CLOSING OF IRON WORKS

Hokitika Guardian, 13 April 1931, Page 5

CLOSING OF IRON WORKS

REPLY BY MINISTER, ASSISTANCE RENDERED BY GOVERNMENT WELLINGTON, April 10. A reply was made by the Minister of Mines to a statement issued by the chairman of the Onakaka Iron and Steel Company as to the causes of the failure of the works. “The statement issued by Mr John I.eggo,” said Mr Murdoch, “insofar as it refers to the assistance afforded to the company by the Government is not only unfair, but misleading, as the following facts will show: Since operations were commenced, the Government lias paid to the company by way of bounty in respect of pig iron produced, no less than £36,291 14s 4d. In addition the Government lent to the company £14,000 last year to enable operations to be continued, land, further, the Mines Department sold to the company at bed-rock price large quantities of State coal for which the company is indebted to the Department for a considerable sum of money. “Had it not been for the assistance granted by the Government the company would have been compelled to close down their works on several occasions in the past. It is quite trite that shortly before the company decided to go into liquidation, further appeals were jnade to the Government for uddi tiomil limineiiil assistance, the whole position was then closely investigated by the Government and the conclusion arrived at was that, even if such as* sistance were granted, it would be impossible for the company to continue operations suceessfull.v. ’’ Mr Murdoch said that no one regretted more than the Government that the industry had stopped and it was a great pity indeed that Mr Loggo, when he made his statement to the Press, did not. as lie should have done in fairness to the Government, state the large measure of financial assistance given by the Government to the company since it commenced opernt-