35

1.—16.

M. MYERS.]

of iron necessitated by modern methods of construction. It has been estimated by very good authorities that at the present rate of iron-consumption, within fifty years the world's visible supply of ore now considered sufficiently high-grade to be employed for manufacture will be exhausted. In view of these considerations the value of the immense deposits of iron-ore at Parapara cannot be doubted, and the day does not seem far distant when this great store of mineral wealth will be utilized." Do you consider it a wise thing for this country to start to deplete and export our iron in view of the fact that in twenty or perhaps fifty years these deposits will be of enormous value?— Yes, I think so. In the first place, the establishment of the iron industry in New Zealand at the present time—especially having regard to what you have read —would be the very best tiling for New Zealand. It would help, as nothing else would help, to increase the population of this country. It would give a fillip to all sorts of industries. , And if, apart from these deposits, the world's supply of iron-ore is likely to give out in about fifty years, that would suit the Government very well, I should think, and the people of New Zealand —or, rather, the Bill would—because just about that time they would be able to take over this concern in going order, and they could use the material from the deposits for New Zealand, or they could export it, just as might seem most advantageous. 61. Meanwhile we are depleting our coal very rapidly too?—No doubt that is so. At the same time the mere fact of our holding on for fifty years is not adding to the world's supply. 62. We are conserving a material which will be very much more valuable in future?—ln forty years, oh the present estimates, we shall not have used up such a large proportion of the iron-ores available in New Zealand, and we shall have this business then available to the people of this country as one of the finest assets that the people could wish for. 63. Mr. Nosworthy.] I understand you to say it is possible to read the 1898 Act to imply that the holders of these leases have them in perpetuity?—l was speaking only of the Cadman lease. 64. That is the main lease, is it not?— The Onakaka lease is 900 acres, and the Cadman lease is 920. I know nothing of the relative values of the two properties. 65. It seems from that that there is a possibility that the holders of that lease at the present time have this Dominion by the,wool, so to speak: it cannot do anything. If they like to pay the present rent for twenty years they still have a monopoly and can shut anybody else out? — There is a good deal in what you say there so far as the Cadman lease of 920 acres is concerned. It means this : that if the present lessees of that property comply with the conditions —and they are not very onerous for such a big thing—at the end of forty years they will have the valuable property which, under our proposals, the Dominion would then have. But, as Mr. Thomson says, the reserves will have been depleted to some extent. 66. The point is this : if they have the right and they like to comply with the conditions, say, for fifty years, and iron becomes very dear in the meantime, they still hold the concession— the country has not got it?— That is so. 67. They have a monopoly, and they can hold on, and after the lapse of years decide to work the thing? —Yes, except that the Government have the right to take the Parapara undertaking on paying compensation; but, of course, the compensation would probably be very large. 68. Are the Committee to understand that at the end of forty-two years, if the construction is put upon the lease that you say may be put upon it, the Government cannot then take it?— Only on paying compensation. There is the right to take it on paying compensation at any time. Mr. Blow: It says that the Government shall not exercise that power within twenty-eight years. Witness: It appears to me to be any time. However, Mr. Nosworthy's question applies only, 1 think, to a period after twenty-eight years. 69. Mr. Nosworthy.] At the end-of forty-two years the Government, at the rate of £32,500 a year, would have paid £1,365,000: is not that about it? —No. Under this Bill the period is forty years, not forty-two. That makes it £1,300,000. 70. As far as I can see, the present position is this : whether this company comes to an arrangement with the Government or otherwise, it has absolutely got control of the iron-deposits in Golden Bay, whether it likes to work them or not?— No. There is another property of 900 acres be ] onging to the Onakaka Company. 71. But it is fair to assume that the company would not be negotiating unless they were satisfied these deposits were about the best of the lot ? —Possibly the Parapara people think they have the best property, but I can express no opinion upon that; and I would rather not in -any case. 72. It seems to me that the present company, in the position they are in, have the right— that is, in the event of the Government not assisting them to develop the iron-ore now —to conserve it until such time as they choose to develop it?—No, they have got to do a certain amount of work. 73. Nothing on the scale that we have been led to believe?— No. 74. They have got to keep moving, and that is practically all? —That is right. Hon. Mr. McKenzie: May I explain? There is a condition in the existing lease that the company must work the deposits after the lease has been in existence for a certain time. They must have so-many men employed each year —a gradually increasing number. What they have been doing so far is to get a reduction of the number of men employed on the ground. Witness: Mr. Smythe put in yesterday, I think, a list of the expenditure. 75. Mr. Nosworthy.] From what I can see the position of the proposed company —the Ethelburga Company—is not at all hopeless : they have only got to hold on for ten or twelve years, and if there is a great improvement in the iron industry it may be worth their while to come in and start without receiving any assistance from the Government at all?— That is so, no doubt, if they could still acquire the Parapara properties, or perhaps the Onakaka as well. I do not