GOLDMINING CONDITIONS

New Zealand Herald, Volume LXX, Issue 21554, 27 July 1933, Page 8

GOLDMINING CONDITIONS

The steps that are being taken to prevent the investing public being exploited by the promoters of goldmining ventures are to be heartily supported. The Minister of Mines made a statement on the subject at Dunedin, announcing that until assurances of the, prospect of a reasonable return on capital invested were given, the granting of licences for areas on Cromwell Flat would be held up. Welcomo co-operation has been forthcoming from the Dunedin Stock Exchange. "Wild cat" flotations in the past did much to destroy mining enterprise and undermine the confidence of the public. The department is carrying out a duty it owes to the public in examining the bona tides of all mining propositions for which capital is sought. Further, there is wisdom in the conditions for the preservation of the surface of the ground. Many acres of choice alluvial soil were destroyed in the past, and only mounds of boulders remain. But it is difficult to understand the royalty conditions which the Minister is insisting upon. Applicants for licences are being required to give an undertaking to pay 5 per cent of all the gold won to the (iovernrnerit. It is not unreasonable to claim a percentage of the gold secured l>y relief workers as a return, for the aid given, but quite another to impose a tax in advance. Already gold must pay a duty of twelve shillings and sixpence an ounce, and there is no justification for so heavy a royalty. "While keeping a firm check on exploitation the Government should encourage the development of the industry. At

the present time funds are available in London for raining that offers some promise, but brokers will certainly divert their attention to other lands when they find that 5 per cent of gold won must be handed to the Government of New Zeahand, no matter what the costs may be. The Government should bo well satisfied with tho existing taxation. If largescale operations were started by oversea interests money would be brought into the country, employment would be created, trade would be stimulated, the customs revenue would benefit by the importation of equipment and success would be a general boon. Without the Rimu dredge Hokitika would be in a very bad plight. The royalty conditions should bo waived.