STATE MINE OPERATIONS

Taranaki Daily News, 5 November 1932, Page 7

STATE MINE OPERATIONS

MINISTER DENIES STATEMENT

*NO DOSSES TO BE MADE GOOD."

By Telegraph.—Press Association.

Wellington, Last Night. Denial of a statement made by Colonel Holgate, president of the' New Zealand! Coal Mine Owners' Association, was made by the Minister of Mines, the Hon. C. E. Macmillan, to-day. Colonel Holgate was alleged to have said it was doubtful whether throughout the entire period of their operation the State mines had been reasonably successful from a commercial point of view and that they were highly competitive, and ’as> losses aUd deficiencies had to be made up by the State competition with privately-owned concerns was unequal. \ '' . . " The Minister said the published account® of th'e State Coal Mines-lor the year 1931-32 revealed for the year ended on March 31, after allowing for interest on Capital and depreciation, th© Liverpool colliery and th'e James colliery made profita of £l7®9 and £2027 respectively, and the profit on the whole business for the year was £lO,032, of which £76'85 was paid to the sinking fund account for th© redemption of loan capital. Since, the in? cep'tion of the 'State coal mines in 1903 the net profits made by the whole undertaking to M'arch 31, 1932, had be© ll £14'5,293, and this after providing for interest and depreciation, of which £79,704 had been paid into the sinking fund account which, with interest thereon, had been used to redeem loans raised by the Government for the State mines purposes. The general reserve at March 31, 1032, was £134,157, so it .would bo seen -there had been no losses to be made good by- t'ho -State, and th® chance of the State having to do ®o Were very remote.