COAL MINE INDUSTRY

Greymouth Evening Star, 3 December 1929, Page 4

COAL MINE INDUSTRY

A MERGER SUGGESTED. A merger of coal mines in certain districts in New Zealand as a means of reducing overhead expenses was suggested by the president of the New Zealand Mine Owners’ Association (Mr W. D. Holgate) in his presidential address at the annual meeting in Wellington. , “There is no doubt,” said Mr. Holgate, “that the coal industry is overcapitalised in productive capacity, equipment and man power. The demand could be more economically handled with three-quarters of the collieries in existences Unfortunately the coal mine owners’ business is different from any other business, as it is not possible for a coal company to reduce its expenses by dismissing labour. Such attempts have brought about small strikes. It would be possible for a company to work more economically if able to dismiss hands and work continuously instead of only three to four days a week, thus reducing overhead expenses. The only solution of the difficulty, as far as I can see, is to follow the example of other countries and bring about a merger of the companies in certain districts, or, failing that, a combined marketing scheme. By such an organisation over-lapping and other expenses could be considerably rediiced and quite possibly cheaper coal could be sold to the public.”