C.—2.

CO-OPERATIVE MINING, STATE COAL RESERVE. Nineteen co-operative parties working portions of the State Coal Reserve near Greymouth produced, during the year 1937, 109,052 tons, the number of men employed being 182. During the previous year twenty parties produced 101,619 tons, there being an increase this year of 7,433 tons. The institution of the co-operative mining ventures on the State Coal Reserve has been a most successful experiment, and has been of great value to the State. Up to the end of 1937 these parties have produced a grand total of 1,233,230 tons of coal, and have in the same period paid royalties to the State amounting to £58,975. A number of small isolated blocks of coal have been worked which could not have been profitably mined by a major organization, and if the co-operative system had not been developed much of this coal would probably have been left unmined for all time. STATE COAL-MINES. The outputs from both the Liverpool Colliery and the James Colliery showed increases for the year. The net profit for the year ended 31st March, 1938, after making provision for interest and depreciation, amounted to £13,168, a decrease of £1,390 compared with the previous year. A sum of £9,524 was transferred to the sinking fund, leaving a net surplus for the year of £3,644. A vigorous sales policy was carried out by the Department during the year. A thorough canvass of consuming units was made and a well-planned advertising campaign conducted. The results were entirely satisfactory, and business has been well maintained. The Liverpool Colliery worked 200 days 3 hours during the year, an increase of 6 days 3 hours compared with the previous year. At the James Colliery work was carried out on 240 days, an increase of ll\ days compared with the previous year. The following increases in wages have been grated to employees since 1936 :— (1) Ist July, 1936 : Restoration of Wages to the 1931 rates in force prior to the operation of the cuts. (2) 14th September, 1936 : Ten-per-cent. increase to all day-wage men, to compensate for the forty-hour week. (3) 27th March, 1937 : Five-per-cent. increase for all day-wage employees and youths and Is. per shift increase for shiftmen, truckers, and adult screen workers. (4) A maximum of ten days holiday on full pay in 1938 to all employees. This is equivalent to a further increase of approximately 5 per cent, in wages. In addition to the above, increases have been made in the wages of other weekly workers and mine officials, such as underviewers and firemen-deputies. Output and Sales. Liverpool Colliery.—The gross output for the year was 137,806 tons, as compared with 132,966 tons for the previous year, an increase of 4,840 tons. James Colliery.—The gross output for the year was 42,608 tons, as compared with 40,690 tons fop the previous year, an increase of 1,918 tons. A comparative statement for the two years is shown hereunder : —

Note.—The difference between the gross and the net output is the allowance for mine consumption and waste. In addition to the above, 1,378 tons of coal was purchased for resale, of which 976 tons was purchased from co-operative parties on the West Coast.

8

Output, in Tons, 1937-38. jj Output, in Tons, 1936-37. Mine. Gross. I Net. I Gross. Net. Liverpool .. .. 137,806 132,144 132,966 126,810 James .. .. 42,608 j 41,099 40,690 39,044