COAL FROM AUSTRALIA.

New Zealand Herald, Volume LXVII, Issue 20598, 24 June 1930, Page 11

COAL FROM AUSTRALIA.

PROBABLE EFFECT OF DUTY.

HIGHER PRICE FOR GAS,

CASE FOR THE COMPANIES

[nY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON, Monday

It is understood that representations have been made to the Government on behalf of the pas companies regarding the probable effect of a duty on imported coal, the action being the outcome of the movement in the direction of imposing a dumping duty. The case for (lie companies, as submitted to the Government, may be summarised as follows: —First, that there is no subsidy, bonus or similar Government monetary assistance given or allowed to exporters of Australian coal to New Zealand, New Zealand being, it is stated, regarded as Australia in respect to the payment of an export bounty; second, that it is absolutely necessary, under modern conditions of gas-making, to use a proportion of coal of the character produced in tho northern mines of New South Wales, and not produced in the mines of New Zealand. Records kept by the Wellington Gas Company, it is stated, show that since its supplies from Newcastle were cut off, the output of gas per ton of coal fell from approximately 22.000 cubic feet to 1/.000 cubic feet. Additional expense, amounting to over .£7OO a month, was incurred by the company through carbonising other than Newcastle coals. '1 he Government's attention is directed, furthermore, to the competition of fuel oils which are admitted duty free from foreign countries. If a duty is placed on Australian coal, it is stated there will be no alternative but to raise the price of gas. SUPPLIES FROM WEST COAST. CRUDE OIL COMPETITION. The position as far as the Auckland Gas Company is concerned was explained by the managpr, .Mr. J. Lowe, yesterday. \ ery little Newcastle coal was used by his company, he said, but the point was that supplies of good-class coal from West port and Grey mouth were anything but regular and in times of shortage it was necessary to employ similar grade coal trom Australia. Such an occasion had just arisen. The strike at Greymouth had stopped supplies coming to Auckland and no sooner was the strike over than the bar silted up and for the past six weeks a number of colliers had been unable to get out of the _ harbour. As a result it had been practically impossible to gc-t the coal required. There were times when West Coast coal was scarce for weeks at a time. To be deprived of Newcastle coal in such circumstances would be a great hardship. "The request for this duty on Newcastle coal has come from New Zealand miners," said Mr. Lowe, "but, there is a much greater competitor to our locailvproduced coal than Australian coal. I refer to crude oil, which is admitted duty irre from America and is competing verv seriously against our miners. It would be much more to the point, if the Government decided to put a duty on crude oil."