ENGLISH COAL MINES

Hokitika Guardian, 17 September 1920, Page 3

ENGLISH COAL MINES

THE OWNERS FIGURES. i AUSTRALIAN A N.Z CABLE ASSOCIATION] •LONDON, Sept. 15. Apropos of the question of the distribution of the coal output, a White Paper shows that during the quarter ended, June 30th., fifty eight million tons were produced and approximately 9£ million tons were exported. The cost of production' totalled eighty-eight millions sterling of which sixty-six millions were ? paid in wages. The •return shows that the gross profits in coil mining ' for the June quarter was eight millions sterling, but this is subject to charges for interest and depreciation on owners’ profits and capital ad- . justments, making the nett profits foi the quarter 750 thousand or three millions for the year. It is pointed out that Mr Robert gmillieis case |or a reduction of l’4/2 per ton in flifi selling pries ftf coal for domestic use is based p'n the assumption that the industry, will

gjvp a year*s surplus of sixty-six millions sterling. Consequently, it is claimed that the return completely explodes t* lo miners’ claim. . The figures show, moreover that the average earnings of coal workers ..of all grades is £§26 per annum against £B2 before the W ar, Compared with the previous quarter the output of the mines have decreased approximately by four million tons, while the export ■ lias decreased by nearly 2£ million tons. The Miners federation challenges the Governments figures, and states that the cost of production include an abnormal amount spent by the mine owners on development. It contends that this expenditure will continue high as long as thq owners believe that a decontrol is approaching, because their profits are guaranteed regardless of preparatory capital expenditure will continue A capital expenditure which is always counted as items of legitimate cost under the' Coal Mines Act. The Federation attributes the reduction of the output during the three monhs ended June 36th to the usual holidays and contends that its calculations of the annual output are not affected. Tt attributes the redueion of exports on which the most profit is made, to a diversion of the export coal to inland use, in order to build up an accumulation at home, in view of the possibility of a strike. The Federation asserts that with a return to normal conditions in expenditure on development and expenses there will be a sufficient surplus wholly to meet the miners’ present demands.