The Press TUESDAY. NOVEMBER 16, 1937. The Mines Statement

Press, Volume LXXIII, Issue 22251, 16 November 1937, Page 8

The Press TUESDAY. NOVEMBER 16, 1937. The Mines Statement

The regret expressed by the Minister for Mines, the Hon. P. C. Webb, in the Mines Statement tabled yesterday, that most of the advantage from increased coal production in New Zealand in 1930 went to the importer rather than to the Dominion's own mines has been shared for a long time by mineowncrs and miners alike. Actually, the amount oi' coal imported from Australia last year was the highest in five years. But the only suggestion the Minister made in his statement for checking this importation of coal was a "sincere "hope that the gas companies, which are the

principal consumers of imported coal, will do

•• their utmost to help local industry." Although the Minister suggested no real remedy, he had little difficulty in pointing to the mam cause of higher imports. "The increased costs of • producing New Zealand coal brought about

as a result of increased wages and bette

" conditions introduced by the Government," he stated, " have no doubt been partly respon- " sible for the situation." He might have added that in some degree the coal industry is providing an economic parallel to the present position of the boot trade: high wages in New Zealand mean higher costs, and buyers prefer to import rather than pay the increased prices. Of course, the percentage of coal imported to coal mined in the Dominion is not very high (111,078 tons were imported compared with 2,140,217 mined in this, country in 193'J) but the position is nevertheless disquieting. In one respect the Minister's statement was obscure. He made no mention of the exercise of any powers to restrict coal imports, and yet in July of this year was warning West Coast miners that unless they extended full co-opera-tion in the task of meeting New Zealand's coal requirements, he would have to agree to increased importations, tacitly indicating by this that such importations were under State control. If they are, and it has been suggested that the Department of Industries and Commerce has some influence in the matter, it is strange that the Minister did not mention the fact, instead of merely regretting the position. It will be interesting to see what importations of coal are being made in 1937, when the effect of higher costs upon the Dominion's collieries under new agreements between miners and employers will be felt more keenly. The plain fact of the matter is that many of the gas companies prefer Australian coal, and their preference has suited the convenience of shipping companies desiring back-loading for vessels taking cargo from New Zealand to Australia. But when imports increase by 14 per cent, and local production by a little more than 1 per cent, in a year admittedly brighter in the coal trade than its several immediate predecessors, too much optimism, about the Dominion's mining industry does not seem justified. The report does not, of course, cover any part of this year, and it is known that strenuous efforts have been made to increase the amount of coal produced in New Zealand mines in the last few months. The outcome will not be revealed in full until the next Mines Statement is issued. Time and production lost through labour disputes in New Zealand mines are not mentioned by Mr Webb, but it is obvious from messages from mining centres all over the country at various times within the present year that they are an important factor both in mining costs and in hindering the continuity of supply that might make New Zealand coal attractive to those who at present prefer to import. Labour troubles have affected the coal industry more than almost any other industry in the Dominion in the last decade; because of them many thousands of pounds have been spent in hydro-electric plants, some in the heart of mining districts, which would otherwise have gone to buy coal for the generation of power. It is surprising that the factor should be ignored by the Minister, and perhaps unlikely that he will be able to ignore it much longer.