ONEKAKA STEEL

Otago Daily Times, Issue 25279, 16 July 1943, Page 2

ONEKAKA STEEL

FORFEITURE OF PRIVILEGES CASE BEFORE APPEAL COURT (P.A.) WELLINGTON, July 15. The Court of Appeal to-day commenced the hearing of an appeal by the inspector of mines at Reefton against the Onekaka Iron and Steel Company, Ltd. (in liquidation), the Golden Bay Proprietary Company, Ltd., and Pacific Steel, Ltd. The appeal is from the judgment of the Chief Justice, Sir Michael Myers, dismissing an appeal from the Warden’s Court brought pursuant to the Iron and Steel Industry Act, 1937. The Act was passed to nationalise the iron and steel industry in New Zealand, and declared all mining privileges held by the Onekaka Company revoked. The Act further provided, for the purpose-of determining whether compensation should be allowed, that inquiry should be made by the Warden’s Court whether under the legislation existing before the Act was passed the company’s privileges or any of them were in any event liable to forfeiture and would, m fact, have been forfeited but for the Act. The grounds bn which it was contended that the Crown was entitled to forfeiture were that the lands and licences of the company had been unused for a proper purpose and neglected for nearly three years, that the labour conditions had not been complied with, and that the privileges had been abandoned. • The Warden’s Court, after a lengthy hearing, determined that the privileges were liable to forfeiture, but would not, in fact, have been forfeited if before the Act was passed proceedings had been taken by the appropriate officer under the Mining Act, 1926. The appeal by the Crown against the decision was heard by Sir Michael Myers and dismissed, and the_ present appeal is from the latter decision. The question for the determination of the court is whether the privileges were liable to forfeiture and would have been forfeited, and, in effect, the decision of the court will determine whether the respondents have the right to ’have their claims determined by a compensation court. On the Bench are Mr Justice Blair, Mr Justice Kennedy, and Mr Justice Callan.