COAL INDUSTRY

Manawatu Standard, Volume LIV, Issue 281, 25 October 1934, Page 2

COAL INDUSTRY

PRACTICAL SCHEME NEEDED. ELECTRICITY GENERATION SUGGESTED. Per Press Association. WELLINGTON, Oct. 25. “Coal-mining is at present not a paying proposition, and to place the industry on a sound basis some scheme of amalgamation, co-operation, .or combined marketing should he considered in order to bring about the desired result,” said Colonel Holgate, the chairman, in his address at the Coal MineOwners’ Association annual meeting to-day.

He said other industries had materially benefited by such methods. The agreements entered into last February' with the miners’ unions were for twelve months and, although not signed, had, speaking generally, been well maintained. It would be necessary to again meet the union’s representatives in February to consider new agreements.

He gave the main causes for the depressed condition of the coal-mining industry as too many mines operating with consequent over-production, and cutting of prices in some districts below the cost of production. In Australia and other countries it had been found necessary by the Government to step in to prevent price cutting and protect the industry. This practice was one ho advocated avoiding if possible. Colonel Holgate said lie was convinced that without the introduction of some practicable scheme the industry would continue to languish in spite of increasing population and industries. There was one direction in which the Government could be of material assistance, that was instead of making further expenditure on hydro-electric schemes serious consideration should be given to the question of the generation of electricity from coal with power stations erected in the vicinity of the collieries. Apart from electricity’, the increasing use of Diesel oil engines was affecting, and would still further affect, the demand for coal. Colonel Holgate quoted the example of Germany. He said that in 1917 the whole of the requirements of oil and benzine there were imported.'“To-day we are informed that 40 per cent, of the requirements are being produced from their coal.”

He went on to speak of hydro-genera-tion and said he was convinced that in future years New Zealand brown coals at least would be carbonised. He considered carbonising on similar lines to those adopted in the Waikato was the only ideal for New Zealand as high-grade smokeless fuel and oil suitable for forming into Diesel oil, light oil, and benzine were obtainable in payable quantities, the demand for which was already here and increasing. The conference elected the following offieers:—President, Colonel Holgate; vice-president, Mr W. A. Flavell; executive, Messrs W. Goodfellow. W. Excell, W. Hardie, F. W. Mitchell, and 11. B. Bell.