GOLD EXPORT DUTY

Hokitika Guardian, 30 May 1933, Page 5

GOLD EXPORT DUTY

■ CLAIM ON FUNKS 'MINISTER EXPLAINS POSITION'. (Per Press Association Copyright.). . ’ CHRISTOHURCH, 'May 29. ' The statement' that it couid-, not be expected that the (wlihl.o of the ,£140 ; - 000, which it ,; i» estiiriated : will be •' 'received by th,<* .xjpuSqli.da.tad. Fhndi •' rrom tile export duty •,of. 12s; del an ounce on gold, jqan ,reasonably;be claimed by .the Mines yD.epairiment foi min- . ing development ;w4s* made , .by' tile • Hon. C. hi. Macmillan, Minister ■> of • Mines,, in an interview yesterday. “I want to further, the interests of mining undertakings to the greatest extent that financial circumstances will allow me in my department; ?' Mr 3lacmillan said. “The export duty: of 12s . 6d ah ounce on gold means that I can approach th© Minister-for 1 ; Finance, in order to get some funds with' ; which. to; nrdvide;-access reads and tracks and also l give support to approved ventures. I would claim the whole of the -Money collected.' hy ihe duty but for the fact that the -industry. 1 has the benefit 0f.,/..the. 15 per cent;' rise :in the exchange rate.-;' . /v.o >• ;• . ■ '/.yV : '“The net result is'-that oh an output of gold equivalent'-to that of last;.year the effect of a'iij pst cent.,' exchange . •increase land' '.vde- .>'•;• - duotibn of. theVdutjf.pf .12s; Sd hn ounce - was to : ,leave-the mining.industry h with a bonus of £39,806 4-equ ivalent to. 3s c 7.9 d ?ap- ounce,‘ Mr? Micmillah. ' •added, / “(that; is’.basirigl thecalcula- : tions on th& figpres -for last year’; iThe figure show quite clearly:: that - com- '... plaints -against? the ’duty, must come . .only from these who;v;are. iiot.‘.fully.’ cognisant of the .facts:” ’ : , Explaining - the; • advantage.., he • • • claimed that • gold mining -was receiving Mr Macmillan said; that ;-the value of gold exported during 193132 was: £1,171,873. The pric© of ‘fine. gold had, appreciated from £4 ; ss;. to more.;thaif;£6'"ah .ounce,' arid-gold Vgal-j c one/pxporfed product of . the Dohiiniph thati had/xeturhed ah a-ufiit •tq.^h^^x'j^rter,' ciple - ,Jsft>eyiheht. exchange. increase'was to r , assist; - •expertcomiriodiims. 'fk’at' Rafjr 3 - dechned'iQ; valuA-ar tipit-’ sinbh;' 19SfH ‘ - • ' I '-j'lJy.iflnaliing the 4jrdHdgifl«i U 'id, to all expprts automatically the eom- ; value .|A ’'jlb|r to the same? exttjnt hui, an even greater extent*. - ’A's r,llk<strafciem .WAS •1933 that produce Whs Wpfth; £6f : .'hud- - ;;v- v •with 4he increase £66.. The difference between 1929 nnd 1933- to the;pr^r#S^oS«’'&f v value of sfilOO in 1929 wnf •wS.pWO withi|ie. - rl» •n#|f'lW9 of £72 10s. Owing to in the. .value, a unit of . primaify produce. the. assistance by way of -exchange wasi/nirie:' 1 ': owihg -to tlie increase in the value a uhitjoft igold the assistance of’ exchange was $.5 points. ~ ; At-i least the^lS/pex 1 cenfi’adaitiofial due'to; the exchange sliould be recovered to leave the relative positions of gold and the Consolidated Fund.',in status qpo. .- Further,- however, .' ;as ii-okl mining absorbs; -a fair amount of labour it would not be politic under present circumstances fo add to the ; revenue tax. ' ', ; • •; 1 . , Explaining the calculation .of - the bonus received by gold" producers .at: . £39,806 Mr' Macmillan said that;.:..lt; was made on last, year’s figures. -:The value of gold, exported was £1,171;873, . the 15 per cent, exchange. increase on that representing £175,780. Gn the total of 217,550 ounces prodiicedithe export duty would amount to. £135,974, and ihe subtraction showed an advantage to the industry of £39.806.