NATIONALISATION OF COAL

Press, Volume LXXXIV, Issue 25552, 21 July 1948, Page 6

NATIONALISATION OF COAL

MR MCLAGAN REPLIES TO CRITICISM x INCREASED PRODUCTION THIS YEAR (From Our Parliamentary Reporter.) WELLINGTON, July 20. The Westport Coal Company Bill, which is to give the Government power to take over the few remaining shares in the company which it bought recently for £900,000, was used as a peg on which the House of Representatives hung a discussion to-day on the whole question of the Governments coal policy. Mr C. M. Bowden (Opposition, Karori) said that coal-mining companies, because of a sense of frustration and despair, for which the Government was responsible, had accepted the Government’s offer to buy them out. Government policy was one of the reasons why the Government had put obstacles in the way of the companies so that it could pursue its policy of nationalisation. Mr Bowden referred to the heavy subsidies paid for coal production and asked if the policy of State-owned mines had meant more efficiency, happier relations with the workers, and happier relations between coalmining and other related industries. He said the National Coal Board in Britain hao lost £23,000,000 last year. The Minister of Mines (Mr A. McLagan) said that the bill did give effect to the Government’s policy of nationalising the coal industry, but nationalising the industry was only part of the Government’s purpose. By defending private coal mine operators, Mr Bowden had taken on the defence of private enterprise at its weakest point. The Government was mostly concerned to conserve the country’s dwindling resources of coal, which had been threatened by the incompetent way in which private mines had been run and by. the callous disregard byprivate companies of the need to conserve the national resources of coal they were exploiting. Coal Lost in Buller By the operations of the Westport co/npany, Mr McLagan said, many millions of tons of coal at Denniston and Millerton had been lost—much of it high grade coal of a quality all too rare. Mr McLagan claimed that many of the companies which the State had acquired had asked the Government to buy them out and said that "if the Blackball mine had not been bought by the Government its owners would nave abandoned it. Replying to Opposition interjections ’bout importations of coal, Mr McLagan said that in the past New Zeaand had searched as far afield as Japan and India to buy coal—and at a ime when miners were out of work in New Zealand collieries. The present coal shortages came because the existing mines could not cope with the demand.

My McLagan said a fair price had been paid for the Westport Coal Company which, commercially, had been a well-managed concern with a long record in the industry. In return for its £900,000 the State had obtained nearly £500.000 worth of cash and assets. The company’s commercial operations had been of great value.

Answering Opposition questions whether State mines were losing money, Mr McLagan said that one State mine, Mossbank, was losing 10s a ton on its coal when the State took it over. Now that loss had been converted to a profit of Is 3d and the amount of subsidy payable remained the same. Explosions in State Mines Discussing the conduct of State mines in general, Mr McLagan referred to mine disasters of the past and said: “I’m touching wood, but there has never yet been an explosion in a State mine.”

Mr McLagan said the seven-hour day had been observed in the mines for only three months, but in each oi those months production had increased. The latest figures showed that 231,538 tons of coal was produced last month compared with 219,366 tons in June, 1947, an increase of 12,172 tons, although the number of employees was if anything down rather than up. Of these totals 178,909 tons were mined underground in June, 1948. compared with 175,875 tons in June, 1947.

For the six months ended June ,1948, total coal production was 1,368,904 tons, compared with 1,268,128 tons for six months ended June. 1947. Of this increase of 100,776 tons, 15,570 were from open-cast mining and the balance from underground. Mr McLagan said relationships between miners and employers were better under State control than in the days when miners had to hold their meetings in the bush with sentries posted. Mr W. Sullivan (Opposition, Bay of Plenty): Before the Minister was born. Mr McLagan: Not before I was born and not before I was associated with the industry. Mr McLagan said members would doubtless be saying “What about Ru“?nSa l, was pleased to announce that the Runanga dispute had been settled and that work was resuming toThe bill was put through all stages and passed.