COLLIERY LEASE

Sun (Auckland), Volume IV, Issue 1036, 29 July 1930, Page 8

COLLIERY LEASE

GOVERNMENT’S ACTION CRITICISED CONCESSION TO GLEN AFTON Strong exception to the Government's action in leasing the MacDonald coal mine to Glen Afton Collieries Ltd., is made by Mr. G. Pollock, tary of the Pukemiro Collieries, Lt<} and by Mr. J. Walker, secretary of th 4 district council of the North Islanl Miners’ Union. Mr. Pollock writes: “Tho action of the Government n leasing tho MacDonald mine to Glen Afton Collieries, Ltd., has been severely criticised in the House of Representatives, and certainly not without just cause. “Mr. Veitch, the previous Minister of Mines, is evidently responsible for tho preliminary negotiations for the disposal of the mine, such negotiation? being finalised by Mr. Murdoch without reference to the House, notwithstanding tho fact that the matter i? one of vital national importance. “When questioned on the subject the Minister stated that tho mine was leased to Glen Afton Collieries for the purpose of ensuring ample coal supplies for tho Auckland Power Board during tho cessation of operations at Arapuni. and further that the dairy producers of the Waikato, who areowners of the mine, would be assured of supplies for many years. “With regard to supplies for the Power Board, he states that that body appealed for protection, as a combination of Waikato coal mine owners was pressing for higher prices. “Mr. Murdoch also stated that hhad made inquiries as to other of supplies, but the quotations obtained w ere not considered equal to the price* at which Glen Afton would contract :f they secured the lease. “ERRONEOUS STATEMENTS” “Both these statements are entirely erroneous,” says Mr. Pollock. “In the first instance, when the Power Board resumed activities at the power station. King’s Wharf, it was charged the ruling price for slack coal which had obtained for the past two years, and at no time had the Waikato companies been asked to tender for the whole of the Power Board’s supplies-. In th© second place, the Waikato companies had not at any time been asked by the Government to submit prices. “On the face of what has been done it would appear as though the whole mater has been rushed through with undue haste, as the price accepted for crushed coal is much higher than would have been charged by the alleged combine of Waikato companies under existing conditions, but if the other companies participated in the same trade privileges as Glen Afton Collieries, Ltd., via, exemption from payment of income-tax. there is at least one company prepared to supply crushed coal at 2s a ton below that quoted as the contract price, provided the quantity required was sufficient to warrant the expense of installing crushing machinery. “Glen Afton Cohieries have to be congratulated upon being able to make such a profitable contract for themselves, at the same time it is a matter for regret that the Government should see fit, literally, to throw away money, when, at this time, it is necessary to increase the revenue as much as possible, as is evidenced by the recent Budget proposals. “Had the other companies been asked to tender, and been successful, more continuous work would have been afforded to hundreds of men who are at present averaging about four days a week, and on the other hand Glen Afton CoLieries boast of working continuously throughout the year, and that without Power Board contract. “In conclusion it might be stated for information generally that Glen Afton Collieries compete in the open market with tlie other Waikato companies to a very great extent, which must result in a huge annual profit, yet they are exempt from payment of incoro. - tax.

“The reason for this anomaly did<: be best known to the Government and themselves and if there are many other companies trading under similar conditions then there is no wonder that the income-tax payer has to suffer a 10 per cent increase.” VOICE OF MINERS Mr. Walker writes:—“l would like you to insert this, as I think it only right the public should know that there is something wrong. After reading the glowing account of how the Auckland Electric-Power Board was going to get all its needs supplied with coal of quality from Glen Afton, the following telegram was sent to Mr. H. E. Holland, Leader of the Labour Party:—‘Hope you can «se influence to combat machinations oi dairy combine supplying coal to Government subsidised power plants while other mines in locality are working four days a week. Local companies can supply coal to crush at less than 15s 6d a ton. We consider that companies competing in the open market should pay income-tax- —JWalker, secretary D.C. North Island Miners' Union.’ “I would like to point out that Glen Afton being a subsidiary of the New Zealand Co-operative Dairy Company is not paying income-tax, also that the Power Board has entered into * contract with the Glen Afton Company without calling tenders, which is contrary to the procedure of public bodies.”