COAL SITUATION

Dominion, Volume 12, Issue 251, 17 July 1919, Page 6

COAL SITUATION

STATEMENT BY MINISTER ACTIVITIES OF DEPARTMENT REASONS FOR RESTRICTIONS An important statement dealing with the coal situation was made yesterday, by the lion. A. -\l. Myers, -Minister in charge of coal distribution. Mr. Myers specially emphasised the fact; that his responsibilities lay in the direction of endeavouring to import.as much as possible from overseas, and seeing that thai coal, together with the output of ill* New Zeai.and mines, was distributed to the- best, national advantage.

"In 11)17," said Mr. Myers, "the Government decided, after carefully review, ing the whole position, that in the national interests some efficient method ot j coal control was necessary to guaru against any stoppage or curtailment ot the Dominion's industries or services. With this end in view the Coal Trade Keguiations were gazetted, on i'Vuruury 5, 1017. These regulations were divided into two parts. Part I, which came into operation immediately, authorised tho Aliiiisler in charge (the Hon. Arthur Myers) to collect any information he required necessary to enable him to exercise the desired control. Part 11, however, as amended later, was really the. operative part of the regulations, ami came into operation on August 29, 11117, It authorised the Governor-General by warrant gazetted to constitute any part, of the Dominion as a coal trade district, and at the same time to appoint for eacn such district a coal trade committee, the functions of which were to inquire, at the Minister's request, into all coal matters, including tlie granting of permits under the regulations. Auckland, Wellington, and Christchiirch were thereupon gazetted as coal trade districts, aDd committees appointed accordingly.

"No necessity existed at this timo to extend the system of control to the Otago, Southland, and Westland districts, but the two former were duly brought into line on -May 10, 191 S. In addition to the coal trade committees already referred to, (ho members of the Suppu'e.' Board of Advice (Messrs. .4. H. Miles, Alexander Macintosh, and George Wilson) were appointed on February a, IAI7, to inquire from time to time, at the request of the Minister in charge, into all matters concerning coal in so far as such matters fell within tho scope of the coal trade regulations, and to ad-rise tho Minister accordingly. The designation of this board was then altered to tho Munitions and Supplies Board. It may bo mentioned here that the members oi the Munitions and Supplies Board as well as the members of the various coal trade committees gavo their services gratuitously, the Government, only bearing the expense of administration. The members of the board continued in office until tho signing of tho armistice when the control of the Department was handed over to Mr. If. J. Gunn, a most e.\perieneed oflicer in coal matters who has been officcr-in-charge ever since. Australian Strike and "Go-Slow" Policy. "It will be remembered that at this time—August-September, 1917—the big coa,l strike in Australia was in progress and New Zealand was relying solely on the local mines for her supplies of coul. This strike was preceded by tho 'go-slow' policy in. the New Zealand mines, conscfiuantly. the stock of coal in hand rendered conservation measures absolutely imperative. This will bo more readily appreciated when it is shown that, the outputs una '.asportations fts.-' '."•.• year 191 V as against 1916 were as follow— Year. Outputs. Imports. > Totals. 191G 2,257,130 2!)3,95(i 2,551,091 1917 2,008,419 291,597 2,360,016 Decrease 188,718 2,359 191,075 "In connection with the above, lighting regulations were gazetted on June li, 1917. which gave local bodies or companies concerned with tho supply of electric or gas 'lighting, power to impose such restrictions as they thought fit upon the use of coal gas or electricity supplied by such local bodies or companies, the primary object being to enconomise in tho direction of advertising, verandah or external lighting, excessive window and 6trcet lighting. In this connection the local authorities were duly communicated with with a view of their taking such action as might commend itself to them. As from August. iniS. Government offices were closed at 4.30 D.m.. instead of 5 p.m., in order to economise in lighting, such offices cnmmciu-inc busines.-. at 8.30 a.m. in lieu of 9 a.m. On July 5 regulations were gazetted declaring that the manufacture niidsunnlr of coal «nn and electricity for light and nower were essential industries in tho public welfare. Jn addition, regulations were gazetted on Juno 11, 1917, entitled the 'Shipping Eegulations,' which 1 made it unlawful for any ship registered in New Zealand to leave tho Dominion for anv port beyond tho seas, or to leave a proclaimed port in New Zealand exrent with a license issued by the Minister of Marine. At this time, however, ail oversea ships arriving in the Dominion were under imperial instructions, and it was not possible to make regulations novei-nine; their movements in New Zealand waters.

