N.Z. COAL PRICES

Sun (Auckland), Volume IV, Issue 1063, 29 August 1930, Page 8

N.Z. COAL PRICES

REDUCTION TO NEWCASTLE LEVEL RAILWAY’S REQUEST THE SUN'S Parliamentary Reporter PARLIAMENT BLDGS., Thurs A promise to investigate the possible effect upon the coal mines and worker* if the request of the Railway Department that some of the West Coast mines should reduce their coal Priccs to Newcastle parity was made by the Minister of Railways, the Hon. w. a Veitch, during the Imprest Supply Bin debate in the House this evening. Tho question was brought up by thLeader of the Labojir Party, Mr. H £ Holland, who said that some time ago the Railway Department had advised some mines on the West Coast of the South Island that they must brine down prices to Newcastle paritwhich could mean one thing only—reduction in wages for the miners. a* agreement had recently been made between the owners and miners for standard wages, but the only way in whic this could be done was to maintai: the present level of prices. If the Railway Department wanted a redin'tion other customers would desire the same thing. Mr. Holland did not think it was the fault of the Minister but of the Railway Department, which seemed to be wasting the mines. The Railway Department was also reducing its orders :to the mines. Westport Ftockton j orders had been reduced from l,3f*i ’ tons a week to 300, which had necesei- | tated the closing of the mine through lack of orders, meaning that about 2W men would be temporarily idle. The aim was to reduce railway stocks, bu: it seemed common-sense to have good stocks on hand. CRISIS POSSIBLE Both the Railway Department and the country threatened to become panicky, and if this state of affairs continued there would be an economic crisis. Newcastle prices, said Mr. Hollaed, had been lowered because of lover wages and State concessions. With its large output Newcastle could undersell New Zealand. If the policy o( the Railway Department were insirted on it would mean disaster to the mineowners and miners of New Zealand, with hundreds put on the unemployed list. Surely the Government would not drag down wages in New Zealand, air. Holland thought the Westporr ratine the only West Coast one tha* could carry on with a loss for any period. Mr. C. G. Black (United —Motueka) supported Mr. Holland and deplored the practice of paying royalties for the supply of cheap coal to the railways. The Minister promised to investigate the questions raised. He would not willingly interfere with the conditions of the miners. Regarding : . 'Stockton mine, said the Minister, the Government had. in the time of the industrial trouble in Australia, had to import large quantities of inferior Queensland coal. It also bought all the New Zealand coal it could get. However, the Railway Department had to divert some New Zealand coal, as gas and other companies had to be supplied. Therefore it imported from Queensland and now had big stocks which were deteriorating rapidly ar,<l costing a good deal of money. When the stocks had been used up to a certain extent New Zealand orders would b© placed again. Of course, a reduction in railway business meant a reduction in the quantity of coal us£,d.