PRODUCTION COSTS

Hokitika Guardian, 4 January 1930, Page 6

PRODUCTION COSTS

HIGHEST IN WORLD. AUCKLAND, January 2. Some sidelights on the coal strike in New South Wales were given by Mr E. S. Marks, a member of the New South Wales State Legislative Asseme bly, who arrived from Sydney by the iMaunganui on a holiday vist . New I Zealand has great attractions for Air j. Marks, who, apart from his political activities, is one of the leading figures , in most branches of Australian sport. This will mark liis third successive ; holiday in New Zealand, and altogether he lias visited the Dominion 13 times. However, he is. not superstitious, and is looking forward keenly to his stay. L . “The coal strike was-responsible very largely for a most strenous Parliamentary session.” Air Marks said “The shooting at RothlniVy was a most regrettable incident, and it will be a long time before.it is forgotten. The Premier (Afr Bavin) is determined to re-establish the coal industry on a sound economic basis, but he is faced I with many difficulties. The great increase in the cost of production is at the root of all the trouble, and coupII led with the increased costs, there has been a reduction in the demand owing to the use of oil fuel. In 1925 the total output from New South Wales mines I was 6,000,000 tons, and by 1928 this j dropped to 6,000,000 tons. The price of : j coal in 1916 was 12s a ton and in 1927 ! "'ns £1 6s. From being the cheapest in the world 16 years ago, Australian coal has now become the dearest. The sniallj or demand is most serious. If the mines were re-opened to-morrow on the conditions demanded by the ‘miners, there would not be sufficient work offering to keep them open more than intermittently. I visited Newcastle recently and estimated that there are between 4000 and 5000 more men there than the industry can absorb. The industry must be reogrnnised. Even under the proposed reduction, the miners would earn from £1 8s 9d to £l 16s 9d a day. | “Not only the ,coal industry was afj fected by the heavy costs of production in Australia,” Air Alarks added. “Practically every industry o'f any importance was feeling the pinch in this direction. In some secondary industries production costs were becoming almost pro" jhibitive. Even though the industries received the benefit of a protective tariff, factors other than the coal strike made the last session of the New South AVales Parliament most arduous. No pairs wedc granted at any time by the Labour Party, and with several Government supporters on the sick list, the voting on a number of important divisions was exceptionally close. Feeling between the parties was very bitter, and Air Bavin bad to fight hard to amend or abolish several Bills passed by the previous (Lang) Government. “Australians are paying more attention to New Zealand as a holiday resort,” Mr Alarlcs said. ‘They are learning something of the manifold attractions you have to offer, and as there is no very great distance between the two countries the tourist traffic will probably increase to a great extent. Several of my colleagues intend to come over here for a holiday during the next few weeks.”