Price of Explosives.

Hokitika Guardian, 8 June 1922, Page 1

Price of Explosives.

ANOTITET? REDUCTION TO BE MADEThe Minister of Mines (the Hon. O. j. Anderson), who lias received many complaints regarding the prices of explosives, stated at the week-end that as a result of his discussions with the manufacturers a reduction would he made next month, and a further* reduction in October. A third reduction is promised at the end of the year. The amended charges will give material relief to the miners. During the period of the war, the selling prices of permitted explosives, like most other commodities, increased considerably. Prior to the making of the national agreement on February 23rd:, 19*20. the coal hewers had to pay solilng prices current for the explosives used hv them in winning coal, hut that agreement required the colliery owners to supply explosives to the miners at reduced prices, involving in some cases a considerable loss to tlic owners. This practice continued until the several district colliery awards made by the 'Arbitration Court, came into operation in January la s t. when it was provided that the miners should pay whatcver.prie.es were being paid by the colliery owners for such explosives. Complaints have from time to time boon made as to the prices charged for permitted explosives. The Minister said on Friday that the matter had been engaging ihe unremitting attention of the Mines Department since .Tune 1920. The manufacturers of the hulk of permitted explosives used in the Dominion were then strongly urged to reduce the prices and from time to time since that date they had been pressed to make reductions. During the past feu* weeks the Minister and the Under-Secretary have had a number of interviews with the manufacturers’ s Australasian representative, who was urged, as a matter of vital necessity to the miners, to make a further reduction ill price. The representative produced the original cost-sheets of manufacturing, the explosives at the company’s factory at Deer Dark, Victoria, income tax returns, and. other data, for inspection and investigation by the Mines Department’s officers. The documents were closely scrutinised, and they did not appear to indicate that the manufacturers’ factory prices were excessively high, hearing in mind the increased prices which the company had to pay for ingredients. It was pointed out by the Minister that alterations could l>o made in handling the explosives, and that the selling organisation could ho altered so ns to materially reduce the handling and overhead charges. Within the past feu* days the Minister has been advised that the prices will l»o reduced considerably as from October Ist next, the date tiie amended selling organisation is to ho brought into operation. Jt lias also been intimated to the Minister that an interim reduction in the prices will ho made from July Ist next, based upon the reduced manufacturing costs over fwo six monthly periods. In consequence of a new- contract having been lot for the supply of glycerine at a fairly substantially reduced price, which comes into operation in November next, a still further reduction to the consumers of permitted explosives will he made as from January Ist next.