COAL FOR POWER.

Auckland Star, Volume LXI, Issue 192, 15 August 1930, Page 5

COAL FOR POWER.

THE GLEN AFTON CONTRACT. SUPPLIES FOR DAIRY FACTORIES. ! j . ..i ii THE PSICE OP SLACK GOAL. Mr. George Pollock, secretary of Pukemiro Collieries, Ltd., writes: — Dear Sir, —la Mr. Goodfelkrars statement to the "Auckland Star" regarding the leasing of the Mac Donald mine- to Glen Afton Collieries, Ltd- there are one or two points which are misleading. Mr. Goodfellow states that- the Glen Alton Colliery waa developed for the express purpose of providing cheap and adequate supplies of coal for the company's dairy factories at a period when adequate coal for its requirements were difSclut to obtain, and that the extensive leasehold and freehold areas were i originally estimated to provide coal for j the dairy industry of the South Auckland Province for a period of from 70 to SO years. Had the Glen Afton Collieries confined its operations to- the express purpose for which it was developed. Mr. Goodfellow would have been relieved of his anxiety regarding adequate supplies' for the dairy factories. It i≤ only a few months ago that Mr. PJeh white, a director of Glen Afton Collieries, when delivering an address to the Botary Club on the coal mining industry, stated that at present there were too many coal mines operating in [the Waikato, resulting in an overproduction, and in consequence the ainers at some of the collieries were averaging two aisd a half days' work per week, yet on the face of this statement Mr. Goodfellow leases" another coalfield for 40 years, which, .will tend to make tie position more acute. It is stated that negotiations for the purchase or lease of tq£ MaeDonald I pi-operty weTe commenced with the Reform Government. That being the case, why t'ae secrecy observed in conneciion with the finality of negotiations ? Mr. Goodfellow .stresses the point that Glen Afton Collieries qnoted the Power Board_ a low price for crushed coal and slack, yet on previous occasions when any suggestion was made with regard' jto the reduction in the price of slack I coal to freezing works and other indusj trial concerns, Glen Afton Collieries strenuously opposed it. Their objection to a reduction in price was not only confined to slack coal, which is borne out by the fact that when my company notified a reduction in the price of kitchen coal and throu°-h coal a≤ from July 1, 1930. Mr. Goodfellow was one of a partv who, on July 1. 1330, issued a threat to combine against us in order to combat -what they termed a. cut in prices. As stated by me in a previous letter, the reduction made by us brought the price of through coal much below the Glen Aftoa quote to the Power Board, and was in operation some two or three weeks prior to the contract -with the Power Board being signed. In Mr. Goodfellow-'s reference- to royalty, he states that the amount payable by Glen Afton Collieries to the Government, viz., Sd per ton, was 2d per ton more than the average priee paid by any other Waikato collierv {other than Eenown). This statement is incorrect, as my company pays from 7£d to Sid per ton royalty. Mr. Goodiejlow also maintains that Glen Afton Collieries pay income tax. However, there are no disclosures in their balance-sheet showing where income- tax has been paid, or even provision made for income fax. Can Mr. Goodfellow explain -wi%nres are 'aot made available? Yours faithfully, G. POLLOCK, Secretary.