Grey River Argus TUESDAY, September 25, 1928. DEPRESSION IN COAL TRADE.

Grey River Argus, 25 September 1928, Page 4

Grey River Argus TUESDAY, September 25, 1928. DEPRESSION IN COAL TRADE.

The news that at the end of the present month there is to be a sUfb stantial reduction made by the Australian coal exporters in their prices on the New Zealand market is by no means reassuring for the West Coast. Bad as the position of the mining industry has been in the Dominion for ,a considerable time past, it is now likely to be come decidedly worse if the importations return to any thing-like their former proportions. The tendency to increase the output, evidenced last year by a record production, has led now to obvious over-production, with a great i.oss of wages by the workers an its natural consequence. It is noteworthy that the prices of local coal are already on the down grade, and the drop in certain in-

stances is staled to be as much as 7s per ton, or slightly more thaii the extent of the reduction which is reported to lie probable in the price of Australian coal. Foi some lime past, the Newcastle mining companies have been ex perienciug a loss of trade, especially within Australia, whilst I hey lost a few ye.-ns ago a large proportion of their market overseas in South America and elsewhere. Recently a contract was.made to supply Newcastle coal to South Australia at a considerably reduced figure, and it is understood Welsh and other coals are being imported to the Australian, port.? which are most distant from the main coal centre. It is, therefore, a sale inference, that Auslralian exporters are about Io make a strong bid to capture the best pari of the Dominion market. While the consumers would certainly welcome cheaper fuel, i 1 is ques tionable whether they will receive fiom the importers anything like a benefit such as would compensate the country as a whole, for the losses which large importations must inflict upon the workers arid others engaged in the New Zealand industry, it might he said that anylhiug like the dumping of Auslralian coal would nilimately prove very del riuieiilal because once it dislocated a large number of miners and led to Ihe ■■losing- of collieries, the setback would lie a lasi ing one fni- I he in dustry. Il Iris become Hie policy of the (loveriuneiit Ip exclude Aus Ira'ian wheat and flour in ordei !■> induce New Zealand lannei? H> plaul wheat. Therefore the reasons for safeguarding an es iablislieil coal industry are al l-asl as strong as those for de vcloping any other industry, cs pecialb,’ when the large ij‘i'mh' , i dependent upoii thc.cst ablished industry in this case, is considered. At the same lime, it mill b.e for New Zealand producers to market I heir coal at. the most reasonable rate possible, and Ihir could be assured by allowing outside competition, should the rate be anywise unreasonable;.. There is already quite enough unemployment generally, and especially in the mining industry', without encouraging anything that is calculated to increase it, The Australian arrangement is stated to be a mutual one among the exporters to lower prices in New Zealand so that :t is a special combination as'against the Now Zealand producers. In that ease, the Govern, incnt should not adopt a passive attitude, if such will make the outside traders a present of the Dominion market. It may be said lhat a reasonable attitude would be to wait and see what the ac tual effect of the reduction is going to be, but it is at the same time wise to be ready for eventualities, and the only proper course in any case is to put Ihe interests of New Zealand first.