WELSH COAL.

Hokitika Guardian, 2 November 1921, Page 4

WELSH COAL.

STATEMENT BY MINISTER. AVEUffNUTON, Oct. 31. A number of enquiries have been recently made in Parliament and outside of it with regard to the price paid by the Government for Welsh coal imported by the Railway Department. When •seen to-day in connexion with the matter, the lion D. H. Guthrie, ActingMinister of Railways, said: In the first place the importation of Welsh coal was the last alternative. The necessity for the importation will be quite apparent when I say that the annual requirement of the Railway Department is not less than 300, (XlO tons, whilst the largest amount received in any one yean since 1014 hy the Department from the New Zealand mines was 182,(XX) tons, and in 1020 the amount had fallen to below .50,000 tons. It was quite impossible for the Government to keep the railways running, and consequently the industries of the country going, under the conditions which have had to bo contended with during the last three years. The Government decided that, whatever the eost, sufficient coal had to he procured for railway requirements. The Department was offered American ooal, which would have cost the Government £6 6s

landed in New Zealand, ,Japanese coal at £0 J7s ’Jd, South African at £4 12« (id, and Australian at £2 IDs, and thu latter very difficult to obtain. Welsh <<>a] was offered to the Government at £4 8s (id per ton, but it was ufter- ■ yards reduced to £4 ss. Wo liavo bad coal from all these sources, and at the I prices mentioned. By taking the Welsh coal, of which we purchased comparatively large quantities in oi-der to make certain that there would be no reduction Tn railway services, wo get the following results:- -.Purchase price °f Welsh coal per ton, £4 5s o.i.f. , Bright, approximate £1 10s; reducing i 1 r las. The calorific value ol Welsh coal is supposed to lx: from 25 to 30 per rent, higher than Australian real, so that on this basis the cost of Welsh coal is approximately £2 per ton, taking the cost of the freight an<] the calorific value into consideration. The Gnvrrnnient has still a considerable quantity ol tlus coal coming to hand before it reaches the end. of the contract probably 60,000 to 70,000 tons—but if it. can obtain supplies of coal from the local mines, no one null be better pleased than my colleague*! in the Government and myself. In regard to West (toast coal received bv the New Zealand railways during the years ending March 31st 1014, to I‘l-Jl inclusive, the following tabic is illuminating:— ”