The Press MONDAY, SEPTEMBER 8, 1958. Coal-mining Industry’s Problems

Press, Volume XCVII, Issue 28685, 8 September 1958, Page 10

The Press MONDAY, SEPTEMBER 8, 1958. Coal-mining Industry’s Problems

From being a vital, flourishing contributor to New Zealand’s economic welfare, the coalmining industry has declined into a source of justifiable anxiety. For this decline, many factors have been responsible; some were beyond the power of successive Governments to control; but others were allowed to become effective through lack of foresight, neglect of the wise development of resources, and deficiencies within the industry itself. Until the decline became very obvious, little attempt was made to arrest it. The problem has been so aggravated that massive efforts, backed by initiative, intelligent planning, and much capital, are needed to solve it now. In recent years, the coal industry’s difficulties have become a hardy annual for Parliamentary debates. From the Mines -Statements presented each year to Parliament, it can be seen that a continuing campaign is waged by the Mines Department to improve the industry’s prospects. This campaign will not attain the success it deserves without the collaboration of a wide variety of organisations beyond the department’s control. To some extent, workers in the industry have been responsible for its present problem of over-supply. In the past, the industry had an unhappy record of labour disputes, stoppages, and uncertainty of production. Consumers’ requirements were frequently neglected; and little heed was paid to keeping costs at a reasonable level Not unnaturally, consumers turned to alternative (and more certain) means of heating and energy production. Technology was on the side of the consumer in providing him with these means. The cumulative results of the drift from coal are apparent today in the glut of production, the problems of marketing, and the widespread fears* for the industry’s future. Most disturbing of all is the reflection that the country has failed, and is still failing, to make the best use of its natural resources.

There are two ways in which the coal industry’s problems can be remedied: first, by increasing the New Zealand demand for

coal; and. second, by developing export markets. At best, coal exports are a chancy business; and the high costs resulting from the long haul to logical

overseas markets militate against the successful development of regular trade. Since 1935, and earlier, exports have shown a declining tendency, till

in 1956 they totalled only 670

tons. They were boosted last year by the sale of 3000 tons of Paparoa coal to New Caledonia; but in comparison with earlier years they were a mere dribble. Statistics demonstrate

how widely exports may fluctuate from year to year: in 1935, they were 46,146 tons; in 1936, 44,872 tons; in 1937, 113,116 tons; in 1938, 55,711 tons; in 1939, 43.990 tons; in 1940. 81,287 tons. They then decreased each year till 1945 (21,989 tons); recovered to 27,366 tons in 1946 and 28,035 tons in 1947; fell to 18,913

tons in 1948; recovered to 21,575 tons in 1949; and fell to 5066 tons in 1950. In 1952, they reached 14,705 tons, but declined to 1665 tons in 1953, and 871 tons in 1954. During the most recent discussion in the House of Representatives, it was pointed out that the bar harbours on the West Coast constituted a major deterrent to overseas trade, because shipments of economic size were impracticable. The Minister of Mines (Mr Hackett) has announced that he is negotiating with the Minister of Railways (Mr Moohan) for special freight rates for coal, so that it can be railed from the West Coast to Lyttelton. In effect, the Railways Department is being called upon to subsidise the mines, so that <hey can export their coal. When the railways are already operating at a substantial loss, this is surely a questionable manoeuvre. Nevertheless, everyone will wish the Mines Department success in its endeavours to promote overseas sales, and will endorse its efforts to ensure that exports are of good, acceptable quality. At this stage, it is fruitless to repine about the neglect of West Coast port developments that largely resulted from the mining industry’s failure to foresee a need to widen and diversify its outlets.

Means to increase New Zealand consumption, of coal may be at hand if the Government will explore them. Qne of the principal ways would be to encourage expansion of the gas industry, on which the Government .has yet to announce its policy. An encouraging sign was the engagement earlier this year of an Australian expert to advise on the introduction of new gasification processes and the use of low-quality coaL The place of coal in electricity generation schemes has already been recognised by the. construction of the Mercer steam power station, which assures the future of coal mining in the Huntly area. Since construction of the Mercer station began, the general picture of fuel and; power developments has been confused by the Government’s rejection of its predecessor’s long-term plans; and the part that the. coal-mining industry may play in those developments is more obscure than ever. For some years, proposals for increasing the use of coal have been reviewed by an interdepartmental committee; and the Coal-mining Districts Welfare and Research Council has also undertaken advertising, publicity, and public relations activities. Intensified research into coal uses merits unqualified support; and the Government should not fail to encourage as much as it can the establishment by private enterprise of new industries using coal The decline of the 'mining industry has been a long process; and the trend cannot be reversed overnight. But that does not make the need for constructive steps any the less urgent, nor less desirable in the national interest