GOLD MINING IN N.Z. HIT BY ALTERATION KATE OF EXCHANGE

Wanganui Chronicle, 29 October 1948, Page 5

GOLD MINING IN N.Z. HIT BY ALTERATION KATE OF EXCHANGE

PARLIAMENT BLDGS., Last Night (PA).—When the Finance Bill was being debated in the House tonight, the Minister ol Finance (Mr. Nash), discussing gold production, said that it was acKn_owledged that some goldmining companies would encounter aiiiiculties now that a return to parity in exchange had reduced the price of gold in New Zealand currency irom £lO 15s 3d to £8 I2s 3d an ounce. However, he thought the majority of the companies would continue to operate profitably. The Waihi Company might be forced out earlier than otherwise, but the Government would do everything possible to expand

secondary industries and other activities in Waihi to provide employment for those displaced from the mine. One concern last month took 14 workers from the mine into other work. To Mr. F. W. Doidge (Opp., Tauranga): The Minister said there could be discussions on lhe question of granting an increase in the price o£ gold or some form of subsidy, but he did not think it was desirable to subsidise production of gold. Even thugh gold meant dollars, there were other forms of production more worthy of subsidy which could also yield dollars.

Mr. Nash said gold producers had proposed to the Government either that it subsidise them, or that they be allowed to sell ail or part of their gold wherever they liked. However, there were inferential agreements between the nations not to try to force up the price of gold, or to allow its sale on what was virtually a black market. It might be less harmful in the long run if some gold producers had to go out of business than it we did something to upset international exchanges as they now operated. We must certainly do nothing injurious to the United Kingdom and if the

price of gold became too high there might be a risk that the United States would refuse to buy more gold, with serious effects on other countries.

The Leader of the Opposiion (Mr. Holland) said the country now had the speetaele of the Labour Government, which said it was going to do every thing for the mining industry, resisting a plea to save it. In one breath it had removed the export duty and in the next deprived the industry of the exchange bene lit.

Mr. Nash, replying, said the Waihi gold mine already had a limited life of perhaps five years before it, even prior to the return to sterling parity. The exchange move in itself might hasten but was not. lhe cause of what was inevitable.

D. .1. Ross. H P. Rothbaum, and I. Whiting (all of Wellington); L. P. J. Chapman, G. A. Nicholls. E. J. Searle and T. .1. Sprott (all Auckland); R. M. Dolby (Palmerston North); F. Hurst (Christchurch). J. D. W. Monigatti and (). K. Sewell (both Ruakura), J. Murray (Dunedin).