STATE COAL PURCHASE

Alexandra Herald and Central Otago Gazette, Issue 1207, 12 November 1919, Page 2

STATE COAL PURCHASE

DENOUNCED IN THE HOUSE. ALLEGED SWINDLE ON THE STATE. A "CO-SLOW" IiEJUINDEIL WELLINGTON, November 5. While members were discussing the State coal mine* votes in the Supplementary Estimates during the early hours of this morning Mr Semple rose and expressed the opinion that the purchase of the coal property in the Huntly district by Jhe State proved a good thing for the sellers of the property. The member said he had been given to understand that the syndicate bought the property for £12.000. and 3 few months later sold it to- the Government for £55.0C0. He considered, in sho't. that it was a swindle on the people of the Dominion. Sir William Fraser said that the purchase was made before he took over the department, but he questioned the wisdom of the member in making such a statement.

The Hon. W. I). S. MaeDonald. wlw was Minister of Mines in theNation.il Cabir.et. expressed an emphatic opinion that the member would not be allowed to make *uch a state-nent outside the House without incurring ennsequeuces. He went on to say that this coat property was purchased after careful estimates had been made by the Government and other experts, w'ho put the quantity of coal available at between 12.000.000 and 14.000.0C3 tons. The whole proposition was carefully considered and worked out before the "department decided to purchase. The property was not heaped on to the tiovertimerit by any syudicste or by a swindle at all. It was purchased after the expert* had advised the Government. The experts considered it to be- the best tiling in New Zealand as a State coal proposition.

3lr Semple : I do not accuse the late ?.tini»ter or the present Minister of artything to do with the swindle, but what I said I repeat. I question the wisdom of the department in paying £35.000 for the property, and I say that the people who purchased the lease and sold it to the State perjietrated a swindle against tho State.

Mr Massey .- I know very little of what happened, at Huutly. as I was away from the country at the time, but even if the price paid did happen to be high the difference it nude wss as nothing compared to what the miners were doing by the "go-slow" policy. It was the silliest and the most useless policy that could be conceived. How long it would be allowed to go on he did not know, and what the miners were driving at he did not know ; but they had certainly suffered as much hat themselves already as they were ever likely to receive in benefits from Ihe nineowners. It was not in the interests of the country that this sort of thins should be tolerated, and it would not be tolerated very moch longer. Mr Massey decloved that 1 very serious injury vras being done to the country, which had to co outside for its coal and pay four times. the proper price for it. Mr Holland: Why don't you pay the miners more, then!

Mi Nawj: I believe the miner u ontitled to a, better wage than any other ela«s of worker, but when unreasonable demands are made we have to oppose thera.

The 800. W. I). S. MacDoiiald stated that the Mine* Department had the option of purehasiug the Pukemiro area or paying a royalty, which would be Ic.-.-thnn that paid by the mining company in the came district. It would be possible to" get coal at a cheaper rate than the company. It wis reasonable for the member t.i make sure that he knew what h<was talking akmt before making a wiM statement.

Mr P. Eraser said he had heard allegations which he thought proper to bring before the Minister's notice. He did not krrow whether the allegations were correct, but be wanted an inquiry made.