STATE MINES.

Manawatu Standard, Volume LIII, Issue 62, 9 February 1933, Page 3

STATE MINES.

REPLY TO CRITICISM OF PROFITS. The statement that an entirely erroneous view of the profits of the .state coal mines for last year had been taken by the Associated Chambers of Commerce in its recent criticism of the working of this department, has been made by the Minister of Mines, Hon. C. E. Macmillan, in a reply. The Associated Chambers said that what was not generally appreciated was that when extraneous revenue was disregarded, there was actually a substantial loss on the .year’s working, and on analysis the profit of the State mines vanished, that £8402 for royalties received on account of coal from Crown lands was included in the latest accounts, and that one private company alone paid £3033 of these royalties—more than the profit shown on the State mines. “The deductions to he drawn from these statements are wholly incorrect,” the Minister said. “The amount of £8402 for royalties received is that shown in the receipts and payment accounts, the amounts appearing in the.general profit and loss account being £5007 for royalties earned from the State Coal Reserve at Greymouth and £7Bl net royalty from the State- Coal Reserve at Waikokowai, McDonald Colliery area. Dealing with this latter item first, the land, which was fgreehold, was purchased and substantially developed by the Government at a cost of over £53,000 out of tho funds from the State Coal Alines Account, and, consequently, any profit from it is rightly a credit to the State Coal Alines Account. “In regard to the other royalties, those from the State Coal Reserve at Greymoutlr, the State Coal Alines Account had to bear the cost of prospecting and boring, and in many cases the expense incurred in driving and development work, and the cost of supervision generally of the small cooperative parties working there. Some of the largest competitors of the State coal mines have leased portions of their coal bearing lands, and also take credit in their accounts for the royalties received. “The profits of the whole of . the undertaking of the State coal mines, including the depots, etc., for _ 193132 before providing for a contribution of’£7Bßs to the sinking fund for redemption of loan capital and a special contribution of £SOOO to the Consolidated Fund in respect of administrative expenses of previous years, was £10,032, so that even excluding the royalties which have been credited the State Coal Alines Account would still show a handsome profit. “In order to remove any misapprehension, it is pointed out that the royalties on Crown lands which are outside the two State coal reserves are credited to the Consolidated Fund, Greymouth Harbour Board, Westport harbour revenue and other accounts as prescribed by the Coal Alines Act, 1925 - , , , . “It should also not he overlooked that the State Coal Alines Account is a liberal supporter of research, and last year the account paid toward the cost of research work carried out by the Department of Scientific and Industrial Research about £IOO more than all the other coalmining companies and coal-mine owners together. It is quite evident that the statement was prepared without the writer being aware of all the facts and without a close examination of tho account.”