"Farlv in 1913 the whole position was again carefully reviewed, and the stocks held—especially of hard coals—warranted the adoption of stricter measures in order to secure closer control of distribution. The Minister in charge therefore decided to take steps to influence distribution of coal to localities where it was most needed. This action was considered necessary, so that essential industries and public services could, if possible, be. provided with sufficient suitable coal to avoid any dislocation of business. Tlin various coal companies were therefore requested to telegraph the Minister not later than tho Wednesday every week, tho estimated output for the following week, together with the proposed allocation, ports of discharge, and consignees. The Minister would then wire his decision when arrangements for 6paco could be made with the shipping companies concerned, such Allocation to bo duly notified. This scheme hns been in operation ever since, and is giving satisfaction. Importations being the main factor with which I was concerned in increasing the supply of coal available, cablegrams were repeatedly dispatched to the High Commissioner for New. Zealand. London, and the Secretary of State for the Colonies, during the year 1917, asking whether it was possible to arrange for overseas steamers which were coming out practically in ballast to lift Newcastle coal for New Zealand, but owing to the food shortage at Home, and the urgent necessity for getting our produco nwav lo relieve the position, as well as for carrying troops at the earliest possible moment, this could not be arranged. ,

Imoort of Hard Coal Necessary. *'[t miiv be pointed out here that 'lie New Zealand output, of hard coal has never been sufficient for its requirements. IJelief lias always been necessary from \ewcaslle to tho extent of up to "nearly half a million tons annuiilly in normal times. On the outbreak of hostilities rim effect of war conditions immediately made itself felt, and resulted in cousidcrablv rcducefl importations, coupled with which the output of hard coal from our own mines was steadily fining down; also, tho consumption of hard coal during the war has been increased owing to the war artivitici extending to certain industrial onerations. This rendered some nietliod neeessarv lo divert, hard coal to industries, including railways, which arc denondeut on this class of coal. Measures were therefore taken in this direction by limiting (he use of hard coal in areas where liirnilo coal was plentiful, and m Christohurch no .hard coal Can he delivered for household consumption unless an conivalent uuantily of lignite (when is delivered 'it the same time. Ir. Dunedin three-quarters of all coal delivered for domeslic use miisl be other than hard, a small proportion of hard coal heimr necessary to permit of the 'lower enide lignites being used lo advantage owiuc to the relatively low heating values of many of the iignite coals mined in Otano and Canlcrbury. It'was the custom un to about April or May, 1!)18, to give bunker supplies lo oversea steamers leaving Australia for the United Kingdom, via Wellington am! the Panama Canal, equivalent to the quantity consumed on the voyage from Australia to

New /Miami. This, of course, was adopted to make all possible space available fur foodstuffs and troops going to •'lift Unitfd Ivinffdoiij. However, our supplies worn in such a precarious condition thai the attention of Hie Australian authorities was forcibly drawn to the (act that unless our supplies were immedialclv augmented by shipment.* Iron) Australia, we could nut meet hunkering requirements of through steamers. We were in possession of reliable information at this time that Australia was holding plenty of eoai for Kale, providing we could liml ships in lift it. The Union Company pointed out. at fhis juncture thai they couiil not curry more coal from Newcastle than about 10,000 lons per month without interfering with the conveyance lo (ho Dominion of such articles as case oils, paper, corn sacks, woolpueks, vegetable oils, salt, fertilisers, wattle bark, and other essential commodities, stocks of which were universally held in small quantities. In addition, arrangements had to be made to carry from Australia, 23 million bushels of wheat. In view of these facts, Die Australian Government were requested to let us have a few special cargoes of hard coal by one of the Australian colliers. This arrangement suited our reouirements much better than having coal sent over to meet bunkering requirements of Australian oversea vessels. "As the outcome of these representations a collier was immediately dispatched with 4000 tons of coal. Permission was also given for the Perth and Melbourne to proceed to New Zealand with coal and take .back cargoes of timber. The Shipping Controller was uiiabJo to divert other steamers, as several o[ the larger ones had been requibitioned to take foodstuffs overseas. Repealed requests were made for further relief but it was stated that the coal requirements at the various Commonwealth ports would not permit of any other boat being spared, but that tho running of the Perth and the Melbourne would not bo disturbed. As e. matter of fact the coal situation in many of tho Australian States has been, for some time past, just as acute as in the Dominion, and regulations on the same lines as those in operation here have recently been gazetted, whereby all coal, including the amount to be exported, can he regulated. The carriage of hardwood timber fscm ■Yustralia, which was usually carried on colliers, has had, to be practically discontinued altogether to load colliers to their full coal-cnnying capacity.

