STATE COAL LEASE.

Auckland Star, Volume LXI, Issue 186, 8 August 1930, Page 5

STATE COAL LEASE.

CONTRACT AGAIN ATTACKED.

ALLEGED LOSS TO COUNTRY.

"SHILLING ROYALTY OFFERED."

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON", Thursday.

The assertion that the Government will lose between £25,000 and £30,000 a year through leasing the McDonald State mine to the Glen Afton Collieries, Ltd., was advanced by Mr. W. P. Endean (Parnell) in the House to-day.

Mr. Endean, who had been discussing methods of raising additional revenue for the country in times of stress, expressed the view that the letting of the McDonald mine should have been the means of augmenting the national

coffers to a greater extent than was the case. In the deal it had made, the Government was losing between £3000 and £4000 per year in connection with royalties, about £10,000 a year in taxation regarding the 118,000 tons of

coal the Glen Afton Company were selling to the public in competition with private trade, and approximately a further £15,000 a year in taxation concerning the coal that would he won from the McDonald mine and sold to the Auckland Power Board. The estimates regarding taxation were based on the taxes paid by the Pukemiro Company.

"In connection with the deal with the Glen Afton Company," the member added, "we may say that this company is losing between £25,000 and £30,000 a year. If all the Departments of State were being managed in the same way, it is no wonder that the Budget refers to a deficit of £3,000,000."

After describing the situation of the McDonald mine in relation to the Renown mine and the Glen Afton mine Mr. Endean declared that in order to work the McDonald mine the Glen Afton Company would he compelled to go a distance of two miles and a half over a mountain range to get the coal and then bring it back again, whereas the Renown tramway went within half a mile of the mine opened up by the Government. It was quite obvious that the access that was originally planned by the advisers of the Government should have been through Renown property.

Mr. Endean considered that had the Government made more inquiries it could probably have obtained the coal more cheaply. It would seem that the transaction had been rushed through, and that the coal owners were not in any way allowed to tender or submit prices. On July 11 Mr, H. E. Mackenzie, of the Renown Company, had made a telephonic offer to pay a royalty of 1/ a ton and gave a contract price, but this was ignored. The next development was the announcement that an arrangement had been made with'the Glen Afton Company and -the Auckland Power Board.

Mr. Endean said it was admitted ii} tie coal world in Auckland tliat during the last ten years the charge made in respect of coal royalties had been 1/ a ton.