REEFTON COAL

Grey River Argus, 11 September 1930, Page 5

REEFTON COAL

RAILWAY ORDERS Exploitation Question THOROUGH INVESTIGATION ASKED. (Special to 1 ‘Argus.’’) WELLINGTON, September 10. The question of railway coal orders with particular reference to the Reefton field was the subject to-day of ■tatements in Parliament by both the Alember for Alotueka and the Alinister of Railways. One of the Alinister’s remarks was: ‘‘l will have no exploitation. ’ ’ Air G. C. Black, in bringing up the matter, said:—“l wish to impress upon the Alinister of Mines and the Alinister of Railways that the time has arrived when there should be a thorough investigation of the whole position regarding the Reefton coalfields. ’ ’ He said that recent surveys had proved that there was good coal, and much of it, waiting to be mined. Air Black referred to the fact that the Railway ofV Stores had asked one Syndicate to reduce the cost to the Department. It had replied that the cost of producing a ton of coal to them was £1 1/10-1, and that the same was Fold to the Department for 22/6. and that, while the Government royalty was only Bid per ton, a private iind'iv/.dual was collecting a royalty of 4/9 per ton on the same Air Black referred also to the position of the purchase of railway coal. On the 31st of July last, he said, the Perfection Valley Syndicate notified I Alessrs F. R-edpath and Co., of Christchurch, that it proposed ’to discontinue the agreement made between them as selling agents, and al?o that it proI posed to discontinue the payment of 6d per ton on the orders supplied to | the Railway Department, and the Syn- | dicate had received a reply, in the ; course of which it was stated: “We would ask yon to make it clear whether you intend to supply further coal to the Railway, and, in the event of doing so. are we to understand that from the 31st of July next, you want to discontinue allowing us the 6d per ton o n the coal supplied to the Railway Department.” On the 21st of August .he said, the Syndicate was asked to reduce costs, and on the- 25th of August its order was cancelled from Ist September instant. The Comptroller of 'Stores, in a letter, stated: “I presume that the costs you show apply to all coal supplied by you to the Railways, as well as to your ordinary trade supplies, if this is the case, may 1 say that I do not know whv von should pay a commission of (id per ton on any coal supplied to my orders, and 1 have not been aware that you were doing so.” In a letter to the Member for the District, Air Black continued, the syndicate commented: “When Mr Guincss says he does not know why you should pay a commission of 6d per ton on any coal supplied to my orders, and I have not i been aware that you were doing so, he lis not truthful. We have letters from i him at tho beginning of our supplies to the Railway showing that he defin- ' itely knew we had Alessrs F. Redpath land Co. as agents.

Mr Black suggested that, in view of the circumstances outlined in this correspondence, the position should be closely investigated by the Alinister. The Minister’s reply was as follows: As Alinister of the Department, and as custodian of the people’s money. 1 object to anybody coming between the Department and the producers of coal. It is right to pay reasonable remuneration to the companies |and the miners, but such, impositions as had been indicated could not be tolerated. I have made up my mind that the Government is not going to continue paying the price that was being paid to Perfection Valley, for example, in which instance both the Company and the Department were being seriously exploited by the holder of a certain lease, who was demanding a royalty of 4/9.” The Alinister went on to refer to the interest he had taken in, and had for, the Reefton coalfield, and the survey that had been carried out. etc. He said: ”1 am hopeful that the coal mining industry there will be developed on a much more satisfactory basis than at present. It is my intention to put up a fight to cut out all extortionate charges made by people who contributed neither in labour nor financially towards the production of the coal. I would | rather give up buying coal than pay ' a price which was, in part, made up I of an extortionate royalty of 4/9 per ' ton.” Regarding the- allegation made i by the Perfection Syndicate, that a 1 Christchurch firm was collecting an, agent’s fee of 6d per ton on the coal bought from a Reefton Coy, that mat- ; ter would be investigated with a view to relieving the Department of that load of cost. i