Diminution During War Period. "Coming to 1919, it is necessary to review the outputs and importations m order to illustrate how supplies nave gradually diminished during the war period. Impor- | Tear. Outputs, tations. Totals. 1914 2,275,593 518,070 2,. 93,663 9 5 2 208 624 353,471 2,238.095 01G o 057 135 293.956 2,551,091 191?:::::: s#» *« mw «« . oi 1800,414 258.212 2,0i5,820 from which' it will be seen that to the end of 1918 there were threequarters of a million tons less to in 1914 Taking a comparison ol Hie nut "months of this year with a .miliar period last year, does not disclose a po» - i tion any more satisfactory, as the outjnuts of'the New Zealand mines.show * £ase of 125,197 tons The imports fortunately, however, show, au incuasc !«f 49 641 tons, thus making the net ! decreaso 75,556 tons. The. increase in '■ hTtnportations is the direct outcome i of repeated representations .made to the OverS Shipowners' Committee and, Imperial authorities through the High Com-mic-inner for New Zealand, '"-rie Safest failing-off during the war period however has taken placemii cs%u^^^^ crb' Tons. iSlo U''2 047 IM 1'«47,989 1917 %&,m „:„„ ,11 shinning, both weal ami hilci ping a 1 sl "P p 'Ti U . iwl t0 this, many of JMStf. y;»aft scourge. ; No «» ne F «' *^™\ e| U«ie °"- r \ltaSi, ,nd shipmmm v 7o,vTiwl crews As influenza is still SawlnAultrMia. these ships are still subject to quarantine delajs. Representations Regarding Shipping. "For the last six months every possible effort has been made to influence he Shipping Controller to allow overseas tonnage-to lift cargoes'of coal at Newport News and Newcastle en. route o New Zealand, and it is gratifying to observe tfiat these representations are now resulting in our importations being considerably increased. Three large vessels have brought cargoes of American coal, •.ml live more r.'-o now en route, making the total quantity from this source alone some 37.M0 tons. The shipments received to dale came when our stocks were in a. very precarious position, and, despite the hi«'h cost, were disposed of to railways, freezing companies, tramways, etc. Owin» lo ihe increased demand for this coal in" America, unfortunately, the price is rapidly rising in common with other parts of the world, the last shipment being -£1 9s. Gd„ f.o.b. Newport News, against il 25. Gil. for the first, ex Ttaranga. Representations •have also been repeatedly made through the local Overseas Shipowners' Committee to secure overseas bottoms coming- via Newcastle., including insulated steamers, to lift cargoes of coal for the Dominion as well as sufficient to meet their own bunkering requirements, but owing to the fact that practically all shipping is still under the control of the Imperial Shipping Controller, and that the food shortage in the United Kingdom made it imperative to dispatch these vessels with tho least possible delay, very little relief was forthcoming us'far as insulated space was concerned. Conditions here, however, had reached such a critical stage that, it was pointed out that increased effort would •linvo to be made to lift cargoes at Newcastle or America. Failing this, the Government of New Zealand would be reluctantly compelled to limit bunker sup. plies lo oversea steamers to carry them as far as Australia only, instead of Panama Canal, unless they brought u cargo of coal from either of the above sources for use of ihe Dominion's indtotries. Tho outcomo of this pressure was the London Tonnage Commit tee agreed to release the space, but the freight rate must, be 455. per tou. Government, protested against this high rate, but owing to our dire necessity accepted i shipments that had already been arI ranged. The question was therefore reconsidered by Ihe Tonnage Comiivmt*,' and (he rate reduced to 375. Gil. per ton. "In connection with overseas ships it has to be remembered that these vessels have, during the war period, been under the control of the Imperial authorities; moat of them carried our reinforcement drafts and lifted cargoes of our produce when cold storage in the Dominion was congested. These conditions made it absolutely necessary for the vessels I'o be got away with the least possible «• lay." and consequently they could not bo detained Jo pick up cargoes of coal. As already explained, this control of shipping has not yet beer, lifted to any degree. In addition to this repeated conferences have been held with the general and traffic managers of the Union Steam Ship Company with the view of ascertaining whether additional bottoms could he procured for coal carriage, but the depletion of their fleet for war purposes rendered Wis practically impossible. In fact, as is commonly known, important, general cargo, both from Australia and coastwise, has been locked out to release alt possible tonnage for coal. At the be- I ginning of this year there was a possi- j h'iilv of our securin ".supplies from Poulh Africa, but owing to a change, in ] the routing arrangements for overseas vessels, the matter meanwhile lapsed. In this connection it should be stated that, the cost of this cnal if obtainable would be about 85s. per tou. c.i.f. Wellington, anil previous expeir.nee of its quality was far from satisfactory. Investigations have also been made with a view to ascertaining whether lh<v .wo anv prospects of securing Japane.-r, and Indian coal, but this is not practicable owing to the quality being unsuitable for our rci.iiircmcnU, and the price for Japanese—X'7 ft tin, cii.f— beint; prohibitive.

