COAL SUPPLY ASSURED.

New Zealand Herald, Volume LXVII, Issue 20628, 29 July 1930, Page 11

COAL SUPPLY ASSURED.

KING'S WHARF STATION.

POWER BOARD'S AGREEMENT.

SUCCESSFUL NEGOTIATIONS. The terms of the agreement between ,1 special committee of the Auckland Power Board and Glen Alton Collieries, Ltd., for the supply of coal for the steamgenerating plant at King's Wharf were disclosed at a meeting of the board yesterday. An agreement was signed between the Government and the company last week whereby the Government will lease to the company for 40 years the Mac Donald State mine, Glen Afton, one of the conditions of the agreement being that adequate coal supplies should be made available to the board.

Tho representatives of tho company have agreed witli the board to a minimum supply of 3000 tons of coal a week, the board having the right of obtaining any further supplies of coal required from any source whatsoever. They have also agreed that at the end of three years the board shall have the right to take exception to the price being charged and to call for a reduction in price. In tho event of no agreement being reached as to the price to be charged for the further term of three years the contract is to be absolutely determined. The board has agreed to an upset price of 8s a ton for slack and 15s 6d a ton for crushed coal.

The company is to submit a schedule of users of slack coal. It has undertaken that in addition to slack coal over 200 tons resulting from Government contracts the board will have the right over all slack coal available after satisfying all other present consumers as set out in the schedule to be submitted.

The chairman of the board, Mr. W. J. Iloldswortli, said that every clause had been fully discussed and the interests of the board and the consumers were fully protected. The board was assui cd of supplies for some time and at a more leasonable rale than in the past. The present supplies had been playing havoc with the machines, but the board would now obtain coal in a form which was best for results Under the circumstances it was absolutely necessary that the board should be assured of its supplies. This had been done and on conditions that could not bo improved on at present. The board had never before consumed such quantities and in the past no inino had been able to meet its requirements.

Tho general manager, Mr. R. 11. Bartley, said tho board had been thrown back to the conditions before 1925, when Horaliora was brought into action, but no addition to the King's Wharf plant had been made. The increased demand during that time had to bo met by tho same plant. It was hoped to improve tho efficiency of the steam-generation, which would greatly reduce the additional cost.

A motion was passed for the execution of the contract. A motion was also passed complimenting tjje special committee upon the success of its negotiations. -An invitation by Glen Afton Collieries, Ltd., to visit the mine on August 6 was accepted.