WAIUTA NOTES

Grey River Argus, 4 September 1948, Page 2

WAIUTA NOTES

[Our own Correspondent] Mr Maurice Frawley, of- Christchurch, is visiting the township. Mr and Mrs W. Maher have returned from a visit to Rapahoe. . Mrs Morel, of Westport, is visiting her parents, Mr and. Mrs W. Larcombe. . , , Misses P. and B. Hocking, of Christchurch, have been visiting their sister, Mrs W. Moriarty. TT . Mr R. Baron, of Canterbury University College, is visiting his father, Mr J. Baran. . . , Mrs J. Purcell has. left on a visit to Christchurch. . Mrs Stan Purton, of Christchurch, is visiting her father, Mr McTaggart. Messrs J. Baran, N. Dobbin and W. Moriarty visited Hokitika last Saturday. , „ K. Breslin, the Waiuta footballer, played for West Coast against a Southland team last Saturday at Hokitika. , „ x liie Batchelors’ ball held last Saturday evening, drew a record number of visitors from all parts of the West Coast. The winner of the lucky seat was Mrs J. Rodden, of Greymouth. Other competition winners were, Miss A. Jones, and Mr and Mrs G. Williams, of Ikamatua. The London directors of the company, the Blackwater Mines, Ltd., have cabled shareholders as follows: “The seriousness of the situation which confronts the gold mining industry within New Zealand has been brought before the Government and we earnestly hope that some form of. assistance will quickly be forthcoming and thus avert the danger of cessation of operations which now threatens us. Since the company’s accounts for the year 1947 were circulated, the decision of the New Zealand Government to bring the New Zealand pound to parity with sterling has been announced. Unless some amelioration is provided by the Government this can only have a profoundly adverse effect upon the company, and shareholders will doubtless wish to hear the views of the board on this vital issue. The grave consequences can best be appreciated by seeing what effect parity of exchange would have had on the result of the year 1947 had it operated throughout that year. Expenditure in New Zealand was approximately £N.Z.95,000, which converted at the rate of exchange ruling for the past 15 years (viz. £N.Z.125 equals English £100) becomes English £76,000, a difference of £19,000. Had the exchange rate been at parity throughout 1947 the loss shown in the accounts would have been increased by this £19,000, which is the measure of the additional loss that would have resulted. You will appreciate that if it is definitely established that future operations of the mine will incur losses of this magnitude the suspension of operations must be considered as a matter of urgency. Your directors are of the opinion that the remedy is for the Government to create conditions in which the mine can operate efficiently and to capacity. They submit therefore that the company should be helped and encouraged by every possible means to obtain capacity working in a minimum of time. The first essential appears to be for the Government to provide a subsidy or other financial assistance which will permit of the mine being operated without loss. Given sufficient labour the mine is capable of producing and the plant of treating up to 5000 tons of ore monthly. Overhead expenses would not be seriously increased but efficiency at every stage would be enhanced. In the past our annual production of gold has frequently exceeded 20,000 ounces. We believe that an annual output worth £200.000 sterling is practicable and. would constitute an important contribution to the economic welfare of New Zealand and the whole sterling area. The great bulk of this sum would flow back into New Zealand economy as wages.”