Exportation of Coal. "The Minister in Charge, in reply certain newspaper statements in this direction, has made several statements cmphnsUing the fact that absolutely no coal is being exported from Hie Dominion except that required for bunkering ships, and measures to restrict this were now under consideration. As explained previously, quantities of West Coast coal had also been exported for the Admiralty, but only on the understanding that an equivalent quantity of Newcastle coal be supplied in exchange on each occasion. Despite these announcements, various resolutions had since been passed protesting against the <siii|>po-;?i| exportation. Household Supplies. "In the allocation of supplies every endeavour had been made bv the various coal trade committees to distribute as much as possible for domestic requirements. Unfortunately, however, (here had been times when the demand for household coal considerably exceeded the supplies available. Every' effort had, in the circumstances, been made to keep gasworks fully supplied, and it was recognised this was the most efficient method of conserving coal .supplies. It may be remarked here that at the present time many of the gasworks—especially in the larger centres—are being maintained practically on daily supplies coming lo hind. "The position of household requirements in Wellington this winter was of so uncertain a nature that it was found necessary to amend (he Coal Trade TCc-gulntion-i, making it necessary for retailers to obtain a permit from the local committee bM'ore any quantity of coal could bo delivered. The system is extremely simple in operation." Dealers forward a duplicate of orders taken daily to the- Coal Trade Committee, who, by a card system, c*n ascertain whether any person has already v'accd an order with another dealer, or" has been successful in securing supplies in excels of the quantity permissible. When the duplicate orders have been cheeked they are dealt wilh by the committee and. permits for delivery duly forwarded to the dealer ""in cases where everything is in order. This system -will be extended to other centres if circumstances warrant same.

"Owing to the acute shortage of coal for domestic n-o the Minister-in-Charge had placed a recommendation before hi* colleagues to establish a firewood depot on the reclaimed land, off Davis Street, Wellington. This had been approved, and the depot, which is connected by rail and road, is now neariug completion. Supplies of good household wood are now coming to hand and will be available for purchase within a day or two, at a price that will compare very favourably with that at present ruling. Depletion of Railway Stocks, "From the foregoing it must, be conceded that no stone lipjj l>e'en left unturned to augment our supplies from sources outside the Dominion, but owing to strikes and the influenza epidemic, with consequent serious reduction in tho output, it will 'be seen from the figures submitted that, the shortage has become more acute. Tn this connection it must be placed on record that a curtailment of railway services was contemplated in May, 1918, when their stocks were down to 17,000 tons of hard coal—a little over throe weeks' supply. As the outcome of a conference held with the Minister of Railways and myself and Departmental officers, it was decided to defer the cut a? there was every indication that sufficient, coal was in sight from Newcastle, and that tho minimum weekly quantity, namely. 5000 tons, enabling them to maintain full services, would be forthcoming. This undertaking was duly given effect to, and stocks were gradually built up, until, at. the end of October 'just before tho enjdemic), the Department was holding .15,009 tons—equal to seven weeks' •supply for full services. As has already been explained, however, the epidemic had disastrous results as far as outputs and importations were concerned; consequently, le.=s coal could be allocated for railwor purposes. Stocks, therefore, deerrarsd until at the end of December they had fallen to 20,000 tons. Owing to additional services being provided over tho Christmas and New Year holidays, stocks were further denleted to 11,000 tons on January 2.5, 1919. At Ihe same time it must be* taken into consideration that the mines woto. closed down for a'bont ten days owing to the holidays, which enormously increased the difficulculties of allocation. Tho . shortage of miners also became more acute at this stage owing to a lame nmnb?r of men who had taken up minim; temporarily during the . war period taking up occupations in other directions. However, despite these adverse conditions, railway stocks were again built ire until at the' end of March they stood at 25,000 tons, but following the Easter holidays, when additional trains were again provided to cope with the services, stocks were reduced until, at the end of April they were down to 21.000 tons, since when they have been steadily going down, reaching the 10,000 mark when Ihe present cut was nut into operation. The fnlling-off since the end of April is primarily due to ths present shipping strike in Australia, us only three steamers manned bv New Zealand crews are. left in the running, and i'hese are still subject to Quarantine restrictions. In ..addition to this there has been a decrease in outout from the West' Coast collieries for May and June this year, as against similar months last year, of 16.025 lons, and in importations on the same basis a decrease, of 3000 tons, making a total for the two months of 43,62,5 lons. During May and June several stoppages took place in the West Const, lignite and Waikato mines, which seriously restricted not only, supplies available for railway requirements, out for other essential industries. An Erroneous Impression. "There appears to be an impression abroad that the whole output of coal from the West Coast mines could be drawn on for railway purposes. This idea is quite erroneous, as the railways require screened coal for their services, which represents only approximately 40 per cent, of the total output, tho balance, small coal, being utilised for gas wo-rks. tramways, freezing companies, and bunkering steamers. It is desirable to point out f-bat the policy of the Coal Control Department has always been to allocate available supplies In tho direction where they are most urgently required in order to maintain public activities, essential industries, etc., any curtailment of which would have resulted in widespread unemployment and financial loss to the Dominion generally. So far as my Department is concerned we have looked ahead and endeavoured to anticipate 1 he position by influencing supplies from every available source.

