A. W. BLAIR.]

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I.—l

The Chairman: Mr. Myers, this agreement of yours relates to the old agreements. Would it be possible to put in the agreement relating to the present arrangement? Mr. Myers: I said there were no material alterations made in the old one. I will put it in, Mr. Chairman. [Agreement handed in.] 22. Mr. Sidey.] Mr. Blair, what do you mean by this : that the country ought to offer as good terms to any others who may come forward? —The reason I mentioned it was because Mr. Myers said in his opening to the Committee yesterday that there was only room for one concern in New Zealand, and I take it to be that that is the Ethelburga Syndicate and no other; and it really means, therefore, so far as the Onakaka people are concerned, that they must either come into the Ethelburga at whatever terms they want or stay out in the cold —because they are not going to get 10s. per ton on their output throughout the period : the Ethelburga people only propose that anything be given to that company. 23. In what direction do you suggest the State should protect the other? —It could be protected by providing that any company which is prepared to make what the Government considers the most advantageous bargain should be enabled to take advantage of it, and if necessary even more than one company if another one is prepared to do it. 24. You mean we should invite tenders, letting it be known that we are prepared to offer certain terms ?—There certainly would not be more than two people—only the Parapara and Onakaka people. 25. I am not quite clear as to how you suggest the State should place its proposals so as to put these companies in the position of competing with one another for terms ? —lf the Government is prepared to offer similar terms asked for to another company which will be prepared to undertake the initiation of the iron industry—then, if we can offer a better proposition than the Ethelburga people, it is suggested that we should get a hearing upon that matter, and that the Government should not keep in view one particular company only, but any company which is prepared to commence and can-y on the iron industry. The Bill does not refer to any particular company, and the whole matter that is before the Committee consists of the suggestion offered by the Ethelburga Syndicate. The Bill in its present form defines —" ' The lessees ' means the company or persons who, under the provisions of the Act, contract with the Government." The Bill in its present form is all right. 26. Have you any suggestion as to the modification of the terms of this Bill in any way?— The position is that there are definite figures and definite sums stated which possibly might not suit another individual case, and I am not prepared to point to any particular section which might require amendment; but the Bill, I suggest, should be looked at with a view to making it of general application, and not of particular application, to the Ethelburga Company. 27. Meantime you are not prepared to suggest any specific amendments to any of the clauses of the Bill? —I am not so familiar with the matter as my partner, and. am merely carrying out instructions with regard to it. 28. Hon. Mr. McKenzie.] Has the Onakaka Syndicate made any offer to the Government for the erection of iron and steel manufacturing works up to the present?— No. 29. Do you know of any other company that has done so, outside of the Ethelburga Syndicate? —If the same offer is made to us as the offer contained in that proposal, we will not have -the slightest difficulty in taking advantage of it. 30. You say your company has made an offer?— Our company only completed its lease within the last month or so. 31. Is there anything in that Bill to prevent your company making an offer now?— No. What we would like the Committee to keep in view is the possibility of their company not being the only Richmond in the field. 32. As far as you know there is no other proposal before the Government at the present time, and consequently not before this Committee? —That is so, sir. The Chairman: Mr. Myers, I understand you will put in a copy of the agreement as between the Parapara Ore Company- (Limited), the Christchurch Mining Company (Limited), and the Ethelburga Syndicate? Mr. Myers: I may say that the option will expire shortly, but I understand from the Parapara people'that there will be no difficulty in extending it. [Agreement handed in.]

M. Myers recalled. (No. 12.) Witness handed in a copy of an agreement, dated the 10th June, 1912, between the Parapara Iron Ore Company (Limited), (Ist part), the Christchurch Mines Development Company (Limited), (2nd part), and the Ethelburga Syndicate (Limited), (3rd part), extending the agreement dated the 7th September, 1911, copy of which he had already handed in.

H. J. H. Blow examined. (No. 13.) 1. The Chairman.] What is your name? —Horatio John Hooper Blow. 2. What are you?—Under-Secretary of the Departments of Mines and Public Works. I may say that I have written out what I have to say re the Ethelburga petition. My contention in reference to this matter is that the business will be sufficiently profitable without any State assistance ; It has been given in evidence before the Committee that the circumstances in connection with this venture are much more favourable than in connection with a similar venture now being started in New South Wales, and the latter venture is being undertaken practically