State Coal Mines.

Press, Volume LXVI, Issue 20021, 1 September 1930, Page 10

State Coal Mines.

The annual report on the working of the State Coal Mines for the past financial year, presented to Parliament late last week, contained some interesting information on the operations of the State} Coal Mines Department. They are at present confined to the Liverpool and James collieries on the West Coast, together with trading depots at Wellington, Christchurch, andWanganui. The Liverpool colliery -increased its output from 122,340 tons (in 1928-29) to 138,864 tons of marketable coal, and the James colliery from 36,614 tons to 44,240 tons; but the former colliery returned a net loss of £1866, and the latter a net profit of £3103. There was a substantial increase in the number of days worked during the year at both mines, with an increase also in the average daily earnings of the hewers, the increase at the James mine being 2s Id, and at the Liverpool mine 3d. The daily average was thu3 increased to £1 5s 8d and £1 8s 7d respectively, although the average daily output fell by 4cwt in the Liverpool mine and advanced by over 13cwt in the James mine. The report does, not mention the destinations of the coal produced from the State mines. Last year the depots took 48,000 tons, the Railways. 20,000 tons, other Government Departments 6000, tons, the shipping companies 17,000 tons,- the gas companies 57,000 tons, and other consumers 11,000 tons; but all the information given this time is that 92,000 tons were shipped from Greymouth and 32,000 tons railed to Canterbury, the remainder of the year's output being used locally or in stock. The trading depots at Wellington and Christchurch each returned a substantial profit and the depot at Wanganui a small loss. The accounts show that nearly £90,000 has been spent in acquiring and developing tin Mac Donald mine, not yet opened, although the Audit Office believes that development was sufficiently advanced some years ago and that for this reason interest on capital expenditure on the unopened colliery should be charged to General Profit and Loss Account instead of being capitalised, as it has been. The record of State coal mining in New Zealand has not been untroubled, and some fairly heavy losses have been made from time to time on enterprises which did not live up to expectations. The capital expenditure to date on all undertakings amounts to £655,000, of which £404,000 has been written off. At present the mines are carrying a loan liability of £157,000, and there exists a general reserve of £174,000. So'far as the

future is concerned, much will depend upon how the present mines respond to further development, and the report contains more than a hint that a large portion of the Liverpool mine is already «early exhausted.