ONEKAKA PRIVILEGES

Grey River Argus, 8 October 1941, Page 5

ONEKAKA PRIVILEGES

WARDEN’S DECISION In Favour of Companies p.A. NELSON, October 7; A decision in favour cf the comnanies concerned in the dispute with the Crown over the forfeiture or mining privileges at Onekaka was given by the Warden, Mr T. E. Maunsell, in a lengthy reserved decision, delivered to-day. To the first question whether the mining privileges or any of them were, on the day immediately preceding the commencement of the Iron and Steel Industry Act, Marcii 14, 1937, liable to forfeiture, the Warden answered that they were so liable. But they would not, in fact, I have been forfeited if appropriate proceedings for their forfeiture had been taken. In his opinion, the Crown did commit a breach of the agreement, made in 1931 by the Government then in power, by preventing any chance of a sale to Pacific Steel Ltd., and. accordingly, a strong equity would be raised' against the olaintiff if an officer of the Crown had commenced a suit for forfeiture on 14th. March, 1937, and. accordingly, forfeiture would not have been decreed. The Warden added that he could find nothing justifying a sudden termination of negotiations with Pacific Steel, Ltd. It was common ground that Pacific Steel, Ltd., which kept on obtaining successive options to Durchase at considerable expense, were always willing to purchase, and establish an iron and steel works industry, if the required finance could be raised. There was no ,evidence that, at any time, the Crown, I through its Ministers or executive : officers, gave any encouragement to I this company to carry out the sale and purchase. Various proposals (were pressed by Pacific Steel, Ltd., from time to time in reference to the proposed transaction, but they were successively declined. Representations and proposals were made on behalf of Pacific Steel, Ltd. to the Ministers of the present Government from the time it came into power right down to the passing of the Iron and Steel Industry Act, 1937. At no time did any Minister indicate the terms upon which ,t would permit the establishment of the industry by private enterprise, and so permit the receivers to realise their assets.