MINISTER CRITICISED

Sun (Auckland), Volume IV, Issue 1040, 2 August 1930, Page 10

MINISTER CRITICISED

MACDONALD MINE LEASE “STATEMENTS ARE INCORRECT” Mr. G. Pollock, secretary to the Pukemiro Collieries, Ltd., describes in a letter to The Sun the statements made by the Hon. W. A. Veitch in connection with the leasing of the MacDonald Mine as extraordinary He indicates that instead of the Min ister protecting the Power Board, that body w-ill now have to pay a higher price than it otherwise would have done, and this, according to Mr. Pollock is the result of undue haste and working in the dark. The letter reads: During the debate in the House of Representatives, relative to the leasing of the MacDonald Mine to Glen Afton Collieries, Ltd., the Hon. W. A. Veitch made some remarkable and extraordinary statements when endeavouring to justify the action of the Government in this connection. He states that the associated coalmine owners in the Waikato wanted to charge 17s 6d a ton for run of mine coal and 10s a ton for slack. As stated by me in a previous letter, this statement is entirely incorrect as far as run of mine coal Is concerned, and I will again repeat that my company was not, at any time, asked by the Government or the Auckland Electric-Power Board to tender for coal supplies. Mr. Holdsworth and Mr. Bartley attended a meeting of Waikato Car bonisation. Ltd., when they were distinctly told that they would have to approach the individual companies to obtain prices for other grades of coal than slack Re Slack Coal. —Knowing that Arapuni would come into operation sooner or later, the Waikato companies hitherto supplying slack coal to the Auckland Electric-Power Board realised that some other avenue must be found for the disposal of slack coal used in that direction. It was then that a company was formed known as Waikato Carbonisation, Limited. That company is erecting a carbonising plant at a cost of £150,000, and has entered into a contract with several of the Waikato companies for the whole of their slack only. Evidently this is the alleged combine that Mr. Veitch refers to. "PROVINCE WOULD BENEFIT” Mr. Veitch goes on to say that the contract had had the effect of bringing down combination coal prices in th»Auckland Province, and that it was quite possible that the whole of the province would benefit as a result. Mr. Veitch is rather belated in his prophecy as my company intimated a reduction in the prices of coal on July 1. which was some time before the secret of leasing of the_ mine was made public, and for Mr. Veitch’s information and all others concerned, that reduction brought down the price of through coal below that which the Power Board has contracted to pay Glen Afton Collieries, Ltd. It will therefore be seen that instead of Mr. Veitch protecting the Power Board that body has now to pay a higher price than it would otherwise have done, which is the result of undu.» ! haste and working in the dark. In the course of the debate. Mr Fletcher interjected that Glen Afton Collieries dodged income-tax. The ' Minister replied that it was no use raising side issues. From that rejoinder one would infer that the Minister is under the impression that the financial state of the ; country is in such a prosperous condi- ; tion that a revenue of income-tax o.' approximately £12.000 per annum is of no consequence. In conclusion I might state that up ; to and until my company made tr*e 1 reduction referred to. all the coal mine companies in the Waikato, including Glen Afton Collieries, Ltd., charged , the same prices for coal. G. POLLOCK.