ONAKAKA IRON

Hokitika Guardian, 13 May 1931, Page 8

ONAKAKA IRON

MEN’S PROSPECTS. A MEASURE OF RELIEF. In consequence of the changed attitude of the union, Mr J. A. Heskett,.., late works manager for the Onakaka Iron and Steel Co., Ltd. (in liquidation), will now be able to carry on with his contract for the manufacture at the works of pipes for the Wellington Gas Company and within the next few days about thirty-five men will be started on work which will last for five or six months (reports# the “Golden Bay Times”). Scrap iron and the remainder of the iron in stock when the company went into liquidation will be used. Mr Heskett considers it likely that other contracts will follow the present one and is confident that when the current restricted trade conditions pass the whole works will be once more in full operation. When Mr H.esket first brought forward his scheme he was held up through the attitude of tne un-mi, which passed a resolution refusing to work for him or the company until arrears of wages amounting to some C i ,00 were paid. Now they Tiave agreed to assist the receivers to realise on the assets ot the company, and in consequence have rescinded their previous resolution.

The benefits of tint carrying out or Air Hcskett’s contract will he tlncefold —a number of local men. will be given work, the carrying out ol further contracts with Similar beneficial results will lie encouraged, and tne work in Wellington of laying the pipes to he made at Onakaka will engage about 200 of the unemployed.

The first task to be carried out is the re-erection of a furnace for re-met ing the iron and when it is in operation the making of the pipes wifi begin. The contract is for a line of 24in. pipes for a big gas main in W'ellington and the amoun involved is approximately IMO,OOO. Air , l lt,‘skett will, of course, purchase the iron Drum the company. He stated that there was at present sufficient iron at the works to supply the pipe and iron market lor six months.

“Some people seem to think that Onakaka is finished,” said Air Heskett

“but I don’t believe that for a moment. When the present depression lifts and the markets for pig iron comes hack to normal the works will oneo more he a sound business proposition. No doubt they will be taken over as a going concern and put into full operation again. Not only do 1 say that the work are likely] to reopen; T say they will reopen.” The closing down of the company has meant considerable financial los* to Mr Heskett ,but he is a confident of the ultimate success of the venture as he was when lie set about ihmiuo. ing the original company . The ' freely expressed, opinion that there is a very little likelihood of the arrears of wages due to the men who worked at Onakaka being paid has been contradicted from an authoritative quarter. It is understood that the two subcontracts now ,being carried on at the works will do much to relieve tlie position,’. a..d it is further stated that the receivers for the company in liquidation have power to pay out to the employees all money as thev receive them