IN PUBLIC INTEREST

Evening Star, Issue 25226, 13 July 1944, Page 8

IN PUBLIC INTEREST

WHY MINES WERE TAKEN OVER MINISTER DENIES NATIONALISATION POLICY (P.A.) JXVK'KCARGILL, July 12. " 'l.'lie Government's policy is- not one of the deliberate nationalisation of-the coal mines, as suggested by Mr Stronaeh Paterson, president of the Associated Chambers of Commerce, in his address at New Plymouth. Mines have been taken over only in cases where it was apparent that such action was necessary in the public interest." This statement was made by the Minister of Mines, lion. P. 0. \Vebb, in an interview in .Invercargill to-day. lie was replying to the statement of Mr Paterson that Mr Webb, as Minister of Mines, was following a deliberate policy of nationalisation of mines. Mr Webb explained the reasons for taking over the Blackball, Dobson, and Wallsend mines, and referred to the purchase of the West-port-Stockton mine. "The West-port-Stockton colliery was taken over in the national interests," he said. "It cost the Government £IOO,OOO last year to keep this mine going and the shareholders had not drawn dividends since its inception. The State has paid back all the share capital, to the delight of hundreds of shareholders who had given up all hope of a dividend. " About 300 miners at Stockton, many of whom had spent their all in building their own homes, were faced with the mine closing down, with no other work in the district and with no compensation for their homes. The Government felt that it had „a duty to these men, who had worked* under adverse conditions for a long period, and so it. decided to take over the mine and adopt the open-cast method of working. There should be' worS for the miuers in the township for the next 25 years. I consider that the taking over of this mine was an excellent move on the pari, of the State." .Mr Paterson had complained that the Westport-Stockton colliery -was taken over without prior negotiation with the company, Mr Webb said. This was because the Government wished to prevent undue gambling in the company's stocks which would have enabled a few "get-rich-quick" 'people to hn.y up shares and thus deprive the old shareholders of a reasonable return. If the State had not taken oyer the mines, the Minister added, tlie coal situation in New Zealand would have been very much worse than it was. Thu railways and electric power stations had benefited from the production of the State mines. Mr Webb said that Mr Paterson had said-that on the outbreak of war the capacity of the New Zealand mines was adequate to meot the increasing war demands. This was far from being the case, said the Minister. War demands had increased the requirements of coal for the railways by 50 per cent. The cutting off of Australian supplies had put a big tax on the New Zealand mines. On the question of absenteeism in coal mines, to wkicil Mr Paterson had referred, Mr Webb said that the allegations about absenteeism were exaggerated. "I wish to say," he added, " that during the war the miners of New Zealand have made a great effort. The mining industry has done splendidly. Petty, carping criticism is not justified." .