COAL PURCHASES.

Press, Volume LXVI, Issue 20024, 4 September 1930, Page 19

COAL PURCHASES.

RAILWAY DEPARTMENT'S POLICY. QUESTIONS IN THE HOUSE. [THE PRESS Special Service.] WELLINGTON, September 8. Information concerning the supposed importation of large quantities of coal for the railways was sought from . the Minister for Railways, the Hon. W. A. Veitch, by Mr J. O'Brien (Lab., Westland) in the House to-day. In an urgent question without notice Mr O'Brien asked the Minister whether he was aware that a large amount of coal had been brought into the country for use on the railways. He said he understood that between 40,000 and 50,000 tons had been brought into the country for that purpose within the past four or five months. The Minister said that although he had not had a chance of enquiring into the question, he was able to say that he had no knowledge of large quantities having been imported. He promised to look into the matter, and to give the information to Mr O'Brien privately, and to make it public if he wished.

Mr J. S. Fletcher (Ind., Grey Lynn) also asked the Minister whether he would refer the contract entered into by the Railway Department- and the Taupiri Coal Company, Ltd., to the Railway Committee for consideration and report, with power to call for persons and papers, and an instruction to report in 14 days. "In view of the negotiations at present taking place, it is not in the public interest that information should be given at present," replied the Minister. "Why?" asked Mr Fletcher, but his query was unanswered. Later, Mr W. J. Broadfoot (U., Waitomo) asked the Acting-Prime Minister, the Hon. E. A. Ransom, the following question: "Ab the Government recently entered into a contract with the Waikato coal owners for the supply of a large quantity of coal to the Railway Department, and as a definite and positive move toward the solving of the unemployment problem, will the ActingPrime Minister arrange for the Department to offer a contract for the supply of smokeless fuel in the Ohai Valley district f If such contract is offered, the capital is available to establish low temperature distillation works in that district. This means the introduction of much-needed overseas capital to the Dominion, sound economic help to the coal industry, more employment, a huge annual saving in fuel to the Department, and better working conditions to the drivers and firemen on locomotives."

Mr Ransom's reply was as follows: "The Railway Department entered into a contract for tho supply of coal in the Waikato because it was advantageous to the Department to do so in the particular circumstances as they existed in connexion with that transaction. If any other fuel producing concern has fuel to offer, the Department will consider the circumstances and decide whether it will enter into a contract or purchase in the open market. Those who have been concerned with the proposal for the establishment of carbonising works in Southland have already been informed that the Railway Department will be pleased to consider the purchase of carbonißed fuel when the commodity is available for use by the Department. However, I propose to look further into the matter." Mr Broadfoot: Don't you want more capital ?