GOLD EXPORT DUTY

Otago Daily Times, Issue 23364, 2 December 1937, Page 19

GOLD EXPORT DUTY

“BURDEN ON INDUSTRY” PLEA FOR EARLY REMISSION ENGLISH COMPANIES PENALISED (From Our Parliamentary Reporter) WELLINGTON, Dec. 1. A plea for the remission of the gold export duty, especially on gold won by English companies operating in New Zealand, was made by Mr W. A. Bodkin (Opposition, Central Otago) during a debate on the Mining Amendment Bill in the House of Representatives to-day. “There is no doubt that the export duty of 12s 6d an ounce is imposing a great burden on the goldmining industry,” Mr Bodkin said. “ Last year the proceeds of the duty totalled ✓ £108,793, and it is a fact that there are cases where the 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 that he wished to make an appeal on behalf of those 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 gojd-' mining, and there was none that loused more employment in other industries. In those circumstances it seemed a great pity to do anything that would discourage overseas capita] from coming to the Dominion. “It is true that the New Zealander or a New Zealand company gets over £ 8 an ounce 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 exchange. I do urge the Minister to give consideration to the early remission of this duty.”

Mr Bodkin referred to the position of small alluvia] miners, many of whom, he 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 on 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.