IMPORTED COAL

Evening Post, Volume CIX, Issue 145, 23 June 1930, Page 11

IMPORTED COAL

PROPOSED: BHTY

CAS COMPANY'S POSITION

It is understood that representations Lave boon'made to the Government, on behalf of gas companies, regarding tho probable effect of a duty on imported coal. This action is the outcome of a movement in the Dominion in the direction of requesting' tho' Government to impose a dumping duty on Australian coal. It has been stated in. advocacy of such a duty that the Australian Government subsidises coal for export to the amount of 3s 3d per ton; also that New Zealand is able and willing to ' lupply all coal roquircu for gas making' and other purposes. The caso for tho ,gas companies as submitted' to the Government may bo (summarised as follows:—(1) That there is no subsidy, bonus, or similar Government monetary assistance givsn or alJowcd to exporters of Australian coal to New Zealand; and (2) that it is absolutoly necessary under modern conditions of gas-making to use a proportion of coal of the character produced in tho Northern mine's of New South Wales and not producod in the mines of Now Zealand. ■ As to tho first pomt —Now Zealand is regarded in Australia as a State of Australia in respect to payment of the export bounty oi Is per ton) and therefore such bounty docs not apply to the Dominion, although it is being paid upon exports to foreign countries —the coast ports of -South America, for example. The Government of Now South Wales has made concessions to the northern coal' mines industry in haulage . rates and cranage charges, and roduced wages and reduced- pro^s have been accepted ' by miners and mine owners respectively. Incidentally, although the price of Newcastle coal has been reduced1 by 3s 3d to 22s lOd per ton f.0.b., that price is 4d per ton more than it was • before tho miners stopped work over 15 months ago, when coal was freely coin- . ing into New Zealand and no demand ■was made for a duty on it. • A3 to the suitability of New Zealand coal'for gas-making—the experience of the companies using modern plants is thafcoal best suited to their purposes is unavailable in New Zealand in quantities sufficient for their requirements; . whereas coal from Newcastle is. suit- . able in every way for gas-making, being easier and more economical to treat • and producing a better article, in short, it is superior in' every respect to the best Now Zealand coal for tho,.manufactine of gas and its by-products. 'Records kept by the Wellington Gas Company show that sinco its supplies of Newcastle were' cut off the output of gas per ton of'coal carbonised foil, from " approximately- 22.000 cubic feet to IV.OOO cubic feet per ton,' with an additional'production of coke, but that of inferior quality. Additional expense amounting t0,£700 per mouth was incurred by the company through carbonising other than Newcastle coals. Notwithstanding heavy losses sustained by' this 'company through being uuablo to obtain supplies of Newcastle coal over tho period of the long duration of the stoppage of the New South Wales mines, no portion of this additional cost ■ of production of gas was passed on to the company's' customers. On its own behalf the Wellington Gas Company has informed the Government that its policy has been to make frequent reductions in tho prico of gas for cooking,' heating, power, and other purposes. Even if a duty were imposed on coal imported from Australia, the Wellington Company would still have to obtain fairly heavy quantities from that

source, but the extra cost would have

to be passed on to gas consumors. The „ price of gas being influenced by Government regulations, a reduction in tho price of coal would mean a reduction in tho price of gas to 26,000 consumers in Wellington alone. Tho Government is assured that the company's policy is to encourage local industries whenever and wherever it is practicable to do so, and if means can bo devised • by which it can economically use a still larger proportion of New Zealand coal in the future, then it will do so and purchaso the necessary machinery to . enable 'this to be done. ■ The Government has been reminded that large gas making undertakings find it necessary to hold big reserve stocks oi coal in order N to provide against shortage of supplies- due to stoppages1 of work in mines and delays to shipping by stress of weather or other causes.. , Newcastle • coal stocks .'_ can be stored in the open without loss; New Zealand coals, on the contrary, de- ! feriorate when stored in the open. Another point to which tho Government's attention is directed is the competition of fuel oil. This is described as "serious." This oil, it is shown, is imported from foreign countries and admitted duty free. It has already been nsed to displace coal gas formerly used' in a large industrial undertaking -in Wellington. To allow fuel oil produced in foreign countries to be admitted duty frefe'aud to placo a duty on Australian coal to bo used in production of gas would be considered as unfair by New_ Zealand gas-making interests, - municipal or private. If a duty is to be placed upon coal imported from Australia whence it is essential to draw supplies for gas purposes to mix with New Zealand coals, then, it seems, thore will be no alterna- , tive but to raise the prfce of gas.