"From the foregoing it will be seen that pressure lias been brought to bear in every direction tn influence tonnage to lift cargoeo of coal en route to New Zealand, and also to secure additional space for tho carriage of coal, which ha? resulted in the exclusion of general cargo. Numerous cablegrams have been dispatched to the Secretary of State for the Colonies, the High Commissioner for New Zealand, tho Australian Government nnd Iho Australian Shipping Controller, stressing the dire necessity and emphasising the facts that if relief were not fi-rth; coming drastic curtailment of (he Dominion's activities would result, and that a restriction on Iho bunkering of overseas vessels carrying produce to relieve Hie acute food shortage in the United Kingdom would have to be brought info operation. As has already been disclosed, these repeated representations have had the effect of my being in the position to maintain our essential industries, and (his is exemplified by the fact that up to the present time all industries have been kept going. It will also be seen I hat, as far as railways aro concerned, mj DeoaTlment has given urgent nnd special attention to this branch of the rublie Service, as the following figures disclose:— Coal Deliveries to New Zealand Railways During Years ended March 31, 1914, to 1919. Tons. 1913-14 293,157 1914-15 306,651! 1915-16 324,313 1916-17 330,660 1917-18 271,110 1918-19 307,369 Coal Deliveries to New Zealand Railways from January to June, 1919. Tons. i / January 10,959 f February 31,105 March .'. ~ 36,762 April 15,02;. May lil.ms June 13,950 Total 127,000 (Average per month, 21,166. loub.)

"As already explained, the exigencies of the war have been such that shipping tonnage—local, intercolonial, and international —lins been reduced to an absolute, minimum, and as far as tho latter is concerned, owing to the urgent nature of the services on which they were engaged, they could not possibly. bt> detained to pick up supplies of coal lot tho Dominion's industries; but, on (ho oilier hand, had to draw on our meagre supplies of coal to carry them back on the routes laid down by the Admiralty. In this connection, the Government has repeatedly endeavoured to charter vessels for coal carrying, but on account of this extreme shortage it has not. been pray, ticable. However, now that tonnage ii becoming more plentiful, it; has been possible to charter one vessel for ons trip from Australia, and I am now awaiting a reply to a further cablegram dispatched to tho High Commissioner asking whether a suitable tramp collier 01 standard steamer could be released on h time charter to the New Zealand Government. Prospects for the Future. "With regard to the present position and the prospects for the next six weeks n careful review of shipments from overseas in sight, indicates that we may expect to receive over 70.000 tons of coal if the arrangements already mndn materialise, together with an estimated output from tho West Coast mines forJuly of approximately 75,000 tons. Oi these quantities somo 00,000 tons will bo availnblo for railway services. It will thus bo seen that should no unforeseen circumstances arise to interfere with the outnuts and importations, the situation will" lie easier than it ias been for some months past. I trust this statement sets out clearly that so far as the activities of my Department are concerned, it has teen successful in importing largfc quantities of coal notwithstanding the. most adverse conditions, and has effected distribution in the best national interests."