STATE AS OWNER

Evening Post, Volume CXXXVIII, Issue 10, 12 July 1944, Page 4

STATE AS OWNER

ALL THE COAL MINES

THE MINISTER'S POLICY?

NEW PLYMOUTH, July 11,

A deliberate programme of nationalisation of coal mines on the part of the Minister of Mines, by the process of making the financial position of the 'mining companies untenable and thus forcing disposal, was alleged in an address to the Taranaki Chamber of Commerce tonight by Mr. Stronach Paterson, of Wellington, president of the Associated Chambers of Commerce of New Zealand.

"The serious position of coal stocks, the conditions in the coal industry, and the outlook for essential coal supplies are causing wide concern throughout the Dominion," said Mr. Paterson. "The general public, however, are not aware of the real issues involved, the reasons behind the present situation, and the measures that need to be taken to put the position to rights. It is the considered opinion of the Associated Chambers of Commerce that the veil should be drawn aside and the whole of the facts of the case plainly stated. The facts are these: — "1. At the outbreak of war the capacity of the coal mines of New Zealand for output, and for progressive development by the mine owners was adequate to meet the increasing demands of war, but the conditions of operation and development of the mines have been made impossible for the owners by Government policy in pegging the price of coal, forcing increased costs on the industry, promising to compensate the owners for these costs by way of subsidies, and then failing, after the initial stages, to face up to the determination and payment of adequate subsidies to cover wage increases, other concessions to the miners, and increased costs generally. "2. Through the resulting financial weakness 'of the companies which they cannot remedy for themselves, due to pegged coal prices, production is below maximum because of lack of adequate company finance for development and maintenance. INCOME INSTEAD OF OUTPUT. "3. The elevation of coal-mining to a key position in our war economy has resulted in the miners capitalising on the situation, and the Government has acceded to their successive demands to the point where the miners now aim at a target of weekly income instead] of a target of adequate coal output. In no case do the total production hours per week exceed 40, even taking into account the work now being done on alternate Saturdays. "4. Despite the increased rewards and concessions to the miners, the output of coal per man-shift has not improved, but has actually shown a fall-ing-off tendency. This is not to be confused with the fact that total coal production has increased due to the opening of new mines, the recovery of coal dumped earlier, the development of open-cast mining, and the working of a greater number of shifts than prewar when the product of the industry was not in such demand as now. If production per man-shift could be stepped up, then it would make all the difference to the country's acute coal position, which was not assisted by the loss of imports from Australia. "5. Without its ever having been announced as part of the Government's policy, the nationalisation.of coal-min-' ing is being rapidly effected by the present Minister of Mines. He started the war with three State mines and has added four others. This nationalisation is being brought about by the Minister's making the financial position of the mining companies so untenable that they are forced to sell. Many thousands of pounds are at present owing to the companies in subsidies. The conclusion is inescapable that all preceding events lead up to this object of nationalisation. WHO KULES? "6. There aopears to be close collaboration between the miners' unions and the Government. Indeed, it is a question whether decisions in the industry are made by Cabinet, the Minister of Mines, the Coal Mines Council, or the secretary of the United Mine Workers. "7. The latest step in the process of nationalisation is the commandeering of the Westport-Stockton colliery, announced by the Minister without prior negotiation with the company. It is not clear on what authority the Minister has perpetrated this commandeer, or by whom the decision to commandeer was made. The Prime Minister promised the industry in September, 1942, that nationalisation of mines would not be effected by the Government without its being first put forward as a matter of Government policy and a mandate obtained. ' With the Prime Minister out of the country, is it a case of when the cat's away the mice will play? "8. State ownership or control of the mines has effected no improvement in the industry. Absenteeism and indiscipline have grown, output per man-shift declined, and costs of production increased. If the Government had paid the subsidies necessary to enable company costs of production to be met, then not only the purchase price, but also the still further increases in production costs under State ownership, would have been saved.

"These are briefly the facts in the coal industry today," concluded Mr. Paterson. "They disclose a scandalous position on which the Associated Chambers of Commerce intends to give further information to the public in due course."