STATE COAL MINES.

Auckland Star, Volume LXIII, Issue 263, 5 November 1932, Page 7

STATE COAL MINES.

MINISTER REPLIES TO

STATEMENT.

LOSSES NOT MADE GOOD BY STATE

(By Telegraph—Press Association.)

WELLINGTON, Friday.

A denial of a statement made by Mr. W. D. Holgate, president of the New Zealand Coal Mine Owners'. Association, was made by the Minister of Mines, the Hon.' C. E. Macmillan, to-day. Mr. Holgate was alleged to have said that it was doubtful whether, throughout the entire period of their operation, the State mines had been reasonably successful from a commercial point of view, and that they were highly competitive, and as the losses and deficiencies had to be made up by the State, competition with privately-owned concerns was unequal. . .

The Minister said the published accounts of the State coal mines for the year 1931-32 revealed that for the year ended March 31, 1932, after allowing for interest on capital and depreciation, the Liverpool colliery and the James colliery made profits of £1789 and £2027 respectively, and the profit on the whole business for the year was £16,032, of-which £7885 was paid to tsie Sinking Fund Account for redemption of loan capital.

Since the inception of the Sta+"-coal mines in 1903, the net profits made by the whole undertakings to March 31, 1932, had been £145,293, and this after providing for interest and depreciation, of which £79,704 had been paid into the Sinking Fund Account, which, with the interest thereon, had been used to redeem the loans raised by the Government for State coal mines purposes.

'■ The general reserve at March 31, 1932, was £134,157, so that it would be seen that there had been no losses to be made good by the State, and the chance of the. State having to do so was very remote.