Incentives Sought To Find Minerals

Press, Volume CII, Issue 30212, 17 August 1963, Page 14

Incentives Sought To Find Minerals

(brom Out Parliamentary Hejxrier) WELLINGTON, August 16. Ways of assisting the search for minerals in New Zealand were mentioned by members during the discussion in Parliament today on the Mines Department estimates. Mr W. E. Rowling (Opposition, Buller) asked that minerals should be “divorced” from the coal industry by the establishment of a bureau of mineral resources. Mr P. Blanchfield (Opposition, Westland) wanted a marriage “between the Gold-Mining Division of the Mines Department and the Forestry Department.

Mr Blanchfidd called for subsidies and taxation concessions on gold-mining These would attract overseas firms, particularly as the price for gold was £l2 an ounce, or four times what it had been when some of the West Coast mines had closed An Australian company which recommended opening up the mine at LyeU had been told by the county chairman that the Audit Office would not support the idea of having to form two and a half miles of road to get to it, said Mr Blanchfield.

Mr S. A. Whitehead (Opposition, Nelson) suggested that the Mmes Department offer facilities and even bursaries to enable students to continue their studies by looking for minerals in vacation time.

The Minister of Mines (Mr Shand) said he had examined methods of assisting prospecting by taxation. The Australian system had been established 30 years ago, when whole areas were in difficulty. Once this type of assistance was given, it was hard to stop. “Of aU the proposals put up. involving the shifting of dredges and the reopening of areas, not one of them would have been helped by taxation assistance,” Mr Shand said. Mr Blanchfield said that the Waiuta mine, near Ikamatua. was closed down many years ago. Techniques of putting down shafts had greatly improved, and it would be an easy matter to open this mine up again. Mr W. A. Fox (Opposition Miramar) said a Prime Minister had once said New Zealand had no minerals, only grass and water. The estimates showed that only £31.550 was being allocated for prospecting and research in the department It was not nearly enough. "I know we have minerals here that have not been discovered,” Mr Fox said ’There are areas where scientists have said there are

minerals, and which have not been exploited." Mr Shand said the amount mentioned was by no means all that was spent in the department on research. He did not think enough was spent—but it was more than that.

The Waiuta mine was closed down in July, 1951, because of a cave-in. The quartz reef is believed to have shown no signs of deterioration. but at the time it was considered not worthwhile to reopen the mine.