State Coal Mine At Kaitangata To Close

Press, Volume CIX, Issue 32220, 12 February 1970, Page 24

State Coal Mine At Kaitangata To Close

(Ac* Zealand Press Association)

DUNEDIN, February 11.

The Lockington State coal mine at Kaitangata is to cease production from September 30 this year, until when the Government proposes to continue to meet losses sustained. This was announced today by the Minister of Mines (Mr Shelton) at a public meeting at Kaitangata.

From September 30 work will be confined to the salvaging of equipment from the mine. During the intervening period the Government is to provide the same assistance to the men affected by the mines closing as it did at Dobson.

“So far as is practicable we have absorbed, and will continue tc absorb, mine r s from Lockington into other State mines.” Mr Shelton said. “It has been suggested thai the decision on the future of Lockington was delayed for political reasons until after the General Election. This is not the case. The delay has been at the request of the union to allow further representations to be made.” he said “There is no doubt in my mind that on purely commercial grounds continued opera tion of the mi"p cannot be justified.” the Minister said “Only the Government could have carried on since 't took over from the Kaitangata Coat Comnany 14 rears ago” The Government had agreed to the navment r»f the special retiring allowance to th? men who had left the Lo?kin*4on mine Those who had left since September 1. 1969. had been paid this allowance For pennle who had houses which thev were unable to dispose of and whn wished to nurchasp a house in another area, an interest-free loan of nn to 91000 wo”ld he P a id until thpv wore able tn d’ennee of their houses, Mr Shelton said

Special Assistance Special assistance for trans fer is to be given by th< Labour Department for mer wishing to leave the district to take up employment else where, and the department i; to co-operate in finding suit able employment. Allowances will not affec unemployment benefits avail ahle to men who are temnor arily unable to find altema five work. Mr Shelton said The Lockington mine, the only State mine in the are; at present, employs about 7; men. The decision to close the mine will mean that these men will be out of work One of the miners today described the future as being “a case of survival of the fittest.” Only 10 men remained to day at the mine, three miles towards the coast from Kai tangata Both shifts were idle so that miners could attend the meeting with Mr Shelton The final blow to the mine occurred in September. 19H9 when N.Z Cement Holdings. Ltd. its principal customer.

_ cancelled an order for Lock ington coal amounting to 4t ■ per cent of its total output—--25.000 tons a year 1 No-one was surprised at the r decision The prospect has been in the offing for some " time, as the mine had been mnning at a loss of $100.00(1 a year for the last five year* J. at least This included the NZ Cement Holdings market r and also ‘ the best efforts of r unen. unions and management

to reduce this loss, Mr Shelton said. Yesterday afternoon Ml Shelton met N.Z. ; Cement Holdings, Ltd, to see if there was any possibility of their decision being reversed. “The figures they gave left me in no position to criticise their decision. “They had no alternative "’but to take cheaper coal in * place of supplies from the Lockington mine." he said. Reaction from the represisentatives of miners’ unions 'lto the closure was one of dis- ’ I appointment ’ The president of the United ' I Mine Workers of New Zea ’ land, Mr A. V. Prendeville '(said: “Kaitangata deserves a '’better deal than we are get- * Sting now from the Govern merit. The Government should have another look at the post Ilion. We are prepared to do anything to assist the Mines Department and the GovernIment to reduce costs at Lock ‘ ington." “No Encouragement" r The president of the Otago ,Coal Miners’ Union (Mr A. W t; Forrester) said that he was tl extremely disappointed at the * I negative approach made by r llhe Mines Department Little l or no encouragement had been given and the Govern“’ment had opened the mine ’■and “left us to carry on.” He asked the Minister to ’I give “very serious consider jation” to continuing with the 'mine. b The chairman of the Otago •iCouncil (Mr D. R. Hunter) ’lsaid he was shocked and surprised at the proposal to close the mine. The absorption of miners into other trades was la retrograde step and the ’ council would “bend over backwards” to stop it.