Govt approves aid for Kanieri dredge; workers "happy”

Press, Volume CXV, Issue 33773, 20 February 1975, Page 1

Govt approves aid for Kanieri dredge; workers "happy”

(New Zealand Press Association)

WELLINGTON, February 19.

Phe Government has approved financial aid for the Kanieri gold dredge, which will allow it to continue working, according to an announcement by the Minister of Finance (Mr Tizard) this evening.

Mr Tizard, with the Minister of Mines (Mr Colman), said he understood a commercial loan had been approved by the Development Finance Corporation on terms and conditions acceptable to the dredge owner, Australian Mining and Oil Investment, Ltd (Amoil).

The Government had approved a loan of $125,000 contingently repayable on a profit-sharing arrangement. The company had also agreed not to approach the Government again for financial help.

On present gold prices, the Government would recover almost the full amount of the loan within five years, Mr Tizard said. If the gold price should rise, the Government would

recover further amounts by 1 ' interest of up to 8 per cent , ' per annum. . Mr Tizard said that the;' Government had also ob- L tained an undertaking from I, Amoil that the loan would be | repaid on a pro rata basis should the dredge cease operation within five years. ‘Quite happy’ This should ensure con-;, tinued employment for the', 40 men employed on the. i dredge. “We hope everything will; :be all right now,” said the. president of the Westland/ (Dredge Workers’ Union (Mr; ;N. Wafer), commenting on/ The announcement. Although the Government : :had made a loan, the amount; of the Development Finance; Corporation loan had not been announced and this/ would be important to the company, he said. “We do not know the full but members of the,

I staff appear quite happy from what they have heard from: | the Government,” Mr Wafer isaid. ; The 34 staff members were Ito have finished work toI morrow. ‘More equitable’ Mr Tizard said that the level and terms of aid to i Amoil which had now been (agreed were “more equitable to all the parties concerned and were more in keeping (with the potential benefits of I the project.” The original request for .assistance from the company had been unacceptable. Mr jTizard said, because the amount sought as a direct .grant was too large in relation to past profits derived I from the dredge, and because further financial assistance could have been sought. No details of the Development Finance Corporation .loan are available.