STATE COAL MINES

New Zealand Herald, Volume LXIX, Issue 21332, 5 November 1932, Page 12

STATE COAL MINES

REPLY TO MR. HOLGATE NO LOSSES TO BE MADE GOOD [BY TELEGRAPH —FRESS ASSOCIATION] •WELLINGTON, Friday A denial of a statement made by Mr. W. D. Holgate, president of the New Zealand Coal Mine Owners' Association, was made by tho Minister of Mines, the Hon. C. E. Macmillan, to-day. Mr. Holgate was alleged to have said that it was doubtful whether, throughout the entire period of their operation, the State mines had been reasonably successful from a commercial point of view, and that they were highly competitive, and as the losses and deficiences had to be made up by the State, competition with privatelyowned concerns was unequal. The Minister said tho published accounts of the State coal mines for the year 1931-32 revealed that for the year ended March 31, 1932, after allowing for interest on capital and depreciation, the Livorpool colliery and the James colliery made profits of £1789 and £2027 respectively and the profit on the whole business for the year was £16,032, of which £7885 was paid to the Sinking Fund Account for redemption of loan capital.

Since the inception of the State coal mines in 1903, the net profits made bv the whole undertakings to March 31, 1932, had been £145,293, and this after providing for interest and depreciation, of which £79,704 had been paid into the Sinking I 1 und Account, which, with the interest thereon, had been used to redeem the loans raised by the Government for State coal mines purposes. The general reserve at March 31, 1932.. was £134,157, so that it would ho seen that there had been no losses to lie made good by the State, and the chance of the State having to do so was very remote.