BRITISH COAL CUTS

Press, Volume LXXXIII, Issue 25090, 23 January 1947, Page 6

BRITISH COAL CUTS

EFFECT ON STEEL OUTPUT SHIPBUILDING FIRMS INVOLVED (Special Correspondent N.Z.P.A.) LONDON, January 21. The Ministry of Fuel and Power states that it is hoped that the 25 per cent, reduction in coal allocations to certain industries will not continue for more than six or eight weeks, although it is pointed out that any increase in coal production is dependent largely oh the weather. One hopeful note is a report from Edinburgh that the output of Scottish pits has increased by 78,000 tons during the first fortnight of the present month and a similar increase is expected in the third week. It is claimed that the reduced coal allocation to the steel industry should not reduce the total output for the year by more than 400,000 tons. This, admittedly, is a set-back to the hopes of many steel-using industries, but Government spokesmen claim that the leaders of industry are exaggerating the probable effects. On the other hand, Clyde shipbuilding firms which have record overseas orders are pointing out that the penalties for delay are being sharply increased, and that they cannot face these for any length of time if short steel deliveries interfere with delivery rates. The Argentine Government recently insisted that the penalty for the delay on four ships recently ordered on the Clyde should be fixed at more than £lBO daily. A number of Lanarkshire steelworks have decided to operate an immediate four-day week because of cuts. Most of the spinning and weaving firms in Lancashire are still without reserves, and the fear is that the allocations will be insufficient to prevent stoppages. Ministry officials indicated that as soon as the domestic fuel consumption decreases with the approach of spring supplies will be diverted to rationed industries.