COAL INDUSTRY MAY LOSE SALES TO OIL

Press, Volume C, Issue 29682, 28 November 1961, Page 26

COAL INDUSTRY MAY LOSE SALES TO OIL

(New Zealand Press Association)

AUCKLAND, Nov. 27. The coal industry expects to lose the sale of 200.000 tons of coal to industry because of competition from oil, Mr A. S. Andrews, a director of David Lloyd, Ltd., told the No. 2 Transport Licensing Authority (Mr E. H. Langford) today. He was giving evidence in a case in which Herbert Arthur Richards, an Auckland carrier, was seeking a general carrying licence to supplement his coal-carrying licence. Counsel. Mr J. Kingston, said that Richards had been engaged in the carrying of coal from the Kopuku mine to Auckland industrial firms. But because of the inroads that oil had made in his business he had to seek additional work. Mr Langford granted a temporary licence for six months. At the end of this period the licence will be reviewed. Mr Andrews said that New Zealand was being used as a dumping ground for overseas oil companies. At the present rate of change-over coal would disappear from Auckland industry within the next few years unless something radical was done. Opposing the application on behalf of the carriers’ associations. Mr J. Price, said that the carriers were sympathetic to Mr Richards but the transport industry was far from being in a buoyant position. Any new licence must eat into the amount of general work already available. Other coal carriers would probably be forced to make applica-

lions for general work, he said. Mr Langford said the Kopuku mine had not been used to the full extent. If a low railway rate had been available from the start even dumped oil would not be able to compete. '