COAL PRODUCTION

Greymouth Evening Star, 23 April 1946, Page 6

COAL PRODUCTION

RISE DUE TO OPEN-CAST WORKINGS £717,916 PAID IN SUBSIDY As was the case in 1944, the increase in coal production for the Dominion in 1945 was largely made up of inferior quality fuel from outcrop mines and small units, according to the annual report of the New Zealand Coal Mine Owners’ Association. The report contains figures which, it is stated, show clearly that it was impossible to make coalmining pay at present prices and that without State subsidies very substantial price increases would be necessary to enable the industry to function. Of the total Dominion output for 1945 of 2,829,830 tons—an increase of 23,860 tons over the pevious year—--1,042,583 tons was produced in the northern district, this being 5769 tons more than in 1944 and 239,878 tons more than in 1939. The West Coast district, which yielded 1,128,813 tons in 1944, showed an increase of 31,256 tons. In the southern district, there was a decrease of 14,259 tons, the total production there being 616,084 tons. Coast Mine Production Lower There was a total decrease from the principal mines in the northern district of 74,930 tons. In the West Coast area the decline was 50,535 tons and in the southern district there was a loss of 50,497 tons, making a national decrease of 175,962 tons.

The figures showed that the increase in total output for the Dominion had been obtained not from the principal mines that were in operation before the war, but from the newly-developed sources of supply—mainly the State-operated open-cast mines, continued the report. Production from all the old mines which were yielding highgrade coal had further decreased and the present trend appeared to be toward continuing decreases. It was essential that some plan should be developed which would enable a substantial volume of coal production to be maintained at a cost which could be absorbed by industries and domestic consumers. What Subsidies Mean

Without subsidies, the price of coal from the State mines would require to be increased by varying amounts ranging from 2/9 to nearly 16/- a ton. The total increase in the cost to consumers for a year was indicated by the fact that a gross subsidy of £717,916 was now being paid. This amount, however, would not be sufficient to place the industry on a sound economic basis.

Of the total subsidy of £717,916 paid in 1945, the State mines had received £302,528. This was more than 42 per cent., although the State’s proportion of the total output was 25.8 per cent It was clear that in the matter of subsidies the State-owned mines had been given preferential treatment. :

“During the year the State acquired other mining properties —one in Otago, one in the Waikato district and two in Southland —and so the process of nationalisation goes on,” the report added. “The Minister of Mines, Mr Webb, recently reiterated his opinion that the production of coal is a job for the State. However, this has not yet been put forward officially as a Government policy and we know no more of the Government’s intentions than we did a year ago.” -