GOLD EXPORT TAX

New Zealand Herald, Volume LXXIV, Issue 22901, 2 December 1937, Page 15

GOLD EXPORT TAX

PLEA FOB BEMISSION GREAT BURDEN ON INDUSTRY EFFECT ON ENGLISH COMPANIES [BY TELEGRAPH—SPECIAL REPORTER] WELLINGTON, Wednesday A plea for the remission of the gold export duty was made by Mr. W. A. Bodkin, (Opposition—Central Otngo) during the debate on the Mining Amendment Bill in the House of Representatives to-day.

There is 110 doubt that tho export duty of 12s 6d an ounce is imposing a great burden on the gold mining industry," Mr. Bodkin said. " Last year tho proceeds of the duty totalled £108,793 and it is a fact that there are cases where companies which win most of the gold in New Zealand have been compelled to pay many thousands of pounds in this way, notwithstanding the fact that no dividend has been paid." Mr. Bodkin said he wished to make an appeal on behalf of tlioso English companies which had large sums invested in the gold mining industry in New Zealand. No industry in the world employed more labour in proportion than did gold mining, and there was none that caused more employment in other industries. In those circumstances it seemed a great pity to do anything that would discourage overseas capital from coming to the Dominion. "It is true that the New Zcalander or the New Zealand company gets over £8 an ounco for gold after the duty has been deducted," Mr. Bodkin added, " but an English company gets only about £6 7s 6d,. and as practically the whole of its money is remitted Home it does not get any benefit from tho exchange." Mr. Bodkin referred to tho position of small alluvial miners, many of whom, lie said, were not able to have their gold assayed in New Zealand. He knew of one case where three miners between them had won 25 ounces of gold and actually paid duty 011 that amount. When the gold was assayed abroad, however, it amounted to only 17 ounces with the impurities removed and the men were paid for 17 ounces, although they had paid export duty on 25 ounces.

THE WINNING OF GOLD "ABSURDITY OF INDUSTRY" MR. J. THORN'S ATTITUDE [BY TELEGHAPIF —SPECIAL REPORTER] WELLINGTON. Wednesday "Whenever I visit gold mines, and I visit many in the course of a year, I am struck by the utter absurdity of the whole industry," said Mr. J. Thorn (Government —Thames) during the debate on the Mining Amendment Bill in the House of Representatives to-day. A large proportion of the quartz miners in New Zealand, he remarked, were employed in his own electorate and he had a fair knowledge of the difficulties with which they had to contend.

"I have visited these mines," said Mr. Thorn, "and I have seen men working underground amid smoke and dust to win a metal which, immediately it is won, is put underground again in the vaults of banks. It is won underground and then stored underground. One is struck with tbe absurdity of the position. But when one contrasts what the miner gets out of the industry with what the shareholder gets it becomes even more than absurd."

HELPING UNEMPLOYED WORK BEFORE CHRISTMAS QUESTION IN THE HOUSE [by telegraph—special reporter] WELLINGTON, Wednesday The efforts of State Placement officials throughout the Dominion to secure work for sustenance men before Christmas is purely an unofficial effort, according to a statement made by the Minister of Labour, the Hon. H. T. Armstrong, in answer to an urgent question by Mr. H. S. S. Kyle (Opposition —Riccarton) in the House of Representatives to-day. Mr. Kvle referred to a Christchurch newspaper report of an appeal to citizens to find work for these men between now and Christmas and asked if the appeal had the approval of the Labour Department. The Minister said the idea of requesting the co-operation of private citizens originated at Auckland with the Placement Office there as a purely local and unofficial.effort. It spread to other parts of the Dominion through the collaboration which existed between the offices. The scheme had not been before the Government and had not, of course, been approved. The Minister .said he had decided, when these unofficial steps came, to his notice, that the placement officers should not include the results in their returns of placements and that any odd days of work obtained by sustenance men under the arrangement would be ignored in assessing private earnings for the week concerned. "The official measures on behalf of the unemployed at Christmas are substantial," continued the Minister. "They include the provision of payment by the Government of the full wages cost, not of one day's work, but of at least four months' full-time work at standard rates of pay lor all married men fit to take work. This money is available and local bodies have for some time been urged to take it up and provide the jobs. Good progress has been made .with this scheme."