LEASE OF COALMINE.

New Zealand Herald, Volume LXVII, Issue 20630, 31 July 1930, Page 12

LEASE OF COALMINE.

ROYALTY POINT DISCUSSED. CONCESSIONS ALLEGED. DENIAL MADE BY MINISTER. [r)Y TELEGRAPH. —SPECIAL REPORTER. ] WELLINGTON". Wednesday. A denial of nny suggestion Hint, concessions in royalties were being extended to the Glen Afton Collieries in the operation of the Mac Donald Mine, recently leased from the State, was made by tho Minister of Railways, Hon. W. A. Veitch, when speaking in the financial debatp in flie llouso of Representatives today. Until recently Mr. Veitch was Minister of Mines.

Mr. Veitch said that on going into tho matter rnoro closely bo had been assured that as far as the Waikato was concerned overy one of tho mines was paying sixpence a ton royalty, as against eii;htpence in tho case of the Mac Donald Mine. The amount being paid by tho latter mine could be revised at tho end of three years if tho Arapuni hydroelectric plant was started again and tho Auckland Power Board no longer needed coal. The Leader of tho Labour Party, Mr. 11. E. Holland : Why are new companies in tho South Island charged a shilling royalty ? Mr. Veitch said a shilling was charged in the South Island f"r bituminous coal of a much higher value than the lignite coal of tho Waikato. One member of tho llouso had said that be could secure a shilling a ton royalty for (ho Government in tho Waikato. Mr. Veitch wondered whether tho member would nnmo the company willing to pay that royalty. Verbal Ofior Alleged,

Mr. W. E. Parry (Labour —Auckland Central): I 3 it not a fact that a verbal offer of a shilling was made? Mr. Veitch: I have no knowledge of it and in any caso a verbal offer is of no value. Continuing, Mr. Veitch said tho associated coalminers of the Waikato wanted to charge the Auckland Power Board 17s 6d for "run of the mine" coal and 10s for slack, whereas under tho contract with Glen Afton Collieries tho board would get tho coal two shillings a ton cheaper in each case. Mr. J. S. Fletcher (Independent—Grey Lynn): But that company pays no income tax. "It is no good raising side issues," replied Mr. Veitch. "If members will allow mi? I want to complete niv statement. If any company in the Waikato were willing to pay fourpcnco more loyalty and charge two shillings a ton more for the coal that would not have been a very satisfactory bargain for tho department. Furthermore, under tho agreement tho Public Works Department can buy 300 tons a day at- the same prices as those charged the Power Board, and that might bo a big saving for tho Government if a power plant is established in the Waikato and if the Public Works Department has to buy coal. Wo are not bound to take coal, but the company is bound to sell at those prices if we demand U. Saving o! £25,030 a Year. "It is estimated that £25,000 a year will bo saved by the reduced prices," said Mr. Veitch. "Furthermore, tho Power Board would otherwise have bad to import coal from Australia and would have lost £BO,OOO a year. The Public Works Department would have had to compensate the board for thoso losses. Wo would have had to foot the bill and the Waikato coalminers would have come out of it wonderfully well. Tho member for Parnell, Mr, W. P. Endean,. had said he could find a company which would give us a shilling a ton royalty." Mr. Endean: You got an offer last Friday fortnight. Mr. Veitch: I am not aware of it. Mr. Endean: Ask tho Minister of Mines. Mr. Veitch: I am not under crossexamination. Will the hon. member tell us the name of Ibe company? Mr. Endean: Did the Government not an offer for the supply of coal at the same price as Glen Afton and with the payment of a royalty of sixpence ? Mr. Witch: What was tho name of tho company ? Mr. Endean: YOll had the offer. Mr. Speaker called for order and tho argument wis abandoned. In concluding Mr. Veitrh said the contract. will) Glen Afton had had the effect of breaking the prices sought bv tho combination in tho Waikato, and it. was quite probable that the whole of the Auckland Province would benefit as a result.

DEFINITION OF POLICY. REQUEST BY MR. COATE3. CLEARER STATEMENT WANTED. ; DY TrXEORAPII.—-SJ'ITIAt, lIEPOTITEH. j WELLIN(JTON, Wrdncfuluv. The subject, was again raised on the Imprest Supply Bill debate in tho evening, when the Leader of tho Opposition, the lit. Hon .J. (1 Coates, asked for a definition of iho Government's policy on questions of the kind. The House was entitled to a clearer statement from the Minister, said Mr. Contes. Had tenders been called, it appeared to be quite obvious that better loyalty terms would have been obtained and that the Power Board would have re reived exactly the same lender price. Replying after midnight, the Minister of Railways, the Hon. \V. A. Vcitch, claimed that the leasing of the mine was ono of the finest strokes of business ever clone by any Government. The Minister was subjected to severe heckling from the Labour benches, and, addressing Mr. 11. McKeen (Labour— Wellington South) he said: " ['lease do not interrupt mo. lam defending my honour against an accusation of falsehood." He said that tenders were not called because Glen Afton was tho only mine outside the ring of the U'aikato collieries.