MINISTER OF MINES

Hokitika Guardian, 4 March 1922, Page 3

MINISTER OF MINES

LOCAL DEPUTATIONS. The Hon J. Anderson, Minister of Mines, arrived from Greymouth last evening, and after dinner took deputations at Keller’s Hotel.

Mr Seddon M.P., introduced a minors’ deputation from Rimu, Goldsborough, Ca.laghaiis and Kuinara, regarding the loss suffered by the individual gold-miner through the prohibition of gold export at the time of the war period. Mr Seddon said the Minister would be fomiliar with the arguments produced before the Mines Committee, and in the discussion in the House. Referring to the alluvial miner, Mr Seddon spoke of the sympathy expressed by the Prime Minister in regard to the situation. According to evidence produced in Wellington somebody had made a. profit of a million;’ in regard to gold export when the embargo was lifted. Mr Seddon quoted how the alluvial miner had been hit during the war period. Everything went up in price on tho expenditure side, hut his gold product was stationery in value. According to a promise Mr Massey had tho matter looked into in England, but without tangible result, Mr Seddon hoped the Minister would find a solution of the mens’ difficulty. They all knew what had been done for those following farming pursuits, but nothing had been done for the gold producer and

Mr Seddon asked that a tangible scheme to recoup the gold miner might bo devised. Hon H. L. Michel M.L.C., said it would he hard to say anything new on the important matter under discussion. They know Mr Massey was sympathetic, hut largo finance was involved, and nothing had been done. Tf the miners claim was a good one, it should not he brushed aside. The minor bad suffered heavily. He was the only producer who could not pass on the increased cost in production. Gold, at the same time, was most necessary. Its production was of the highest importance, for it was the cold backing which enabled the note issue to he increased. A committee of

the House had reported in favor of the miners, and Mr Michel felt the Government. would not ignore that recommendation. Tho present depressed state of the mining industry could be traced to war conditions, the cost of gold production driving the miners to other avenues > of employment. If the gold producer j had got the appreciated price of their j commodity, there would he a. different talc to tell to-day in regard to the fortunes of the industry. The miners were a loyal class of citizens worthy of sup- . port.

Hon J. Grimmond M.L.C. endorsed all that had been said. Ho did not propose to go into the political economy of tho question, hut wanted the Minister to view the side presented by the domestic economy of the. question. The miners stuck to the production of gold as long as they could, and kept up a necessary supply. Mr A. Clifton, Rimu, said he had been mining for about 40 years. The miners were not asking for a subsidy. All they asked was for portion of the return they should have got for their geld if they had boon, allowed to sell in the open market. Somebody had made a lingo profit at the expense of the miners. Ho hoped their claims would be recognised. Mr A. O’Flalloran, Rimu, explained how serious the embargo had been to the alluvial miner. The restricted price of gold at a time when everything else went up in value, affected their broad and butter. Ground .which was workable profitably in pro war times bad to

he abandoned, and much individual loss resulted in consequence. If they could have got the full value for the gold the industry would not have declined. Messrs (j. I.inklatcr (Goldsborough >, Steele and Mavill (Callaghans), and Kurd (Kumnra) also spoke in support of the claims of the miners. The Minister in his reply said this was one of the most difficult propositions ho had been up against. He i’oeognised the position fully, and sympathised with them very greatly. Ho went on to point out that the actual increase in the value of the gold did .not take pinto till late in the war. The cause of the appreciation was owing to the exchange rates, and the absorbation of gold by the United States. When the war broke out the New Zealand Government had to do as it was told by the Imperial Government. The decree went forth that gold was not to he exported. In 1919, when the embargo on export was lifted, the producers got the parity value. That was the argument of the Imperial Government which maintained there was no claim against it. But assuming that there was a claim, where, after these years, was the money to come from to adjust it? The matter should have been brought up at a much earlier stage, so that the profiteers could have been traced. Now he could not say where they could got the money. He would like to help, but there was one initial difficulty in regard to the money. He had to he perfetly frank with them, and that was to say ho could not offer any possible solution. Even if they located the profiteer alter all these years it would he difficult to get the money back. It would have disappeared. There was no practicable way of dealing with the matter. His advisers could not find a way ; lie could not see a way out himself; in fact no on* had been able to offer any suitable way of overcoming the great difficulties presenting themselves. He regretted he could not reply more encouragingly, but thtey bad the facts to deal with, and the problem could not lie solved. After Mr Seddon had thanked the Minister for the patient hearing, the deputation withdrew, and some privaterequests were made to the Minister by personal deputations. Hon Mr Anderson and party leit for Christchurch this morning, travelling by motor car to Otira, where they will pass through the tunnel on route to Canterbury. _______