LOWER GOLD PRICE MAY FORCE OUT WAIHI MINE

Grey River Argus, 29 October 1948, Page 4

LOWER GOLD PRICE MAY FORCE OUT WAIHI MINE

P.A. WELLINGTON, October 28. During the second reading of the Finance Bill to-night in the House, Rt. Hon. W. Nash discussed gold production. He said it was acknowledged that some goldmining companies would encounter difficulties, now that the return to parity had reduced the price of gold, in New Zealand currency, from £lO 15s 3d to £8 12s 3d an ounce. However, he thought that the majority of the companies would continue to operate profitably. The Waihi Company, he said, might be forced out earlier than otherwise, but the Government would do everything possible to expand the secondary industries and other activities in Waihi, so as to provide employment for those displaced from the mine. One concern, he said, last month took fourteen workers from the Waihi mine into other work.

Replying to Mr. F. W. Doidge (Nat., Tauranga), the Minister said that there could be discussions on the question of granting an increase in the price of gold, or some form of subsidy; but he did not think that it was desirable to subsidise the production of gold. Even though gold meant dollars, there were other forms of production that were more worthy of subsidy, which could also yield dollars. Mr. S. G. Holland (Nat., Fendalton), said the country had the spectacle of the Government, which said it was going to do everything for the mining industry, resisting a plea to save it. In one breath it had removed the export duty. In the next it deprived it of exchange premium benefit.