MACDONALD MINE

Evening Post, Volume CX, Issue 23, 26 July 1930, Page 13

MACDONALD MINE

LEASE' TO COMPANY

ACTION CRITICISED

The leasing of the Maedonald mine to the Glen Afton Colliery Co. was the subject of considerable discussion in the House f Kep'resentatives yesterday.

The Leader of the Labour Party (Mr. H. E. Holland) asked the Minister of Mines whether in view of the reported decision of the Government to install a steam plant for the production.of electrical eijergy in the coal area of the Waikato, it was proposed to develop and work the' Maedonald Colliery, owned by the Government, as a State mine; and, if so, what steps the Government proposed to take in that direction. The Minister of Mines (the Hon. A. J. Murdoch) replied: "It is proposed to" open the Maedonald mine as a State colliery. Negotiations for 'the leasing of the area have-just been completed." The Leader of tho Labour Party said that perhaps tho. Minister might place before the House tho details of tho arrangement between his Department and the Glen, Afton_ Colliery Co. It was a most sjrious thing that the State colliery in which a huge capital had been, expended should be handed" over1 to a private company. The Government had fixed the royalty for this mine at Bd, whereas the smaller mines had to pay Is. The House was entitled to fuller information on the matter.

Mr. M. J. Savage (Labour, Auckland WoBt) said that the "Auckland Star" had an exclusive statement in regard to the colliery, and the House was at least entitled to the information. The Press was continually getting information that was denied to members. If the Government had leased the Maedonald mine for forty years, the Auckland province could say good-bye to a State mine. It was practically selling the mine, .arid it was very important that the Minister should state immediately what the arrangements were. Mr. W. L. Martin (Labour, Baglan) said that there had been a number of men who were prepared to; work the mine on a co-operativo system; but had been turned down. Yet the Government had placed it in private hands. He believed that the Glen Afton people would work the mine as well as anyone, but there was a principle involved. The previous Minister had been intent on .selling, the mine, and it was only when the trouble at Aiapuni. aroso that he cancelled the sale. Ho entered an emphatic protest against the J manner in which the business had been done.

The Minister of Mines said he recognised that the answer was not adequate, but it was his intention to make a statement. Further, if the members of the Mines Committee wished to see the particulars of the negotiations they were at their disposal. Mr. R. Semple (Labour, Wellington East):.'"After the damage has been done."

Mr. 'Murdoch said that the damage had not been done. Up to the present the mine had been very costly to the Department. A provisional lease had been signed by the Government stipulating that the company had to supply coal to the Auckland Power Board, and the royalties had been fixed subject to this provision. He had made inquiries into other sources of supply for the board, but none of the quotations had been as good as that which the Glen Afton company, offered. The Power Board had been prepared to supply power for the Auckland province, and in view of the urgency of fhe case he had taken the responsibility of accepting 8d per ton royalty. Immediate action had been required, because the agricultural industry of the province needed the power.