RAILWAYS ENCOURAGE N.Z. COAL INDUSTRY

Sun (Auckland), Volume II, Issue 457, 12 September 1928, Page 14

RAILWAYS ENCOURAGE N.Z. COAL INDUSTRY

CONSUMPTION TREBLED CONTRACT FOR WAIKATO (THE SUN’S Parliamentary Reporter) WELLINGTON, To-day. New Zealand coals are being used on the railways to the limit of practical consumption, and the Government is encouraging, under the promise of contract, a newly established industry of carbonising coals from North Island mines. The percentage of New Zealand coal used on the railways has been trebled since 1924. In his statement presented to Parliament yesterday, the Minister of Railways, the Rt. Hon. J. G. Coates, said it is the policy of the Government to use on the railways as large a proportion of New Zealand coal as is warranted by the general economics of the fuel situation.

The Minister gives a reminder, however, that Welsh coal can be landed in the Dominion at a price equal to that paid for the best New Zealand coal. With definite knowledge of the high qualities of the Welsh product, and its suitability to New Zealand’s requirements, it is clear that consideration must be given to the alternative of importing. At the present time the department is buying all the bituminous (hard) coal it can procure from New Zealand mines, in addition to the maximum quantity of soft coal it can burn. Waikato coals are being used to the limit of practicable consumption. Regarding the scientific treatment of coal and lignite by distillation, and the possibilities presented by carbonisation of New Zealand brown coal, the department has collaborated in research and procured full information, of which mining interests in the Waixato have been acquainted.

As an indication of the practical encouragement given by the Government to the establishment of z\ carbonising plant, an offer has been made to let a contract for the supply of all railway coal requirements in the middle North Island district, should the industry be established.