THE New Zealand Herald AND DAILY SOUTHERN CROSS. SATURDAY, MAY 15, 1926. THE PROBLEM OF GOAL.

New Zealand Herald, Volume LXIII, Issue 19328, 15 May 1926, Page 10

THE New Zealand Herald AND DAILY SOUTHERN CROSS. SATURDAY, MAY 15, 1926. THE PROBLEM OF GOAL.

Coal was at the core of the general strike from which Britain has just emerged. Now that the greater upheaval, which, it was justly insisted, bore no direct relation to the griev- | ances of the miners, has subsided, | coal still remains the pressing problem which the nation in its corporate character must face. When the general strike was precipitated the various parties and the Government were keeping almost ceaseless vigil in the effort to find a formula to bridge the gap between the existent hard times and the better days predicted if effect were given to the recommendations of the Coal Commission of 1925. That possibility was [ obscured as soon as the other unions came out. Coal was relegated temporarily to the rear. Yet the report of the commission contained conclusions and suggestions demanding to be considered in a spirit of calm and deadly earnestness, completely divorced from the passions which a strike lets loose. It was not a cheerful document. The commissioners had warned the public before reporting that it would not be. Yet it was not all gloomy. Confidence was expressed that coal could once again play in the economic life of the country the leading part it had played in years gono by ; but the only means by which that result could be obtained were, to translate the advice given into its simplest terms, a drastic process of setting in order a house where diffused efforts working along a dozen different lines had produced an appalling degree of inefficiency. The commission did not use these words, but they could be heard beneath the greater number of the recommendations. Miners, owners, and the State were all called upon to co-operate in conquering the adverse conditions under which the coal industry was found to labour. There was nothing new in them. Their force had been increased by conditions national and international, but most of them had been detailed before. It was in the suggestion of remedial measures that the Coal Commission of 1925 broke new ground.

Whatever the exact terms upon which the miners agree to man the pits again, it is not likely that any permanent settlement can stray far from the coal report. This calls for a reconsideration of its terms. The situation it disclosed showed coal being produced at a loss from a large number of pits, especially those dependent on export trade 1 and a foreign market. The wages paid had been fixed in 1921, when, in consequence of disturbed European conditions restricting the Continental output, a state' of false prosperity reigned. By the middle of 1925 this had disappeared, but to dissipate the crisis produced by a wages dispute the Government had granted a subsidy to maintain wages at their old level. This was due to expire at the end of last month, and the commission had either to recommend its continuance or to suggest some alternative, since investigation speedily showed that the economic factors blotting out profits had not altered during its period of incidence. One commentator in fact has said that dependence on the subsidy created an inertia and an absence of initiative which led to a decline of technique. There were various proposals to weigh. The mineowners pinned their faith to a reversion to the eight-hour day, by a repeal of the Seven Hours Act, passed in 1919, on the recommendation of the Sankey Commission. The miners had various proposals, at the back of which was always the idea of nationalisation, strongly pressed ever since the days of war-time control. Out of this material the commission had to make its recommendations, to adjudicate in particular on the eight-hour day, nationalisation, and the subsidy. If the latter were condemned, obviously something to take its place was needed. To be ideal it must be something which would produce a speedy effect.

The commission condemned the subsidy without qualification. The verdict was that it should cease, and never be revived. The owners' proposed reversion to the eight-hour day was rejected. The miners' scheme of nationalisation was not endorsed. As an immediate specific against depressed markets and swollen production costs, the commission declared the wages scale must be revised, expressing the hope that with other remedies, longer in producing an effect, the reductions need not be permanent. Unswerving refusal by the miners even to consider a reduction of wages has hitherto prevented much more than academic discussion of the rest of the report. Yet it contains much food for thought, and while falling short on nationalisation offers certain things which the miners have demanded. The principal of these is State ownership of all minerals, which, it is proposed, shall be acquired at an estimated cost of £100,000,000. This sounds like elimination of the royalty owner. In effect it means that the State will become the sole recipient of royalties. The coal won must pay them, for interest and sinking fund on the £100,000,000 must be found. The concentration of ownership promises economy, nothing more. Amalgamation of existing mines, to meet the case of the hopelessly unprofitable pit, is next proposed. Then comes a suggestion for cooperation between power-producing agencies so that steam, electricity, gas, and oil will all be linked together. This has been heartily commended, especially since Britain has 30 few basic sources of power other than coal. Better organisation, elimination of waste, and reduction of overhead charges aro hoped for as a result. Propoßalß for scientific

research and for better regularised distribution, both at home and abroad, conclude the constructive clauses. In these propositions can be found the outline of one of the greatest economic schemes the world has seen. It is the plan of campaign by which it is hoped to resuscitate Britain's great key industry. Coal has fallen on evil times. It has had to be buttressed by subsidies. The safe removal of that prop and the substitution of some sounder support is the. great problem remaining now the fever of the general strike has abated.