ONEKAKA CO.'S FAILURE

Poverty Bay Herald, Volume LV, Issue 17439, 10 April 1931, Page 8

ONEKAKA CO.'S FAILURE

GOVERNMENT’S ATTITUDE

STATEMENT BY MINISTER

(Per Press Assooiafion.) WELLINGTON, this day

A reply has boon made by the Minister of Mines, the Hon. A. J. Murdoch, to u statement issued by the chairman of the OnOkaka Iron and Steel (do. as to the causes of the failure of ilie works. “Tlie statement issued by Mr. Leggo, ’’ said Mr. Murdoch, “insofar as it refers to the assistance afforded to the company by the Government, is not only unfair, but jAisleading, as the following facts will show: Since operations were commenced the Government Inis paid to the company by way of bounty in respect, of pig iron produced no less titan £ii(i,2lH 1 -Is 4d. In addition, tho Government, lent to the company £14,0(10 last year to enable operations to lie continued, and, further, tho Mines Department sold to the company at bedrock price large quantities of .State coal for which the company is .indebted to the department for .a considerable sum of money. Had it not been lor the assistance granted by the Government, the company would have been compelled to close down its works on several occasions in the past. “It is quite true that shortly before Ihe compary decided to go into liquidation furl her appeals were made to th(> Government for additional fin - uncial assistance. The whole position was then closely investigated by the Government, and the conclusion arriv-’ ed at was that even if such assistance were granted it would lie impossible for the company to continue operations successfully. “ Mr. Murdoch said that no one regretted more than the Government did that the industry had stopped, and it was a great pity indeed that Mr. lfaggo when he made his statement to the press did not, as he should have done in fairness lo the Government, state the large measure of financial assistance given by the Government to llu 1 company since it commenced operations.