NEW ZEALAND SHALE DEPOSITS

Gisborne Times, Volume XXV, Issue 2186, 16 September 1907, Page 1

NEW ZEALAND SHALE DEPOSITS

COMPLAINT FROM A 4 ’MINING

COMPANY. (Special to Timos).WELLINGTON.Sept, .13. Tho New Zealand Coal and Oil Company is potitioiiing Parliament in regard to itheir .sliulo field and oil-works at OropukiuThoy complain that after (the Government had granted a bonus for itlio production of oil locally the duty was taken off kerosene oil. The. company could not compoto with tlio duty freo oil, and tlie works which had been erected at a cost of £IO,OOO, had finally to bo closed down; itke loss ito the company being enormous. It is pointed out

that owing to' tlio costly labor rates in New Zealand tho initial expenses of tho company in the: oreotion of tlio works wore greatly in excess of tho amount they were estimated to cost. The conditions (ill New Zealand were not ,tlio same as those in Scotland. A profitable industry could be established without any assistance, but tho costs in New Zealand arc more than double these in (Scotland, ltor instance, the cost of mining and delivering shale ’is 4s 3d por ton,

whereas tlie , cost here is never less than 10s per ton, 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 tlie local conditions and circumstances cheaper methods will be found, but lit is certain that no capital can be found to re-start the works unless some assistance is granted. Two of tlie directors visited New Zealand in February and March last, and it is alleged a strong desire was expressed oil all sides to see tho works in operation again. There is no doubt, says tlie petition, that a large industry .could be created : which would emj>loy 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 tlie navy. It is stated that the difficulty which is confronting the Admiralty at the present time is to obtain 6upplies of oil from British and colonial territory, 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 tlie 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 tlie company would .be prepared to eiiter into a contract .to supply annually for five years up to 50,000 tons of oil, starting at 10,000 and rising by 10,000 to 50,000 at a Now Zealand harbor suitable to the Admiralty, price and quality to be satisfactory. xlt the present time, adds the petition,' there is only on 6 such source of supply available, viz., British Burma. If this company can arrange a supply New Zealand can bo added. Tlie advantages of such an arrangement, if it can be carried out, are manifold. It will in the first place bring the Australasian squadron into New Zealand waters, it will enable the Orepuki works ito give employment to a greater number of men, it will bring into the colony annually a largo amount of British money, and .it will turn the shale, which is now valueless, into .a value nine-tenths of which would probably be retained in

the colony. In order to accomplish this the company pray that a‘bonus of sixpence per gallon he granted on all oil produced for five years from itliq. date of re-starting tlie works! It is further asked that the import duties on candles, wax, and sulphate of ammonia be raised in order to secure in some measure the homo market for these products.