WAIHI’S GOLD DUTY.

Hauraki Plains Gazette, Volume XXXXII, Issue 2767, 26 August 1931, Page 8

WAIHI’S GOLD DUTY.

REDUCTION BY £l,OOO A YEAR. The inroads made on the revenue of the Waihi Borough from gold duty by the Government, namely in connection with the Waihou and Ohinemuri Rivers’ Improvement Scheme, and the uncertainty as to the measure of income to be derived from this source in the future, were discussed at a meeting of the Waihi Borough Council in committee on Thursday evening. Attitude of Minister. In introducing the business Mr Wallnutt said that while it was desirable that the matter should be dealt with in camera, thus permitting a full and free discussion of the question, there was no reason why .the decisions arrived at should not be made public. It would be remembered that oil the occasion of the visit to Waihi of the Minister of Mines he had taken the opportunity to bring the matter of the gold duty reduction before Mr Murdoch’s notice with a view to the subject being fully reveiewed and more especially the fact that the council had received no notice from the Treasury regarding its decision to deduct £l,OOO per annum from the amount accruing to the council from that source. The Minister had promised to bring the various points raised before the Minister of Finance. He (the speaker) had now received the following reply from the Minister of Finance: — “With reference to your minute on the attached memorandum dated the 9th instant, the following information is submitted regarding the ' various points raised in your memorandum to the Right Hon. the Minister of Finance/ The shortness of the noth e given to the Waihi Borough Council in connection with the reduction m gold duty from £6,000 to £5,000 is regretted, but if six months’ or one year’s notice had been given the reduction could not have taken effect until the financial year ending 31st March 1933, and in view of the present position of the national finances it was considered necessary to make the reduction effective during-the present year. The Borough Council’s statements regarding commitments were embodied in a previous letter to the Right Hon. the Minister of Finance, but as the local body’s estimates for the current year would not be finalised until some months after notice of the reduction was given, it is possible for the council to make provision for the reduced gold duty in the current year’s estimates. Hospital Amalgamation.

“With regard to the amalgamation of the Thames and Waihi hospital districts, it is understood that the Health Department is endeavouring to arrange amalgamation, but in any case the whole question will be included in the order of reference for the Local Body Commission, which it is proposed to set up. Finally, the amount owing by the Waihi Borough Council as at the 31st March last was £16,762 14s 2d for gold duty paid in years prior to 1930-31 and £3,370 18s for gold duty paid during that year. These figures have not yet been checked by the Audit Office, but arrangements are being made to notify the local authority each year of the actual amount of their indebtedness in respect of gold duty. It may be added that ■ the arrears date from 1922 as under Section 18 of the Finance Act of that year it was provided that any, sums which the Minister refrained from deducting from gold duty as authorised under the Waihou and Ohinemuri Rivers Improvement Act, 1910, should be regarded as a debt due to the Crown on demand made by the Minister and is recoverable accordingly.” Country Needs Money. > . Continuing, the Mayor said that Mr Samuel had promised to investigate the position when he went to Wellington. In the interim he (Mr IVallnutt) had written to Mr Samuel asking whether it would be advisable for a deputation representing the council .to visit Wellington, and to endeavour in the meantime to have the reduction postponed for three years so that the council might be in the position before losing further revenue to deal with the matter of repairs and replacements necessary in connection with the gasworks reticulation, which were estimated to cost in the vicinity of £3,000. That day he had received the following communication through Mr Samuel:— “With reference to the ' attached letter from the Mayor of Waihi, it is pointed out that in arriving at the decision to reduce the gold duty from £6,000 to £5,000, the main consideration was the relief that would be afforded to the national finances during the present, period of economic stress. By acceding to the Mayor’s request for a postponement of .the reduction for a period of three years, the Government would be defeating

the main object for which the reduction was imposed, and in the circumstances I regret that I am unable to depart from the decision already made. The Mayor’s remarks concerning the condition of the waterworks and gasworks are noted, but it is pointed out that owing to certain Treasury inscribed loans maturing during the period 1930 to 1934, the interest charges to be borne by the waterworks account will be reduced by £960 per annum, which is almost equivalent to the amount of the reduction in gold duty.” Council’s Decision. A general discussion followed, after which the following resolution was unanimously carried: — “Owing to the condition of the national finances and the attitude of the present Government, this council take nb further steps at the present' time with regard to the recovery of the £l,OOO gold duty deduction per annum, notified to this council on 31st March, 1931, in a letter from the .Secretary to the Treasury.”