OIL SEEN AS THREAT TO WEST COAST COAL

Press, Volume C, Issue 29467, 20 March 1961, Page 17

OIL SEEN AS THREAT TO WEST COAST COAL

The threat of oil to the West Coast and its mining industry may be more serious than many suppose, according to the chairman of the West Coast Composite Coal Committee, Mr S E. Browne. Mr Browne commented at the week-end on moves by the Coal Merchants’ Federation, representing all wholesale merchants in the North Island, to urge the Government to call a conference of all interested in the coal industry. The federation has voiced a suspicion that an agreement exists which will permit fuel oil from the proposed refinery to be sold in New Zealand as a near-waste product, and has suggested that, to the mining industry, this would represent as much a threat as butter dumping overseas has meant to the country's butter market “This has been a fear to the forefront of discussions by the Coast coal committee for a considerable time,” said Mr Browne. “We have many letters on file on our approaches to members of the last Government, including the Prime Minister, seeking an assurance that the interests of the coal industry would be protected against possible oil fuel dumping," he added “But we never received a single satisfactory reply. The point was always avoided.” Mr Browne said that he would not be surprised were some understanding to exist in connexion with the distri-

bution of fuel oil. The fuel oil could be nothing else than a competitor to coal: as it obtained markets, so markets would be lost to coal. “There is more need for concern here than most persons realise,” he said. It was essential that this new rival should not be given preferential treatment in the coming fight for markets. Less-than-cost prices would give fuel-oil an advantage difficult to compete against, he said. Mr Browne said he was sure the Coast committee would welcome a conference such as that proposed by the coal merchants, although it would be vital that departmental heads and the Minister should be present. There was, he said, a clear need for straight talking on the future of the coal industry, particularly in the light of the development of oil fuel as a rival. In submissions to the Government, the federation has asked for such a conference as “an immediate aim under the auspices of the Government,” It believes that it should bring together representatives from Government leaders. Government departments such as the Treasury. Industries and Commerce. Scientific and Industrial Research. Electricity, and the Ministry of Works, the State coal mines, shipping, railways, merchants. dealers, private mine owners, mine officials and workers, appliance manufacturers and retailers, and gas works.