COAL PRODUCTION

Hokitika Guardian, 1 June 1932, Page 8

COAL PRODUCTION

COST MUST BE REDUCED

AN IMPORTANT REPORT.

WELLINGTON, May 30. Recommendations of vital importance

dustry, including the opinion that the cost of coal to the consumer must be reduced, are contained m a confidential report on the utilisation of New Zealand coals which was supplied to the Prime Minister, lit. Hon. G. W. Forbes, last year, and who has now authorised its publication through the department.

The report was compiled by Messrs. J. A. 0. Bayne, F. W,. J. Belton, ana VV. Donovan. One of their main points in considering the retail cost of coal is that mining costs must be brought down, and it is suggested that in order to avoid the necessity of drastic ac tion having to be taken by the mineowners to reduce costs, it is most desirable that a joint effort should be made by the owners , and the workers to enable the companies to carry on. “There is no doubt but that gasworks tar can be so treated as to produce a tar complying with British Engineering Standard Association. ’specification,” the report says. “Where roads are being treated in New Zelilafid at the cost of grants from the"Maiu Highways Board funds, it should Jtje it condition of the grant that the tar used should be local tar, if it is available and complies with the specifications.

VARIETY OF USES

1 “ The manufacture o. motor benzol at gasworks should lie ecouraged 1 by granting it either whole or partial exemption from excise duty. Such benzol is tot: lly exempt from duty- in Great Britain, France and Germany.

“It seems likely that, the amount of imported coal necessary for gasworks could be reduced by better use of blend ed local coals.. An endeavour should, be made to get gasworks now using imported co.nl to experiment with blends of local coals in order to see to what extent it would he practicable to use the latter in place of imported coal. “There seems good reason to think that in localities such as Southland a! briquette of good calorific value could be manufactured J| rom a mixture ol .brown coal slack and bituminous coa slack at a cost which would enable it to compete successfully with screened bituminous or imported coal. Thu matter should he further investigated as soon as possible. k > “To retain the present coal market and permit of any expansion in the future it is imperative that the cost o’ coal to the consumer should he materially reduced. Many of the coal companies are now working at a loss. Min: ine costs must he brought down-to enable some' companies to carry on, and the grave danger is-.that the compnniek .will be compelled, in order to exist, to Take action which will he bitterly opposed by the miners’ unions, and lead to more unemployment and suffering amongst the workmen,.

CO-OPERATIVE EFFORT.

.“Co-operative mining lias been wide lv advocated as a means of reducim. mining costs, and it is probable that an effort will lie made to work more mines Under this system. But co-opera live mining is neither the best solution nor a permanent solution of the present difficulty. Considerably better result' could be obtained between the coal companies and the miners, based on > trank recognition of the facts of tin industry by both sides. “At no previous time in the history of coal mining in New Zealand lias there been such urgent need for a joint sustained effort by coal companies am! workmen, an effort whose only ob’oets should be to reduce the cost of mining to such an extent as would enable the companies to carry on and to secure to the workmen engaged in the industry i\ reasonable standard of living and regular employment.

WO UK INO CONDI TlO N S

“A large part of'the increase in the cost of mining since 1914 is not the result of increased rates of wages, bet of alterations in the working conditions, which have been o little material benefit to the workers, but which have added greatly to the cost of production. It should be possible for both parties in the industry to get together, examine the working conditions on their merits, and get rid of ally conditions of working which arc found to increase unnecessarily or unjustifiably the. cost o! mining? Such a revision of working conditions would be of very great advantage at tlie present time to the industry and to those employed in it. It promises better results than anything else, and would <irestall the demand for a further reduction in wages. “A large part of tin* cost of coal to the consumer is made up of freight charges. Sea f"eiglits from the West Coast are, roughly, dm Me wlmt they were ill 1914. The coal industry cannot afford these high rates at the present time, and every effort should bo made to get them reduced. “The existing mines are capable of producing more coal than can he sold The opening up of new mines should h discouraged, and leases under the Coal Mines Act should not bo granted to new companies at the present time.’’