ONEKAKA RIGHTS

Dominion, Volume 36, Issue 33, 3 November 1942, Page 4

ONEKAKA RIGHTS

Appeal From Warden’s' Decision

CASE IN SUPREME COURT 'The hearing began before the Chief Justice (Sir Michael Myers) in the Supreme Court, Wellington, yesterday of the appeal from the decision of the Warden’s Court in the Onekaka iron mining rights case. The hearing is expected to occupy all this week. . , The Solicitor-General, Mr. H. H. Cornish, K.C., and Mr. C. A. L. Treadwell are appearing for the inspector of mines; Mr. P. B. Cooke, K. 0., and Mr. M. O. 11. Cheek (Nelson) for the Onokaka Iron and Steel Co. (in liquidation); Mr. C. H. Weston, K.C., and Mr. F. P. Kelly (Hastings) for Golden Bay Proprietary, Ltd., and others; and Mr, W. J. Sim, K. 0.. and Mr. R. E. Tripe for Pacific Steel Ltd.

The litigation arose from the movement by the Government -to establish a State steel industry. The Golden Bay Proprietary, Ltd., is sub-lessee from Mr. T. Turnbull in respect of rights to mine minerals on a property in Nelson Province, which were in turn acquired by the Onekaka Company. The Onekaka company acquired also various other piineral licences, water rights and other rights. After the Onekgka company went into liquidation the receivers for the debenture holders gave an option to Pacific Steel Ltd. to purchase all of the Onekaka undertaking, which option was exercised shortly before the passage of the Iron and Steel Industry Act, 1937. Pacific Steel are therefore, in effect, owners of the Onekaka company’s assets, including mining privileges which the Act purported to revoke.

The warden, Mr. Maunsell, S.M., decided that though some of 'the mining privileges were liable to forfeiture they would not in fact have been forfeited, if proceedings had been taken to that end, because the Crown had failed to carry out. the terms of an agreement made in 1931 to provide the receivers with all assistance reasonably possible to dispose of the assets. In the warden’s view, the Crown’s failure to promote.a new iton and steel industry at the instance of Pacific Steel constituted a breach of the agreement. The wai’den found also that certain of the mining privileges were not liable to forfeiture. From this decision the inspector of mines has now appealed. Recent proceedings before the Full Court were to determine whether the inspector of mines could appeal. The current proceedings arc preliminary to claims for compensation in the Compensation Court. Argument for the Crown occupied the whole of yesterday.