AUSTRALIAN COAL.

Auckland Star, Volume LIX, Issue 232, 1 October 1928, Page 4

AUSTRALIAN COAL.

IMPORTANT PROPOSALS

TO REVIVE INDUSTRY

New Zealand coal-owners may have a new problem on their hands shortly. The New South Wales' Government, with the assistance of the Commonwealth Government, is making a big effort to capture overseas trade, and this Dominion is one of the territories where they hope to increase their trade. For some years now the Newcastle coal trade has been losinp ground, chiefly because the export trade has disappeared in competition with Japan, South Africa, and even Great Britain. The magnitude of the crisis and the real seriousness of the position did not seem to dawn upon the people until it was announced that the South Australian Government had arranged for a supply of coal from Wales landed at a price cheaper than it could be supplied from Newcastle. It was then felt that the industry had been allowed to drift far enough, but actually it was rather late in the day to stop that drift, and there are many who believe that the scheme will not be as successful as anticipated. The prime mover in the appears to be the New South Wales Premier, Mr. Bavin, who seems to have modelled it partly on the lines adopted in the butter industry, under what is known as the Patterson scheme. He suggests that coal for expprt should be subsidised 5/ per ton, of which the miners should contribute 1/, the owners 1/, and the balance should come from the Government. It is stated that the shipping companies have agreed to reduce freights at least to the extent of the reduction in the cost of their bunker, "so that the reduction for inter-State and overseas trade will be 5/ per ton. plus the freight reduction. This, comments a Sydney writer, should mean a great deal to New Zealand consumers of Newcastle coal, and it is at least conceivable that the scheme would residt in a substantial reduction in the price of gas iu the Dominion, where bo many of the gas companies prefer to i use Newcastle coal." As with butter the chief burden of this county scheme would fall upon the Australian consumer, and it is nt surprising that Mr. Bavin has not been able to immediately repeat the success of Mr. Patterson. His proposals have been rejected, but he has announced that he intends to still fight for his objective. The news of the Australian move met with a counter "gesture" in the New Zealand Legislative Council, where a proposal was put forth that a duty should be imposed on Australian coal. West Coast Conditions. A West Coast colliery proprietor in discussing the threatened competition from Australia, stated that a reduction in the price of the Australian product was simply the handwriting on the wall for a general levelling process in prices, which could not be ignored. He predicted that in a very short tune the New Zealand public would be able to purchase cheaper coal, and colliery owners would have to reduce their prices accordingly to compete against the Australian article. Recent developments in co-operative coal mining on the West Coast indicate marked changes in methods of coal production. During the past few years, more particularly in the last twelve months, co-operative mines have been springing up like mushrooms, much to the alarm oi both coal owner and coal merchant. One co-operative concern, marketing part of its product in Grey-mouth, is now retailing coal at 7/ per ton under the price charged by rival concerns. Another factor of co-operative mining is its disturbing effect upon the miners' organisations generally. A case in point was the demonstration at Roa some few weeks ago against the working of the mine there by tribute on the ground that the system was striking at the very roots of the principles of unionism. Other similar demonstrations in the Buller district resulted in rccent Court proceedings at Westport. Preliminary steps were taken by co-operative miners 'in the Grey district at a meeting at Runang.i to form ] an organisation, but whether tiic co-oper-utivc miners will form an independent union or link up with the Miners' L'uions in their respective districts is a question which has yet to be decideu. The question as to whether co-operative miners and unions will come to a mutual understanding or whether there are to be turther developments is one that is causing a great deal of conjecture on the West Coast.