COAL FOR THE RAILWAYS.

New Zealand Herald, Volume LXVIII, Issue 20893, 8 June 1931, Page 8

COAL FOR THE RAILWAYS.

The promised statement by the Minister of Railways regarding the ordering of coal from Australia is only a partial explanation of its action and does not really explain the deficiency in the supplies of New Zealand coal. There is an implicit admission that reserves of coal, which had been depleted in 1928-29 and 1929-30, had not been replenished, no doubt because of the demand for economies in railway expenditure. Tt was "with a view to building up our stocks of coal" that orders were given on March 18 and again on March 30 for "increased supplies from New 'Zealand mines producing coal suitable for storage." Incidentally, this appears to be tho first official acknowledgment that New Zealand coal is suitable for storage ; in the past, the department has always insisted that it must have Australian coal for reserves. Mr. Veitch does not state the extent of "the shortage of reserve supplies," but it was evidently serious, since the orders sent to Australia amounted to <IO,OOO tons, which, is one-third of the department's total importations in the whole of 1929-30. That purchase has a substantial bearing on the apparent economies in railway expenses, for the whole of the cost will fall upon this year's accounts. The extraordinary aspect

of the episode, however, is the categorical evidence of failure on tbe part of New Zealand mines to meet the department's orders. According to the Minister's figures, orders were given for 7735 tons a week, but deliveries were only 3815 tons, and though be does not give complete figures regarding future prospects, Mr. Veitch says specifically that the prospect of obtaining sufficient coal from New Zealand mines was not satisfactory. Of the seven cases cited, one mine was not producing at all, another was idle for two weeks owing to a strike, and a third had difficulty in supplying the department because other commercial orders had declined. From the others, in respect of which no extenuating circumstances are mentioned, only 2200 tons were delivered in response to orders for 5000 tons weekly. In the present circumstances, it is deplorable that coal •should be imported from Australia, involving the remittance abroad of money that might be used to increase employment in the Dominion. According to the Minister's statement, the Railways Department is prepared to draw all its requirements, for both reserves and current consumption, from internal sources and only the failure of the local industry to satisfy its orders impelled it to buy coal from Australia. There is clearly a responsibility upon the owners of the mines concerned to explain how this situation has arisen.