SHOULD WE TAX IMPORTED COAL?

New Zealand Times, Volume XXXIV, Issue 5817, 20 November 1879, Page 3

SHOULD WE TAX IMPORTED COAL?

TO THE EDITOR OF THE NEW ZEALAND TIMES. Sib, —Now that our Colonial Treasurer is at his wits’ end to discover the best means of increasing taxation without placing too heavy burthens on the people, I think the time has come when we might safely assist the exchequer by a duty on imported coal. I notice this question has been before the legislature for the past year or two, and just now the Dunedin Chamber of Commerce have had the subject under consideration, and from the manner in which the various speakers have dealt with it, they appear to doubt that we are independent of foreign importation, and that a duty would necessarily increase the cost to the consumer. That we are entirely independent of foreign importation of coal I need but refer you to the published report from the Mines Department for XB7B,!laid before Parliament, which shows our local production was upwards of 160,000 tons of coal for tlmb year, and the total foreign importation for the same period was about 170,000 _ tons. Now, of the thirty coal mines in operation in the colony it may safely be said there is not one of them that could not double their output, and I am assured there are several of them that could do ten times as much if there were purchasers. And as regards the increased cost to the consumers, if such did result, which I do not admit, can we not say the same of all or nearly all the necessaries of life on which duty is levied. Tea, sugar, clothing, wines and spirits, tobacco, &0., would be all cheaper if we could afford to admit them duty free ; and as no colonist can ask for their admission free in oui present embarrassed condition, I fail to see why coal imported should not be made to contribute to the burthens of the State as well as the articles enumerated. On the contrary, I see very cogent reasons why it should so contribute. We have in this colony a vast amount of wealth, both public and private, employed towards the development of our coalfields, and what is the result to the Government and the proprietors of those coal mines ? Why, as a rule the railways constructed by the State for their development are lying dormant, whilst many of the coal companies are bankrupt or their shares unsaleable at 50 per cent, discount. What is the remedy for this deplorable condition of our coalfields? Let our Government, instead of listening to interested statements of our inability to supply ourselves, and probable increased prices, do as the Victorian Government do, by imposing a duty on our cereals for the benefit of their farmers, and as New South Wales do, by imposing a duty on our hams and bacon, for the protection of her farmers. I will be told that whatever duty we impose on imported coal that Newcastle coal will continue to be imported, as there is no coal in the colony to take jits place. If so, then the Treasury benefits by the duty. As to there being no coal equal to Newcastle in the colony, it is well known that there is an inexhaustible sunply at Greymouth and Westport equal for all purposes, and vastly superior for many purposes, to the best New South Wales coal. Now, as to the certainty of supply and cost to the consumer, I am assured on the most credible authority the market only is wanting. The three coal mines now in full operation at Greymouth are capable of delivering upwards of 1000 tons daily, and at Westport one mine is now ready to send coal to market, and in a few mouths another will also be completed. Their combined capability will equal the Greymouth mines as regards output. But the market is the great difficulty,. Not only must the coal be of superior quality to the imported article, but it must be sold much cheaper to make headway. Consumers are so accustomed to Newcastle coal they will ask for it, and the coal dealers, most of whom drive a lucrative trade by importing coal, have large fleets of colliers which would be comparatively valueless if Newcastle coal was superseded by the use of native coal. Consequently coal importers and their friends do not encourage the use of native coal, but, on the contrary, do all in their power to create and foster a prejudice against it. As to the price of Greymouth or Westport coal compared with Newcastle, I am informed it can be delivered alongside our wharves at about 28s to SOsper ton. But to make that sure, the mine owners must be relieved from a ruinous competition which they are now subject to, and which prevents them from being able to enter into time charters with suitable vessels for the trade ; and with coal delivered at our wharves for 28sto30sperton, is there any reason to apprehend that consumers would be called on to pay a higher rate than is now charged I None whatever. Apart from the colonial aspect of the question, I would also remind you that it is not alone the coal owners that would be benefited, but also that numerous and important class of small vessels in the colony (150 tons and under) that are now lying idle in our harbor, for want of profitable employment. If the coal trade was freed from foreign competitions all.these vessels would find employment, and so wo would promote our national prosperity in a greater degree than can be done by taxing any other commodity imported. Trusting yon- will find space for this letter in your valuable paper, and that more able hands will deal more comprehensively with this important subject,—-I am, &c., Taxfjltzb.