The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo. FRIDAY, MARCH 12, 1926. A PROBLEM UNSOLVED.

Auckland Star, Volume LVII, Issue 60, 12 March 1926, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo.

FRIDAY, MARCH 12, 1926. A PROBLEM UNSOLVED.

For the eattss that lacks assistance, For tie tetany that needs resistance, For tie future i» the distance, And the gaod that tee can do.

Britain's? whole national economy rests upon the coal mining industry, and any disorganisation oi that industry has ita immediate reflex upon every seetion of j the community. Last July a national stoppage was threatened, and to avert a national calamity an armistice was arranged under which the Consolidated i Fund paid a subsidy to the mining j industry sufficient to keep wages upon j a living , basis. That subsidy was esti-* mated to cost ten millions in the nine months of its operation. It had exceeded that sum before half the period tad expired, and it is probable that the final j bill by Hay 1 next, when the provision j ceases to function, will be 'well over twenty millions. The subsidy merely deferred the issue, and gave an opportunity for the Coal Commission, which has now presented ita report, to consider a solution of the gravest problem which has faced. Britain since the war. j The report ia one of dominant authority, j but it is not a new revelation. That could scarcely be anticipated in view of the inquiries which have been held over a long series of years, and of the continuous struggles and discussions j between the rival parties. There are j some problems which cannot be definitely solved, however exhaustive the discussion, and perhaps the coal crisis—for it again approaches the critical stage—is one of these. The Commission received little help from the rival parties. They joined issue in January, each presenting its ideas of the only possible solution. Naturally a great gulf was fixed between the two, and no signs of a bridge across that gulf appeared before the end of the taking of evidence. Both I schemes were doetrinnaire, and neither ' side was , disposed to reveal that broad j spirit of tolerance which alone would j promise a successful exit from the I impasse. On the whole, the miners' : representatives came out better than j did the owners. The claim of the pro- i 1 prietary interests was that the only j method by which costs could be reduced i J was by a return to the eight-hour day, j that there should be no increase in j wages for the longer hours, that j [transport rates should be reduced by 'twenty-five per cent by a cut in the j Tailwaymen's wages, and that they (the 'ewners) should contrive to reduce their costs by ten per cent. They also suggested cuts in wages in certain areas 'with a view to export at a lower price, and district regulation of wages in place of the national agreement. These proposals were hopelessly unacceptable and inadequate and showed that the owners were completely out of touch with the real necessities of the situation, and with public and political feeling. The miners' plan was more elaborate. Its central idea was that the mining industry could not be treated purely as a coal getting industry, but j must be linked up with a national scheme of electric power generation and the complete utilisation of the byproducts of coal. It advocated State acquisition of the coalfields and the industrial plant, the pooling of wagons, and the distribution by the leeal authorities to the consumer. Elaborate commissions and councils to direct the industry were proposed, together with the national ownership of the transformed industry, and that capital for coal development should be raised by a Government loan. It was proposed | to buy out the owners on a compensation system which depended upon future profits of the industry, and which, in 5 the opinion of the coalowners, would j amount to absolute confiscation. Xot J a shilling less and not a minute more j summarised the miners' attitude regarding wages and hours. The Commissioners have rejected the niain contentions of both parties and have presented a report which suggests the revision of the industry on lines of compromise. Rightly they condemn the subsidy, which was never regarded as other than a temporary expedient, but the great weakness of their finding ia. the failure to suggest any modus vivendi which will keep the pits at work when the armistice ends. It is obviously impossible to drop it and put nothing in its place. Even if the whole finding proved workable* and acceptable to Cabinet, a long time would elapse before it had the force of law. A Bif* would have to be prepared, and its discussion in the inner councils would be long and difficult, while even before Parliament weeks of discussion would be involved. After its passage months must elapse before its provisions became effective. How, then, is it possible to take off the subsidy in six weeks? Clearly it is impossible, and it is a practical certainty that renewal in seme form will prove inevitable if "a struggle which will almost bankrupt the nation is to be avoided. Apart from this, the report is . likely to prove extremely valuable in improving the I wageTpaying capacity of the mince. The I suggestion of Stat* ownership of j minerals is drawn from the Liberal scheme of 1924, as was also the suggestion of amalgamation of leases. The owners were very determined against amalgamation, despite the success which had attended many enc> efforts in the; South "Wales coalfield- Under the new

report they will be compelled to combine within certain areas, and this compulsion will find few opponents. It is certain that some of the lesa efficient mines will have to close down—many have already done so even under the subsidy. The transfer and housing of the displaced men is suggested as a Government duty, and housing schemes are to be regarded as an essential of all new leases. Altogether the proposals contain much that is business-like and practical, and provided the immediate problem of May 1 be successfully overcome something resembling stability in the foundation of Britain's economic order may be anticipated.