THE COAL SUPPLY.

Auckland Star, Volume LV, Issue 250, 21 October 1924, Page 7

THE COAL SUPPLY.

(To the Editor.) Sir,—l notice that Mr. W. D. Holgate stated at a meeting of the Coal Mine Owners' Association, held In Wellington, that the statements made by four of our Cabinet Ministers (Mr. Guthrie, Hon. J. G. Coates, Hon. G. J. Anderson and the Prime Minister) re the great shortage of coal are incorrect. If Mr. Holgate really thinks this, how can he explain the following paragraph which appeared in the "Herald," dated July 0 last:—"Coal supplies are somewhat limited, barely sullio'ent to keep pace with the demand. Large quantities have been imported for the railways and for steam purposes in general on account of the difficulty en getting sufficient supplies from Westpo.t and the Waikato"? Does Mr. Holgate mean to imply that there would be an importa-> tion of some 700,000 tons of coal annually, when, by using Waikato coal , : f! procurable, an" actual net saving of 20/ per ton could be effected after making all necessary allowance for the lower calorific value of the local fuel? Surely such a supposition is quite .incredible. One Waikato company, on issuing its balance-sheet in September last year, stated: "The output of the mine is _0,000 tons in excess of last year, notwithstanding which the demand for the company's coal is unsatisfied." It is a well-known fact that the quality of the coal produced by the various mines differs considerably, and one company, in addition to having the handicap of a poor quality coal, is bound under contract to supply only through certain firms, and naturally, owing to the difficulty in obtaining it from other sources, outside merchants are forced to import. In conversation with a visitor from Hawke's Bay recently he made the j remark that during the past winter it was impossible to supply the cdemand 1 there for Waikato coal. Doc 3 Mr. Holgate realise that the population of New Zealand , : s increasing at the rate of 25,000 per annum, and that the coal consumption is about 2_ tons per capita, giving an annual increase of coal requirements of over 00,000 tons? This means that cf no coal were imported a new mine would have, to be opened up every three years. The fact is that the demand for coal is increasing so fast that there is very little likelihood of it being satisfied for many years to come, and it certainly would "be impossible to restrict importations until this can be satisfied locally. Mr. Holgate is equally unfortunate in bin remarks about other sources of power, as it has been the experience; of all countries that hn-Vfl large source* of power from hydroclectrlclty that the rate of Increase in conl consumption has been still jrreater. and with regard to oil pow'or tho cost of oil has risen to »ueh prohibitive fljnr<>< that shipbuilders have come to the conclusion that they will have to revert to the use of co«l fuel.—-I am, etc., BLACK DIAMONDS,