TOO MANY COLLIERIES ?

Greymouth Evening Star, 6 May 1930, Page 5

TOO MANY COLLIERIES ?

CONDITIONS IN WAIKATO

DIRECTOR’S DISCLOSURES

[special to “star.”]

AUCKLAND, May 5.

L That the coal industry in the Wai- ’ kato is facing difficult conditions, and * an unpromising outlook, was the key- ' note of an outspoken address deliv- ’ ered to-day to fellow-Rotarians, by Mr ’ C. M. Rich-White, a director of the Glen Afton collieries. “In the Waikato,,” said the speak--1 er “we have five collieries at present ' operating; Taupiri, Pukemiro, Waipa, Renown and Glen Afton. The first ' four are public companies, while the latter is private, being owned exclusively by the New Zealand Co-op. Dairy Co. Ltd.” It was not generally known, said Mr Rich-White, that with the exception of Glen Afton, all tne other Waikato coal mines had only worked an average of about three and a-half days weekly during the last five or six years. During the past two or three months these mines had not averaged more than about two days work each week. This information

might come as a surprise, particularly in view of the fact that quite recently new companies had been floated, indicating that the existing mines were not able to satisfy demands. There was no shortage of coal, each company having millions of tons awaiting production. The controlling factor in the coal industry to-day was not production, but markets. There was no use in coal seams showing millions of tons if there was no profitable market offering. Unfortunately, the public had been under the impression that one had only to locate a work-

able seam of coal, and a fortune was waiting to be picked up. They had never been told the truth, and it was TIME SOMEBODY SPOKE UP. - ---t During the last few years inaccuracies amounting almost to misrepresentation had been contained in the prospectuses offered to the public in connection with the coal industry. The public had been invited to invest still further capital in. an industry which was already overdone, and was in a most difficult position. The speaker quoted from an advertisement published in 1925, showing that at that date, the four Waikato companies were capable of turning out 640,000 tons of coal per annum, whilst the sales totalled 490,000 tons. The restricting effect, Arapuni would

have on future sales was also emphasised, yet in face of this a company prospectus was issued shortly after in which the statement appeared “within the last year the principal mines in the Waikato have been taxed to the utmost to fulfil orders.” The mere fact that a new colliery opened did not increase consumption one ton per annum; it only further divided the existing business. During the last few years they had seen the establishment of a number of comparatively small co-operative mines operating in the Waikato district. These mines did not individually turn out a very great tonnage, but their collective outputs was more than sufficient to absorb the increased trade over the last few years. He believed he "was well within the mark in stat-

ing that the principal Waikato collieries were to-day only producing two-thirds of their output in 1920. It seemed to him that in order to place the coal mining industry in the Waikato in a stable position, there would have to be considered either an amalgamation of interests, a pooling of sales, a merger of capital, or some combination which would restrict the output to the needs of the market. He had purposely refrained from touching on the labour conditions which were also teeming with difficulties. Concession after concession had been granted, until the management of the industry had almost entirely been wrested from the owners. The unemployment situation in operation to coal, was greater than most people imagined.

DOMINION’S RECORD OUTPUT

AUCKLAND, May 6.

The Minister of Mines (the Hon. W. A. Veitch) announced to-day that the output of coal in 1929 in New Zealand exceeded the record total of 1928, being 99,111 tons more than in any previous year. This, he said, was attributed to several causes, notably the greater use by the railways of New Zealand coal, and the use of New Zealand coal for gas making. He hoped that when the Australian coal dispute was settled, gas companies would continue to use New Zealand coal.

The comparative figures for 1929 and 1928 (the latter in parentheses) are as follow: —Output 2,535,864 tons (2,436,753), persons employed 5,497 (5,376), imports 215,656 tons (247,861), exports 205,403 tons (125,771).