COAL INDUSTRY

Manawatu Standard, Volume LVIII, Issue 45, 21 January 1938, Page 9

COAL INDUSTRY

BURDEN OF COSTS. TOO MUCH IMPORTATION. Per Press Association. - WELLINGTON, Jan. 20. Dealing with the importation of coal into New Zealand, Mr C. C- Davis, the president of the Coal Mine Owners’ Association, at the annual meeting of that body, stressed that too much coal was imported. There had been no diminution over the past five or six year?; in fact, the 1936 figures were the highest for five years at 111,078 tons. With the coal resources New Zealand possessed, it was entirely wrong that even this quantity should find its way to the New Zealand markets from overseas. With the higher wages, shorter hours, and costly conditions which the industry had to bear in this country some measure of protection should be provided to enable this considerable tonnage being provided from New Zealand’s own mines, said Mr Davis. The little extra distance from Newcastle afforded no protection, for the transport costs from the West Coast to, say, Auckland, were just ns high or higher. Referring to the improved trading conditions in 1937, some of which were reflected in the coal industry, he said that unfortunately the evermounting cost of mining and—to an almost equal extent —the cost of transport necessitated higher prices for coal, and for this reason much of the benefit of the returning prosperity had found its way to the competitive sources of heat and power rather than the coal industry. The existing mines in New Zealand were fully equipped and capable of supplying New Zealand’s. full requirements, and it was therefore very obvious that the opening of any further mines was unnecessr,ry and would only add to the difficulties of the existing companies without affording benefit to anyone. The miners were now earning good wages, and when the time came for the renewal of their agreement it was hoped the miners’ organisation would recognise the impossibility of loading further costs on to the owners, which would only jeopardise the industry that had found them employment.