AUSTRALIAN COAL

Dominion, Volume 23, Issue 218, 11 June 1930, Page 13

AUSTRALIAN COAL

■= + GOVERNMENT SUBSIDIES SAFEGUARDING DOMINION COAL-OWNERS TO TAKE ACTION I By Telegraph.——Press Association. Auckland, June 10. In view of the State assistance now given to the New South Wales coal industry under the terms of the recent strike settlement, the New Zealand Coal Mine Owners’ Federation intends to ask the Government to keep a promise made by Sir Joseph Ward about a year ago that the New Zealand coal industry would not be permitted to suffer by such action. Mr. W. D. Holgate, president of the association, in making this announcement, said the Industry had never asked for a duty on imported.coal, but the question of protection against State bounties in Australia had been taken up with the Government about 12 months ago. At that time it was being suggested in negotiations for a settlement of the New South Wales strike that the Federal and New South Wales Governments should grant assistance equal to about 4/- a ton in consideration of the miners’ acceptance of lower wages. Prime Minister’s Promise. A deputation from the Coal Mine Owners’ Association waited upon the then Prime Minister, Sir Joseph Ward, and the Minister of Mines (Hon. W. A. Veitch) regarding this and another matter. The Ministers’ attention was drawn to the risk that if such State assistance were given the New Zealand Industry might suffer! Sir Joseph Ward, in reply, said the Government would not permit the New Zealand mines to suffer on account of assistance given by the State or Commonwealth Governments to the New South Wales coal industry. “We are now asking the Government to carry out the promise made by Sir Joseph Ward,” said Mr. Holgate. “We may go further and ask for a duty on imported coal. We feel quite justified in seeking some measure of protection considering the great importance of the coal industry to New Zealand.

Wages and Freights. “The industry employs over 5000 men whose wages, on a very conservative estimate of £1 ‘a day for a five-day week, amount to £1,250,000 a year. Eighty per cent, of the coal produced in New Zealand is carried on the Government railways on an average of 14/- a ton, which again is a very conservative estimate. The rail freight revenue from this source is not less than £1,300,000 a year. It is questionable whether the consumers of coal in the Dominion realise that the more support they give to this local industry the lower will bo the production costs and the lower the prices of New Zealand coal. Every ton of coal imported means less work for New Zealanders, less money spent in the country, and more money sent out of the country. There is very little difference in the ealoorific value between West Coast bituminous coal and Newcastle coal. Moreover, for steaming purposes Westport coal has had the highest reputation for many years. During the long strike New Zealand has got on very well without Australian coal. There has been no dislocation of either railway services or of gas-making. I am quite certain that the New South Wales Government would never permit New Zealand coal to be dumped at Sydney under any system of export or other bounties.” . , , . . The Government assistance referred to bv Mr. Holgate consists of reduced rail freights and possibly also lower crane charges at the Newcastle wharves.