PRICE £30,000

Auckland Star, Volume LXXII, Issue 168, 18 July 1941, Page 6

PRICE £30,000

STATE PURCHASE

BLACKBALL COAL MINE (bv Telegraph- —Parliamentary Reporter! WELLINGTON, this day. Ileplving to an urgent question by Mr Kvlo (National, Riccarton) in the House of Representatives yesterday, the Minister of Mines. Mr. yW). J-,vo de a is of the assets of the Ul icknall Coal Mines Proprietary, l imited which were purchased recently bv the Government, and also *.i<l .hat ll.c comprised freehold 'and of just over 1 T'U) acres movable plant valued b> he State Coal Mines at £:?G.OGO. less ■I.M of removal and selling expenses f.VMHi: •-"» cottages valued at £11.-00, and unused stores valued at £0000. Other assets consisted of fixed plant buildings. railway sidings. and nihce- all of which were included in tile sale. The buildings, cottages and plant were covered by insurance fL 'The'price paid by the Government, I said the Minister, was £30.000. which «v a s substantially less than the amount which the company could have realised had it proceeded to sell its asset- piecemeal. That was the basis of his statement thai the companv had made a substantial contribution in assisting the Government in its effort to rehabilitate the C9llierv and make it an economic unit • Even if the colliery itself prove 1 uneconomic to work —and this is b> no means an established fact—the plant and stores could be utilised by the State collieries, so that there would be no financial loss to the State.'" said the Minister. Mr. Webb also said that the deci .-ion of the Government to purchase the assets of the company was made bv Cabinet before he went to Blackball and was not a hasty one. as the Mines Department had full and up-to-date knowledge of the removal value of the plant, equipment and buildings. The determination, however. to continue to operate the colliery as the sole producer was ! arrived at only after he had made 'an inspection of the pit in conjunction with colliery managers, experts. ; and representatives of the union, .and after 'he miners had agreed to work the mine on a contract basis. Some alterations were being made l to enable a daily outpi '. of 2-">0 tins.