THE COAL SITUATION AT HOME.

Manawatu Herald, Volume XLVIII, Issue 3033, 8 May 1926, Page 4

THE COAL SITUATION AT HOME.

NOT POLITICAL BUT ECONOMIC.

The very serious crisis which has arisen in connection with the Coal Industry of Great Britain forces to the front the economic truth that it is the industry which pays the wages, not the employers. Sympathy with the miners was expressed by the New Zealand Socialists on May Day. We add to that real sympathy with the entire British people at Home, they are all affected.' It is said “the miners are fighting to maintain their standard of living.” What would give more assurance would be positive evidence that all are fighting to maintain the industry on which the standard of living rests. If the industry goes smash the living of thousands must go with it. What will stand to the credit of the Prime Minister is that throughout the very trying negotiations which have taken place he has ignored politics and endeavoured to find some settlement on business principle which takes congnisance of the economic facts. On the other hand the communists attached to the Minority Movement,, and Socialists of the Independent Labour Party, have made the issue one of politics—and party—right throughout. This factor within the Nation must have due consideration when it is remembered how great was the power of these Reds at the last British Trade Union Congress. It is the same liades Union Congress which the Miners Federation is now relying on to carry them through their trouble. Remembering how disturbed the Labour Party politicians (Mr. J. Ramsay MacDonald included) were over the Red militancy displayed by the last annual gathering ol this Congress it is to be feared that rash action may l>e taken when steadiness above all things is required in the Nation’s interest. At this stage it is regrettable to find Mr. MacDonald raising the party political cry in the way that he has done. The political affirmations that “the Government has decided to fight the people’s standard of living” and that the Government broke off the negotiations (which is not correct) presents this leader in the very bad light of seeking to make party capital out of his country’s distress. The first fact of this coal crisis is where the industry has got to, a purely economic question. MINERS’ DEPARTMENT REPORT. “The Statistical Summary of the September quarter of 1925 issued by the Mines Department includes in the period with which it deals the first two months in which the Government subventon was . payable. The outstanding feature of the Summary, which completely confirms the owners’ contentions as to the economic condition of industry, is that, with the exception of the Eastern Federated Area and Somerset, every district in the country showed a loss, even with the aid of the Government subsidy. The “debit” ranges from 1/5.73(1. per ton in Cumberland to 2.40 d. in Kent, while the figure for the whole country shows a loss of 2.82 d. per ton commercially disposable. And it must be remembered that these trading losses of “debits” do not re present the full measure of the burden that the colliery owners are called upon to carry, since further charges, averaging about 3d per ton, must be added for a variety of items, constituting necessary working expenses, that are not chargeable as “costs other than wages.” Net costs, after the deduction of the subvention of l/4.07d. per ton, are IG/7.57d per ton, as compared with 18/4:1 d per ton in the Juno quarter of 1925, and with 19/1.57d. in the September quarter of 1924, but whereas the proceeds of commercial disposals were 19/1.87d

per ton in the September quarter 1924, and 17/5.03(1 in the June quai'ter of 1925, they had fallen to 16/4.75d in the September quarter.” THE SUM TOTAL. Shortly stated, the position arrived at in connection with Britain’s Coal Industry is that it cannot pay its way on the present working. The Miners’ Federation, and Trades Union Congress, ask for re-organisation of the industry and demand that until re-organisa-tion brings increased prosperity the present wages, seven hours a day and other conditions be maintained. Briefly, they require that more shall come out of the Industrial Reservoir than is running into it. This is an economic impossbility and it cannot be met by Mr. Cook, the Miners’ secretary, reciting the slogan “Not a cent off the Pay, not a second on the day.” The political minded labourites, socialists and communists : may think industry can be run on bearings of what should be. The same bearings get overheated in the process, and even with the oil of a State subvention Britain’s present experience is that the engine won’t go. Of course, the miners should have their present wage or better, but if the industry can’t give it then it is sure the employers cannot, for they are not getting it to give. The sooner these hard economic facts are faced the quicker will a remedy be found. It perhaps needed a drastic lesson to teach the most simple economic truth that neither employers nor employed can get more out of an industry than what is in it. (Contributed by the New Zealand Welfare League).