GOLD PROSPECTING

Greymouth Evening Star, 9 June 1934, Page 5

GOLD PROSPECTING

GREY MINING EXECUTIVE The monthly meeting of the Grey County Council Mining Executive was hold last evening; present, Messrs .1. W. Hannan (Chairman), ,1. Mu leave. A. Donnellan, J. Ryall, F. G. Davies, M. Keating (secretary), and S. W. S. Strong (engineer). Mr. E. J. Scoble (Inspector of Mines, Reefton) was also present. Supervisors Clark, Barber, Tindalc, O’Brien, Lewis, and Crase attended the meeting, and gave details of the work in progress by the men under their control. The Engineer reported on the prospecting of the development areas. He stated that bottom was reached in No. 3 shaft at. Mosquito Creek (four miles from Marsden), at 206 feet, when a very encouraging prospect was obtained from the wash. A sample was on exhibit. 7k measured cubic yard test is now being made. Two drives are being put in from the bottom of the shaft, to obtain data concerning the dip of the floor. Plans will be drawn up, and the*Engineer stated that he had made some trial surveys and levels for the two tunnels which will be started immediately into the main body of the wash. It is expected that approximately 20 men will be employed at an early date.

Red Jacks area: The men have been concentrating on No. 3 shaft, which is down to about 120 feet. A change was noted at 112 feet, and fine gold was reported by Supervisor O’Brien. This area also has possibilities. In the tunnel al Gow’s Creek, approximately 220 feet has been driven, and the men are making fail' progress. On the D.B. block at Blackball, No. 1 drive is very wet. It is in about 138 feet. No. 2 drive is in about 148 feet. The progress is quite fair, considering the trouble the men have had with floods and slips on the race line. The work done on the reefs in the Moonlight area gives encouragement for some worth-while development in the near future. Gold production for May totalled 89 ozs. 15 dwts., and the total number of men on subsidy is 369. A new office has been erected in the County Council yard, for the accommodation of the Engineer and staff administering the gold-prospecting scheme. Several matters were discussed concerning the progress of the men, and the various tracks into the reef area.

TAX ON GOLD The following circular was received from the Unemployment Board, and is published for the information of prospectors: — Tn reference to U.B. circularmemorandum No. 342 of the 12th ultimo,' a number of protests have been received by the Unemployment Board against the imposition of this "new” tax. It is stated that most prospectors spend the net return from their gold winnings upon necessaries and when they are called upon to pay tax on income derived during the previous twelve months, hardship is thereby caused. It has been hinted that the Board is inviting subsidised prospectors to evade their responsibilities by selling gold illegally. 1 should be obliged if you would make the true position known amongst the subsidised men under your control. The local press would no doubt assist in this respect. The Board has already advertised in representative papers throughout the Dominion the fact that an instalment of the general unemploymetn levy was duo on the Ist instant. and that a declaration of “other income” must be made within a month of this date. This tax, of course, is by no means a new one. The Emergency Unemployment Charge came into force in August, 1931, but from various reports obtained by the Board, it was learned that few gold miners wore furnishing correct declarations of “other incorm?.” Obviously if a man has income other than salary or wages, and in May of each year furnishes a “nil” declaration, he is committing an offence under the Act, and incidentally making himself liable to a fine of £5O. The authority for the charge on “other income” is contained in the Unemployment Amendment Act, 1931, and the Board has no power to exempt subsidised prospectors or any other class of persons from payment of the charge. In individual cases where hardship is pleaded, the person concerned should write to this office for an application form for exemption. The following points are relevant in answering various objections: — (1) Every person who receives income other than salary or wages (this includes relief workers) must declare such income within one month of the Ist May in each year unless he is wholly exempt from payment of the general unemployment levy. (2) It is not a tax on last year’s income but the income for the previous financial year is the basis laid down in the Act for assessment of the charge payable tliis year. (3) Gold miners who may have won a little gold during the past year are assumed to be still winning gold, and could, therefore, pay the tax out of their present income from this source. (4) The charge is payable in four equal quarterly instalments due on the same dates as the general unemployment levy. In individual cases the Board has power to postpone the due dates to avoid hardship. (5) Relief workers under Scheme No. 5 are exempt from wages tax on their relief pay, just the same as subsidised i prospectors. If these relief workers ; obtain casual employment to supple- ! ment their relief earnings, they are liable for the tax on their wages from [ such casual work. It. is, therefore, 11 quite equitable that gold miners should 1 1 pay the tax on. their net return from | gold winnings. (6) The only satisfac- | tory method of collecting this charge j is that laid down in the Regulations, and it is not possible to arrange any other procedure.