GRERMOUTH COAL TRADE.

Kumara Times, Issue 1071, 6 March 1880, Page 4

GRERMOUTH COAL TRADE.

[THE PRESS, FEBRUARY 27.] It was stated in the Dunedin City Council the other day that a trial had been made in the Corporation Gasworks of Greymouth coal with most satisfactory results. The engineer reported that he had used that coal for twenty-eight days ending February 18th, and the consumption had been fifty tons less than during the corresponding period of last year, when Newcastle coal was used. More than this, the quantity of gas manufactured was 165,000 cubic feet more than during the same time last year, and the Grey coal it was stated is of two candle greater illuminating power than that from Newcastle. It was remarked that the use of the Grey coal would make a saving in the cost of production of gas in Dunedin of L6OOO a year. Such an announcement should surely have the effect of overcoming the prejudice on the part of gas engineers in the colony against the use of Greymouth coal. This obstacle we are glad to learn, is being gradually removed. That coal is coming more and more into use in the various gasworks in New Zealand, so that in time it may come about that nothing else will be burned. But it is coming into favor not only as a gas producer. It is being largely consumed for steam purposes, and Is being to some extent used in some localities for domestic consumption. These facts surely furnish proof that it only requires energy and capital to make the coalfields of New Zealand a valuable source of wealth to the colony. But unfortunately there are those amongst us who are never satisfied to let well alone. During the late session a strong effort was made to induce the Government to propose a protective duty on the imported article. The usual argument were employed in favor of the proposal. It was urged that the import of coal. amounted to L 250,000 per annum, and members were reminded that if they assisted to develop the coal trade of New Zealand in the manner suggested that they would give employment to a to a large number of men. If there were an import duty upon coal, it was maintained, and some protection afforded against the importers from New South Wales, they could employ on the West Coast some for or five hundred men more than were now engaged. Then there would be the additional people employed in the shipping trade, the managers, agents, &0., who would bring up the total to one thousand able-bodied bread winners, representing several thousands of a population depending upon their exertions. Those and other arguments of a like nature were brought forward to induce members to approve of an import duty with the object of fostering local production. Fortunately the mover of the resolution had not an opportunity of coming to a division on his motion, and nothing was done. The Tariff Committee had previously gone into the question at some length, and had reported against an import duty, but had recommended that the port dues at coal ports, as well as railage charges on coals, should be reduced to the lowest possible point. It has also been suggested that steam tugs should be employed at Greymouth, and |that if such were done Grey coal could compete successfully with Newcastle without the aid of a duty at all. The evidence taken before the Committee, moreover, made it quite plain that at an early date there would be a large exportation of coal, probably from other places than Greymouth, to the various ports on the East Coast without the assistance sought for. It was urged on behalf of the producers that there is a combination among the coal importers in the large centres of population. They had fleets of ships, it was said, specially adapted for the Newcastle trade, and they exercised such a large influence as practically to enjoy a monopoly of the business. There may be some foundation for such a statement. On the other hand,it is an undoubted fact that Greymouth coal is being largely used in spite of such combinations, if they really exist. Even in this city it can be obtained at practically the same price as the imported article. It is plain, therefore, that the law of supply and demand is asserting itself. If, under the adverse circumstances under which the coal on the West Coast is produced at present, it is coming into use, in the face of the opposition of those interested in the Newcastle coal trade, it is evident that no assistance in the shape of an import duty is needed. We are opposed to protection in any shape. It must always impoverish a country and cripple its commerce. But in the case under consideration its folly is especially apparent. Here we have an industry which is rapidly developing without any such aid, and which, if left alone, will soon reach large proportions. Why then seek to interfere with it ? If the Greymouth coal is superior, as we believe it to be, to Newcastle for many purposes, it will come into use in spite of opposition. But if a duty is imposed a material injury will be done to every household in New Zealand. A prohibitive duty on foreign coal would be a serious matter to thousands of families, for it would (destroy competition, and consequently raise the price enormously to the unfortunate consumer. In these circumstances, therefore, it is to be hoped that we shall hear no more about a protective duty. Every day is demonstrating the fact that its imposition would be an altogether uncalled for interference with the comfort and convenience of the people of the colony. At the price at which Greymouth coal can even now be landed on the East Coast it will, if its superiority is once clearly established, drive the Australian article out of the market,

and by degrees those interested in that trade will be forced to turn their attention to the West Coast. When that time arrives we may hope to see, not hundreds, but thousands profitably engaged in the industry. But the great difference will be that their labor will be remunerative to themselves, and will have cost the colony nothing. A protective duty on the other hand means a serious tax upon the consumer from one end of New Zealand to the other, for the sole benefit of the coal mine owners and a few of their employers.