GOLD DUTY.

Hauraki Plains Gazette, Volume XXXVII, Issue 4984, 7 June 1926, Page 3

GOLD DUTY.

difficulties of waihi. deputation to prime minister. During the recent visit the Prime Minister (Hon. J. G. Coates) to Paproa, a deputation from the Waihi Borough Council consisting of the Mayor (Mr W. M. Wallnutt) and town clerk (Mr J. J. Ritchie) presented petition seeking financial, assistance for municipal undertakings. In presenting the petition Mr Wallnutt asked that the Waihou and Ohinemuri Rivers Improvement Scheme should be treated as a nation- ■ i’ : l undertaking. The deputation pointed put .that some three years aga the / late Rt. Hon. W. F. Massey, as Prime Minister, and Mr Coates, as Minister of Public Works, had promised that legislation dealing with the matter would be brought down at the following session of Parliament. Since then two sessions had passed, and nothing further ha.d been heard of the promised legislation. . The expenditure bn the river works was daily mounting up, and ht(d now reached a figure approaching £500,000, and competent authorities had estimated that before the improvement works were completed the cost would not be (far off the amount of £700,000. The interest

and sinking fund on that huge loan must be paid, but so fair the only "contributors thereto had been the Government, the mining companies, and the gold duty. Even if an attempt was made at .that, late hour tb load the charges on. the adjoining land it was estimated that the load would be greater than the land could bear. As the work had developed into what might fairly be termed a national undertaking, it was confidently suggested that the only reasonable solution was by treating it as such ■ and taking diver ,the whole of the ’works as a Government jvork, and all revenue to be credited to such work. In connection with, the revenue the deputation pointed out that the Ngahina wharf, which had been built a> a part of the sche/ne, had been handed over to the Paeroa Borough Council, which body now enjbjyed a substantial profit therefrom. It was contended that any profit arising from any part of the works should be used' as a set-off to the loa,n charges, and not be lost to the scheme, asi at present.

Mr Wallnutt pointed out that the council had asked previously that until the scheme was dealt with by legislation no deductions should be made from the gold duty, and that- the amount of £1026 which had been deducted during the, past financial year should be remitted to the council’s account. The Waihi Borough Council had to keep up many miles of roads in the borough for non-producing gold mines and goldmining claims which nothing in gold duty. At the ' -time the first commission sat the gold revenue, accruing to the Waihi pl Borough was about £20',000. It was now £6OOO, but prior ,t 01923 it had been less. The borough was-now fa.ced with interest and sinking fund on three loans, and this year, as sole contributory local authority, it had to pay hospital levies of £2500 ; and, in rface of that, the. Health Department was now asking the council to put in a sewerage scheme costings, nothing up to £20,000. The rates for roading .purposes were very high, and in order to keep faith with the Government and promptly repay loans outstanding the council required the gold duty, which, it was submitted, was the equivalent of a rate on the mining properties.

' PRIME MINISTER'S REPLY. In reply to the deputation the Prime Minister pointed out that the Public Works Department had de- _ {strayed the .approach to the old wharf l *at the Puke, Paeroa,, and the Ngajiina wharf had been handed over in lieu thereof. He did not believe the Ngahina wharf was a very remunerative undertaking to the Paeroa Borough £ Council. In reply to Mr Coates the Mayor of Paeroa (Mr W. Marshall) said that the gross profit to the borough for one year was only £l2o'. Mr Coates remarked that he did not think it would amount to much. The Government had recognised the difficulties that the Waihi Borough Council had to finance • its various undertakings, but he contended that the Government had .treated the borough generously in, the ptifSt. Admittedly a mistake had been made in the first place when the- 'rivers improvement scheme had been undertaken. The land should have been resumed aiik at the commencement. Had that been i done, unnecessary speculatlojn in land values would have been avoided. At the same time it was .the duty of every settler to recognise that the land would not have been worth a snap of the fingers without the carrying out and completion of the scheme. The’ Prime Minister said that he was not prepared to talk legislation In connection with the schema at the present time. Mr A. M. Samuel, M.P., pointed out z* that gold duty had been allowed W Waihi for a specific purpose, and contended that the Government had taken it.aWay for another purpose. The Prime Minister said that he was familiar with the circumstances, and would give an assurance that the matter would receive his personal, oh his return to Wellington, and he would advise the deputation what assistance would be forthcoming-