THE H.B. TRIBUNE FRIDAY, MARCH 1, 1929 APPEAL TO DEAF EARS

Hawke's Bay Tribune, Volume XIX, Issue 63, 1 March 1929, Page 4

THE H.B. TRIBUNE FRIDAY, MARCH 1, 1929 APPEAL TO DEAF EARS

Developments in the crisis through which the coal-mining industry is passing in New South Wales, with a likelihood of reflecting on many other Australian industries, have something more than a detached interest for us here in N ew Zealand, for it is very palpable how they may cause reactions here also. As the position now stands there can be no doubt as to the depressed condition into which the coal-mining industry has fallen. At the present cost of production it is found impossible to compete successfully for outside markets from which, particularly in the Far East, it used to draw much of the custom that made it profitable . Worse -than this, it is found that the home Australian market can be supplied from abroad at a figure very substantially below the lowest which the New South Wales companies can quote and still pay even running expenses without regard to return on capital invested. This, at least is the story which is put forward by the companies, and which is supported by the undeniable facts that exports have fallen almost to vanishing point, that even the Governments of other States are importing their requirements, that the aggregate output is diminish ing daily, and that quite a number of pits have ceased operation. It is under conditions such as these .that both the Federal and State Governments have suggested to the miners that they should subnet for the time being to a te ’ c f.on in wages which would bo

equivalent to something like Is per ton on the output. As against this, and in order to help in recovering the outside trade, the Federal Government has offered to subsidise the industry with a bonus now increased from Is to 2s per ton on all coal sold outside New South Wales, and State railway departments are ready to grant material concessions on coal freights. The reply the miners give is that, on no consideration that can be put forward, will they agree to any reduction whatever in the ruling rates of wages. Now it is only fair to them to state the contentions which the miners advance. These were all put forward by a deputation which recently waited on the Prime Minister, Mr. Bruce, with a request that he should order a full enquiry into every aspect of the coal industry.

The points specially stressed as subjects of investigation were the selling price of coal, the profits derived from the industry, over capitalisation, “watering” of company stock, railway and shipping freights, export and sale agencies, and the utilisation of by-products. In support of their request the miners made several allegations against the companies. Increases in miners’ wages, they said, had been followed by very much more than compensating increases in the price of coal that had given the companies tremendous accession of profits. The miners also believed that there was a conspiracy between the shipping companies and the coal-owners to reduce their wages. The unions wanted the profits of the companies disclosed, and particular light thrown on the fact that many of the mines were virtually controlled by shipping companies. Selling agencies were also attacked, it being asserted that in many cases these were operated by the mine-owners themselves, who thus pocketed a second item of profit. Furthermore, it was said that the mines were being worked in a most wasteful way in order that excessive immediate profits might be reaped, and that in this way the future of the industry was being badly prejudiced. It was even asserted that many of the troubles that had arisen between owners and workers had, with sinister purpose, been provoked by the former. Then, there were the allegations of over-capitalisation and stock-watering to which reference has already been made. , This is a pretty formidable list of accusations, and it is to be said for the miners that Mr. Bruce did not make any pretence of dismissing them lightly. In fact, to an extent he admitted that some of them at least were probably capable of proof. His argument, however, was that, to enquire thoroughly into all the assertions made and to formulate a permanent scheme for putting the industry again upon a satisfactory footing must necessarily occupy a good deal of time, certainly not less than twelve months/ While promising that such an enquiry would be instituted on lines satisfactory to the miners, he urged the absolute need for adopting some temporary scheme that would in the meantime keep it alive, and so not only prevent further unemployment but also make ultimate -recovery easier of attainment. To this contention, however, the miners have turned an entirely deaf ear, and so matters would seem for the present to have reached a virtual deadlock. From what has been said it will be seen that the circumstances differ in no great measure from those under which the great miners’ strike of 1926 was brought upon the Old Country. We all know the disastrous consequences arising from that illadvised movement, consequences from which the miners themselves and those dependent on them were, and still are, the chief sufferers.