“GOOD BARGAIN”

Otago Daily Times, Issue 27091, 27 May 1949, Page 6

“GOOD BARGAIN”

PURCHASE OF WESTPORT COAL COMPANY

STATEMENT BY MINISTER

PA WELLINGTON, May 26. The Labour Party conference referred to its national executive for representation to the Government a proposal that the price paid by the State for the assets of any commercial undertaking be the commercial value of those assets at the time at which the decision is made to acquire them. The official report of the conference stated that the Minister of Mines, Mr McLagan, explained that £900,000 was the price paid by the State for the Westport Coal Company’s assets. These assets included cash and investments totalling over £480,000, and other assets shown on the books at a cash value of £533.000. Taking into account the value of the company’s other properties, including mines not being worki d, he considered the Government got a good bargain, said Mr McLagan. The company was not prepared to undertake the work involved in opening the mines not being worked, and decided to sell to the Government. The investments the Government had acquired with this deal were shares in the Union Steam Ship Company, Ltd., the New Zealand Refrigerating Company, Ltd., and the Southland Frozen Meat Company, and debentures .of the Timaru Harbour Board and City of Hamilton.