GLEN AFTON LEASE.

New Zealand Herald, Volume LXVII, Issue 20628, 29 July 1930, Page 11

GLEN AFTON LEASE.

AGREEMENT CRITICISED.

EFFECT ON INCOME TAX.

A MINEOWNER'S PROTEST.

Mr. G. Pollock, secretary of the Pukemiro Collieries, Limited, writes:--Tiio action of the Government in leasing the Mac Donald Mine to Glen Afton Collieries, Limited, has been severely criticised in the House of Representatives, and certainly not without just cause. Mr. Veitch, the previous Minister of Mines, is evidently responsible for the preliminary negotiations for the disposal of the mine, such negotiations being finalised by Mr. Murdoch without reference to tho House, notwithstanding the fact that the matter is one of vital national importance. When questioned on the subject the Minister stated that the mine was leased to Glen Afton Collieries for the purpose of insuring ample coal supplies for the Auckland Power Board during the cessation of operations at Arapuni, and further that the dairy producers of the Waikato, who ar3 owners of the mine, would be assured of supplies for many years. With regard to supplies for the Power Board, he states that that body appealed for protection, as a combination of Waikato coalmine owners was pressing for higher prices. Mr. Murdoch also stated that he had mado enquiries as to other sources of supplies, but tho quotations obtained were not considered equal to the prices at which Glen Afton would contract if they secured tho lease. Both these statements are entirely erroneous. In the first instance, when the Power Board resumed activities at the power station, King's Wharf, they were charged the ruling price for slack coal tvhich had obtained for the past two years, and at no time had the Waikato companies been asked to tender for the whole of the Power Board's supplies; and in the second place, tho Waikato companies had not at any time been asked by the Government

to submit prices. On the face of what has been done it would appear as though the whole matter lias been rushed through with undue haste, as tlio price accepted for crushed coal is much higher than would have been charged by the alleged combine of Waikato companies under existing conditions; but if the other companies participated in the same trade privileges as Glen Afton Collieries, Limited, viz., exemption from payment of income tax, there is at least one company prepared to supply crushed coal at 2s per ton below that quoted as the contract price, provided the quantity required was sufficient to warrant the expense of installing crushing machinery. Glen Afton Collieries have to be con-

gratulated upon being able to make such a profitable contract for themselves; at (he same time it is a matter for regret that the Government should see fit to literally throw away money, when at this

time it is necessary to increase the revenue as much as possible, as is evidenced by the recent Budget proposals. Had the other companies been asked

to tender, and been successful in same, mora continuous work would have been afforded to hundreds of men who are at present averaging about four days' work per week, while on the other hand Glen Afton Collieries boast of working continuously throughout the year, and that without Power Board contract. In conclusion it might be stated for information generally that Glen Afton Collieries compete in the open market with the other Waikato companies to a very great extent, which must result in a huge anuual profit, yet they are exempt from payment of income tax. The reason for this anomaly must be best known to the Government and themselves, and if there are many other companies trading under similar conditions then there is no wonder that the incfime tax payer has to suffer a 10 per cent, increase.

PROTEST FROM MINERS. WORKING FOUR DAYS A WEEK. Mr. J. Walker, of Pukemiro, secretary of the D.C. North Island Miners' Union, writes:—l would like you to insert this, as I think it only right the public should know that there is something wrong. After reading the glowing account of how the Auckland Electric-Power Board were going to get all their needs supplied with coal of quality from Glen Afton, the following telegram was sent to Mr. H. E. Holland, Leader of tlie Labour Party:— "llopo you can use influence to combat machinations of dairy combine supplying coal to Government subsidised power plants whilo other mines in locality arc working four days per week. Local companies can supply coal to crush at less than 15s 6d per ton. We consider that, companies competing in the open market should pay income tax.—J. Walker, secretary D.C. North Island Miners' Union."

I would like to point out that Glen Afton being a subsidiary of the New Zealand Co-operative Dairy Company is not paying income tax, also that the Power Board has entered into a contract with the Glen Afton Company without calling tenders, which is contrary lo tho j2 locc duro of public bodies.