulphate of ammonia be raised in order to secure in some measure the home market for these products.