SPIRITED REPLY.

Auckland Star, Volume LXVIII, Issue 200, 24 August 1937, Page 9

SPIRITED REPLY.

GOLD MINING BURDEN. MINISTER'S CRITICISM. COMPANIES' POINT OF VIEW. ~~~~ i (By Telegraph.—Own Correspondent.) DUNEDDJ, this day. A spirited retort to the Hon. P. C. Webb's criticism of his remarks regarding the heavy burden placed on gold production companies by the gold export tax was made by Mr. J. £. Wheeler, chairman of the Okarito Gold Dredging Company. The . gist of the criticism by the Minister of Mines was that the Government had done much to assist mining in recent years, and in doing so had spent large sume to aid and encourage prospecting. "These facts I am not disputing" said Mr. Wheeler, "but it seems that ehareholdere or prospective shareholders in a gold mining venture do not participate in these benefits which have doubtlese been received by other people, and unless a profitable return can be secured by investors in . a gold mining venture capital will cease to be forthcoming. If the Minister thinks it is any ealve to the feelings of shareholder* to know that part of the gold tax is spent on employing men prospecting his view does not agree with that of those intimately in touch with gold mining. The general opinion is that thia monay is wasted. "Investment, Not Gamble." Mr. Webb eays he wants gold mining to be an investment, not a gamble. This, of course, is Mr. Webb, the Minister of Mines, speaking, but Mr. Webb is a practical mining man and knows only too well that in a. geologically disturbed country-'iUce'Ueir Zealand such a prospect is visionary. With restricted goldbearing areas there is a limit to the amount of money that can profitably be \ spent on prospecting.

"In the prospectus of a. recent mining flotation in which Mr. Webb's name figures as one of the directors, reports of mining engineers and tabulated results, of boring are most alluring. This concern, which started with such high hopes, is now in liquidation and the money invested has been lost. Has the money (both Government and shareholders') spent on geophysic survey been oLgreat benefit to the industry?

"Take two instances with which Mr. Webb is familiar. Weatherstones and King Solomon. Both of these had the benefit of the latest. scientific methods before the Government subsidised the ventures. We all know the final results, and both are closed down.

Experts Not Infallible. "The Government," continued Mr. Wheeler, "was quite right in extending a helping hand to these concerns. It was its duty to do so, but the results prove that the Department's experts are no mere infallible than the usual run of mining engineers, and that the closest investigations may indicate prospects that are not realised. Has Mr. Webb sufficient confidence in his Department for it to investigate every mining proposition and accept the responsibility of issuing a certificate to the effect that the venture had been approved of before it is allowed to go on the market?"