HYDRO-ELECTRIC WORKS.

Waikato Times, Volume 117, Issue 19597, 8 June 1935, Page 7

HYDRO-ELECTRIC WORKS.

PURCHASE OF HORAHORA. ATTITUDE OF GOVERNMENT. WELLINGTON, Friday. When questioned concerning the Walhi Gold Mining Company’s reply to his recent statement relating to the place of payment (New Zealand or London) of the purchase money for ■Horahora hydro-electric works, the acting-Minlster of Finance, Mr Hamilton, said he was unable to agree with the position as stated by the company’s local director and attorney. Mr Hamilton said that in August, 1931, the company was formally advised that, failing extension of the agreement on a mutually satisfactory basis, the Government would arrange to pay in New Zealand on the duo date.

Various points cropped up In regard to 'the then proposed extension and it would appear, said the Minister, that the completion of the final arrangement was delayed until the company was fully aware of the effect of then Impending legislation as affecting interest rates and taxation. In other words, the company sought a method •of settlement most advantageous to ■the company, having regard to the possibility of establishing) its claim for ultimate payment in London, which claim was, of course, not admitted at any time by the Government.

Mr Hamilton stated that 'he could not understand the attitude of the company in regard to the 1931 negolatlons, in that when payment became due on November 1, 1934, the company then sought an extension of tho agreement for a further period at a considerably reduced interest rate. This attitude, he suggested, did not lit In with the protestations of the company In regard to the earlier negotiations and clearly indicated that the extension arranged in 1931 was at least advantageous, if not profitable, to the company.

Tho Ilorahora hydro-electric plant was purchased from the Waihi Gold Mining Company Limited, in 1919 for £212,500, payment being made in November, 1934 In New Zealand currency. The recent controversy has been over the company’s contention that the purchase price should have been paid in sterling.