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Hokitika Guardian, 3 October 1927, Page 2

Theuf. is much concern locally about the possible effect of the. largely increased customs’ duty on gold;dredging

machinery. The jump from ten to twenty per cent, for British imports, and from fifteen to forty per cent, lor foreign imports, suggests absolute prohibition. The Government is supposed to he in favor of encouraging industries, as surely it must he if it takes cognisance of the range of unemployment stalking the land. A’et by this act of imposition it at once jeopardises an avenue for employment and seeks to check production. It is a well-known fact that machinery in the place of checking employment, invariably increases it. Machinery brings about an economic condition which by producingfacifities for greater output, creates a more favourable balance, and thereby opens up the way for more employ-' incut. As regards dredging operations generally, those familiar with the goldfields know it is a precarious industry from material circumstances. Gold is not to ho found everywhere. Tt has to he sought for and located, and when located the value of the deposit has to lie tested as to its extent and facilities for working economically. All this preliminary investigation involves labour, more or less expensive, because it has to he expert and certainly reliable in character. The next step is the provision of effective machinery to work the ground. To operate successfully the nature of the field has to ho understood and often anticipated. Power is the first essential, and that calls for strength in the machinery, adding necessarily to the cost. Anyone who has paid even a cursory visit to an operating dredge will understand the strain placed upon every part of the outfit when working heavy tight ground at any depth, and can understand that there must be reserve power and strength to meet the demands placed upon the plant. All this creates cost in construction, and a dearer plant means a proportionately higher duty to he paid in any ease. ’1 he rate of duty levied is therefore a special factor to he considered before launching on any dredging enterprise. On that account it can ho realised that the jump proposed in duty rates is of serious concern, for in the case of Westland where low grade ground has to lie considered primarily ine cost wid m unit up tremendous'y, and there can he in possible increase in the returns for the extra outlay. The Government action is therefore to stiile the industry and block an important industry fo AA’estland which will have serious consequences to he felt by every business man in the neighbourhood'. It is well therefore that the local protest should be long and loud.