LOAN ON A SCOW.

Hokitika Guardian, 1 August 1922, Page 1

LOAN ON A SCOW.

LABOUR DEPARTMENT’S

VENTURE,

WELLINGTON, July 27;

Recent criticism of the Labour Department- by the member of Wanganui for lending £3,500 on the auxiliary bcow Coronation was the subject of a statement by the Minister of Labour today. He referred to the difficulty which faced the Department’s housing branch in securing material or transport for it during the height of the demand for houses. Tt was brought to their notice that a large quantity of timber lay at Golden Bay, Nelson, but there was no shipping. available to transport it. A company was formed to purchase the scow Coronation, which was suitable for working this harbour. The owners and the Westhnven Timber Company, which comprised the same people, made a proposal to the Department for a loan of £3500 towards the purchase and commissioning of the vessel, the security being a first mortgage over the vessel, and undertaking to insure it for £3500. Further consideration was tho company’s undertaking to supply 70 per cent of its timber output to the Department, and also hand over at a price fixed by the Board of Trade 140,000 feet of fully seasoned timber then lying at Westhaven. Official reports showed the vessel to be in first-class condition at the time, and worth £SOOO. When the period of the loan expired in September last the Government called up the money, hut the company was not in a position to depav. The Oovernjment foreclosed. The vessel was taken over at AYhnkatane and on the run south met with heavy weather, with the result that the mass wore strained, and leaks developed above the water line. She was rcpaired. Lroupdit to TVelingrton, and sul»mited for sale by auction, hut did not bring the reserve. The Afinistor declared that any unbiassed critic who realised the conditions at the time tho advance was made would admit that the Government did the right thing under ihe circtimsances.