PURCHASE OF COALMINES

Dominion, Volume 37, Issue 278, 21 August 1944, Page 4

PURCHASE OF COALMINES

Charge Of Inconsistency “I do not think it necessary to comment further on- Mr. T. O. Bishop’s latest attempt to exnlain why, on the one hand, be finds tt expedient to advise the Government to purchase the Dobson, Wallsend and Blackball collieries, at the request of the companies concerned and, on the other, is determined to condemn the transaction as unjustified expenditure of public money,” said the Minister of Mines, Mr. Webb, on Saturday. No question of assisting the Blackball or Dobson collieries with special subsidies was ever raised by the vendors, said Mr. Webb, and the Wallsend owners were actually assisted in that way for some years before they pressed for the State to buy the property. Nor did Mr. Bishop, as chairman of the Coal Mines Council, recommend the Government to grant special subsidies. The Minister quoted the following extract from Mr. Bishop’s report as chairman of the Coal Mines Council on the Dobson mine:—“The State should undertake development work to the dip with a view to proving the extent of coal in that direction, and should later proceed, with the extraction of pillars. For this development work some capital expenditure will be required, because the extraction of pillars will have to be deferred till the development work has been brought to an end. In the final issue, however, the capital should be recovered and the extraction of the developed pillar coal should be profitable.” “This is the policy which the Mines Department favoured and has actually adopted,” said Mr. Webb. “It was known that it would mean increased costs and lessened output, and yet we now find Mr. Bishop criticizing the very scheme which- he advised the Government to put in operation.

“In regard to Mr. Bishop’s reference to a mine in the Ten Mile Valley near Greymouth, all the mines in this area are small co-operative ventures. At no time did the State ever contemplate buying one of these mines, nor did the question ever come up for consideration. “Another interesting point has arisen in connexion with the recent criticism of the Mining Controller and of myself in connexion with the affairs of the Mossbank Coal Company near Invercargill. I stated at the time that the charges by the Associated Chambers of Commerce and by Mr. Bishop were unfair and untrue. Mr. Denham. M.P. for Invercargill. has just handed to me the following telegram received by him from the Mossbank Coal Company:— “‘ln view of negotiations with Government very much concerned over statement appearing “Southland News” 14th instant apparently copied from north newspapers citing position our company without sanction or verification from directors whatsoever. Would be grateful if you would assure Mines Department that statement was not published with our sanction.’

“Here again.” said Mr. Webb, ‘‘is an opportunity for the public to judge for itself the truth of the matter, this time concerning Mossbank. It seems evident that the Associated Chambers of Commerce must have obtained its, information from Mr. Bishop, whose mischievous attempts to mislead the public are unworthy of him. specially in view, of the privileged nosition he occupied in connexion with the coal mining industry in-4he three, rears of the war since 1940. ’