ONAKAKA IRON

Evening Post, Volume CXI, Issue 84, 10 April 1931, Page 14

ONAKAKA IRON

COMPANY'S LIQUIDATION

A MATTER FOR REGRET

(By Telegraph.—Press Association.) NELSON, Pth April. The decision of the Onakaka Iron and Steel, Company to go into liquidation is the subject of a statement by tho chairman of (he company, Jlr. John Leggo. Referring In the question ks to whether the works have been j.ncl aye worthy of Government Kuppnrl, Mr. Lcggo says the best part i;.C i-, 2.10,000 in cash had been found by rharchoklcrs and debenture-holders.

"These people for nine years have struggled against tremendous odds in an attempt to establish an iron ■"idustry in New Zealand. Tlio opposition took the form of cutting prices, cvr.ii to the extent of dumping. Who, then, are the gainers through the establishment of the Onakaka works V asks Mr. Lcggo. "Most certainly the users of iron and consequently New Zealand purchasers of articles -nade from iron. "When the Onakaka works commenced iron ivas £1(1 a ton: to-day, f.o.b. Onakaka iron is £5. The same condition applies to i:ist-iron pipes. Eighteen months ago imported pipes cost in New Zealand £13 10s a ton; to-day Onakaka pipes are 3olling at £10 10s delivered.

"The benefits have been widely enjoyed by users and consumers, and certainly not by shareholders," Mr. Leggo continued. "Anytiling from ]D oto 200 men have been constantly employed, and the wages are up to £1000 and over a week, plus thousands of pounds spent among tradespeople for supplies. Onakaka has been producing in the vicinity of £90,000 worth of saleable products a year, all purchased in New Zealand. That money has been circulating, not going out to India and. othor plaees^—quite a respectable amount to keep within our own shores. The- iron ore is obtained from the poorest land in the whole Dominion, and conies under the heading of primary products. The wealth, extracted equals that of mniiy farms, and is therefore so much added wealth to Now Zealand. EFFECT OF DEPRESSION. •*!Proni a purely national standpoint. I maintain that it would have paid the Government to help us in. our present financial difficulties," Mr. Leggo continued. "The amount we are - asking for will be eaten up in doles many times over before the men thrown out of work find employment. Most of the men are skilled or semi-skilled workers, receiving £50,000 a year. Our request to the Government did aot involve 1-Jd per head of the population. "With such assistance we could have carried on indefinitely. It would lave allowed us to moot all our liabilities excepting coal. In fact, it would have gone quite a little way toward that. "The principal contributing cause to the present failure is the prevailing depression. There is scarcely a foundry running full time, while some are not working even one-third time. This means we will have an accumulation of iron at the works amounting to approximately 2000 tons. Sales for the -past five months have fallen to a little over 150 tons per month, while in normal times they are 500 tons and over. The depression will lift, and all will regret that the Onakaka Iron Works are not then oporating."