OHAI MINE

Evening Post, Volume CXXXVIII, Issue 82, 4 October 1944, Page 6

OHAI MINE

GOVERNMENT CONTROL

REASONS GIVEN

. A Press Association telegram from • Invercargill published on Monday an- . nounced the resumption of work under l Government control of 53 employees ; of the Mossbank Coal Company's mine ; at Ohai, one week after they had re- - ceived dismissal notices. The Government's reasons for reopening the colliery were explained by the Minister. _of Mines (Mr. Webb) last night. He . said that late on Friday the Govern- ' ment had decided to reopen'the colliery on the basis of a price to be negotiated between the company arid the Mines Department, or failing settlement by negotiation at a price to be determined by arbitration. 'In previous statements I have indicated that the Government had endeavoured to assist the Mossbank Coal Company to establish its mine on an economic basis," said Mr. Webb. "In addition to the ordinary subsidy* which a]l collieries receive as .part of the stabilisation policy, this . colliery was granted by way of special subsidies an amount of £6450 for this purpose since March, 1943, and the mine has also been greatly assisted by the State in other directions." The position, however, could not be regarded as very satisfactory by the Government, said the Minister, as the company was without the services of a manage^ and its financial position did not enable it fully to equip the mine with adequate-plant. The Govf««? ent 1^ any further assistance would be tantamount to subsidising inefficiency. ' Mr. Webb said the operations of the company had been unfortunate in many respects, and he fully appreciated that •«L c circumstances the decision of unUwa CblT t0 C6aSe °peralioDSTO IN BEST INTERESTS OF NEW ZEALAND. faJAw overnment was faced with the l 2 &_« a coal position existed in the Dominion, and that at-this time everything possible should be ddne to increase production even if it ' were necessary to lose a shilling or so per ton on some mines m the process It Jw *??£ reallsed' said the Minister, SS « ithe + ™lne were allowed to close S „L' engthX Perioda substantial loss la™ 2 V + °i, uld/? sult owin St 0 the collapse of the drives. In addition the ?0° ™g n °f' ? e -mmc ,had thrownabout ™J? n- ?!?* of. ?m Ployment and these men could not secure work in other Sne eraffv thtLri Strict' In the eoa^ f»» ~? y there was an acute shortW nJ f^ommodation, hence the clos- , ing.of the mine presented an immedi- *£ iE? bJffi_ °f in * employment horned ffi e5? Wlthm reach of their nomes. The Government felt that the best interests of the Dominion to thes? circumstances would be served by xl opening the colliery and placing the miners on the jobs atwhich th«S were ; accustomed and efficient. " y • definSv di? Q CUlt aU hls sta Se to state . Sr« l eT the quantity of coal in the JJrtthS? Pi operft said the" MiSster! : 5&,Sw ™as W less than 50»000 toni . ex£aSe Sd V^ 3 W£ ich could S ' aSn^wP 6 Mmfs Department had ?u ?x? e(l for one.of its managers on • contrTf Sof Ct°h a P St t0 1° to 0»»i to taS : control of the work, and the Denart ■ ment .would install adequateTnlantPSnii ■ g^.undJ,° be won as cheaply as nns Sin?%? •? artxn^ t in installing new :