BRITISH COAL INDUSTRY

Press, Volume LXXXIV, Issue 25547, 15 July 1948, Page 5

BRITISH COAL INDUSTRY

NATIONAL BOARD’S REPORT FIRST YEAR LOSSES OF £23,255,586 LONDON, July 13. The National Coal Board report mows that the loss on the nationalised coal industry for the first year to December 31, 1947. was £23,255,586. The report states that the deficit is not a charge on the taxpayer. It will oe met from the board’s resources, find must be overtaken in later years. Colliery losses totalled £9,203,905, which is equal to Is a ton compared with a gain of 23d a ton in 1946. Coke ovens and other ancillary undertakings, however, showed a profit of £3,016,605, leaving an operating loss of £6,187,300. Other losses included £1,697,992 on coal imported from America and Poland to guard against finother winter fuel crisis and a deficit of £15,120,279 on interest and interim income. The report adds that if coal is to be Produced cheaply the mines must be reconstructed, btit capital charges will 00 a heavy burden. Schemes prepared for new collieries show that the annual charge for depreciation and interest may be 5s a ton. The board, « it is to meet these charges and produce at competitive world prices, must th® full co-operation of everyone S, the industry. Without this co-oper-»uon the outlook fot the industry and «ose who earn a living from it is weak indeed. The board on capital account spent 19 ’ 000 ’ 000 in 1947. The board’s commitments on the capital account at Xt nd of 1947 totalled £536,000,000. wnich will be expended over a period veiars - & vcilleries incurred losses mainly in e summer. A profit of £1,500,000 * earned from January to April, in vl? °t the fuel crisis. but between •W and August, holidays and the Ca Y week affected the results, and J °sses totalled £9.000,000.

Prices and Wages report says that after the price creases of 4s a ton on September 1, "Profit of £1.000,000 was made in foJr !T, ° er and October. Agreements pj ' ncre ased wages then came into voXJu’ an d there was a loss in November and December of £2.700,000. Ppce of coal was therefore inCeased by 2s 6d a ton. of\ ris , e °f 51.1 d in the average cost of a ton of coal was , c . aus ed by concessions to worka fJu Whlch would cost £32.500,000 in hnS, 1 year - sa ys the report. This, weyer, was no more than the gendi)Jtr mc I ease °f costs in British inert +J y during 1947. Reconstruction the mines should in the long run _uce costs considerably. Jcport notes the prevalence of foOfficial strikes and the disappointtaSre po , n - se t° the anneal for extra tendan Under five-day week. “Atthe coal face and else-cornn.-jll °u?h improved, is still poor War” with attendance before the a wki says. “The mine workers as a nd in however, by a better effort of attendance, produced more ®xc?na»,* oa l *ke country needed, and With Nations were established workers.” . leadin o Manchester Guardian.” in a loss nJ a ££le savs: “The Coal Board’s about fh\J55.586 proves nothing the naH? efficiency or inefficiency of have iH° n ahsed industry. There could if th® ? handsome profit in 1947 had asked and the Govbave allowed. The Board would Pa«i its way in 1947 if it had

by the middle of the year charged the present 1948 price for coal. It may make a profit in 1948 without being any more efficient. The board started badly by choosing the wrong time to make a loss.”