STATE COAL PURCHASE

Evening Star, Issue 17191, 5 November 1919, Page 8

STATE COAL PURCHASE

DENOUNCED IN THE HOUSE.

ALLEGED SWINDLE ON THE STATE.

r A “GO-SLOW” REJOINDER.

£Feom Our Parliamentary Reporter.]

WELLINGTON, November 5,

While members were discussing the State coal mines votes in the Supplementary Estimates during the early hours of this morning Mr Semple rose and expressed the opinion that the purchase of the coal property in the Huntly district by the State proved a good thing for the Beliefs of the property. The member said ho had been given to understand that the syndicate bought the property for £12,000, and a few months later sold it to the Government for £55,000. He,considered, in short, that ifc_ was a swindle on the people of the Dominion. Sir William Fraser said that the purchase was made before he took over the department, but he questioned the wisdom of the member in making such a statement. The Hon. W. D. S. Mac Donald, who was Minister of Mines in the National Cabinet, expressed an emphatic opinion that the member would not be allowed to make such a statement outside the House without incurring consequences,. He went on to say that this coal property was purchased after careful estimates had been made by the Government and other experts, who put the quantity of coal available at between 12,000,000* and 14,000.000 tons. The whole proposition was carefully considered and worked • out before the department decided to purchase. The property was not heaped on to 'the Government by any syndicate or by a swindle at all. It was purchased “after the experts had advised.the Government. The experts considered it to be the best thing in New Zealand as a State coal propose tion.

Mr Semple: I do not accuse the late Minister or .the present Minister of anything to do with the swindle, but what'l said I repeat. I question the wisdom of the department in paying £35,000 for the property, and I say that the people who purchased the lease and sold it to the State perpetrated a swindle against the State.

Mr Massey: I know very little of what happened at Huntly, as I was away from the country at the time, but even if the price paid did happen to be high the difference it made was as nothing compared to what the miners were doing by the “go-slow” policy. It was the silliest and the most nseless policy that could be conceived. How long it would be allowed to go on he did not know, and what the miners were driving at he did not know; but they had certainly suffered as much Joss themselves already as they were ever likely to receive in benefits from the mineowners. It was not in the interests of the country that this sort of thing should be tolerated, and it would not be tolerated very much 'longer. Mr Massey declared that a very serious injury was being done to the country, which had to go outside for its coal and pay four times the proper price for it. Mr Hol\nd: Why don’t you pay the miners more, then?

.Mr Massey: I believe the miner is entitled to a better wage than any otherclass of worker, but when unreasonable demanos are made we have to oppose them. , . The Hon. W. D. S. Mac Donald stated that the Mines Department had the option of purchasing the Pukemiro area or paying a royalty, which. would be less than that paid by the mining company in the same district. It would be possible to get coal at a cheaper rate than the company. It was reasonable for the member to make snre that he knew what he was; talking about before making a wild statement.

Mr P. Fraser said he had heard allegations which he thought proper to bring before the Minister’s notice. He did not know whether the allegations were correct, but he wanted an inquhy made.