THE USE OF COAL

New Zealand Herald, Volume LXXIII, Issue 22391, 11 April 1936, Page 12

THE USE OF COAL

ASSISTING INDUSTRY

SUGGESTED TAX ON IMPORTS

APPEAL TO LARGE USERS [BV TELEGRATH —SPECIAL REPORTER] WELLINGTON, Friday Any decision which the Government may reach on a proposal to placo a tax on imported coal will depend on the response which the large users of coal in New Zealand make to an appeal to use a greater proportion of native coal. This was made clear yesterday by the Minister of Mines, Hon. P. C. Webb, when he was asked to comment on a report that there was a distinct possibility of some such tax being imposed. " I am seriously concerned about the quantity of imported coal coming into the country," tho Minister stated, "and 1 feel that the mining industry of New Zealand ought to have the same degree of protection as other local industries. I realise the difficulties of some gas companies which have constructed vertical retorts. These require high class bituminous coals of non-coking character, whereas the major portion of the high class bituminous coals in this country have swelling propensities, which make them not quite so suitable for those retorts.

" However, I have certain information made available by tho committee which was set up some time ago and which reported on the advantages to be obtained by mixing coals for different industries. It i« quite evident from this information that the vertical retorts could utilise considerably more native coal.

" Before making any recommendation to the Government to impose a duty on imported coal I am anxious to find out to what extent the principal users of imported coal are prepared to meet the Government in utilising _ a greater proportion of our own coal. With this in view I have circularised all gas companies in New Zealand and I am pleased to say that in almost every case the companies have agreed to consider increasing the amount of native coal they are using. However, I am still convinced that some of the works can utilise a still greater proportion of our coal and I am hoping that those works will consider the matter fully.

"If the general response is sufficiently encouraging it will have a determining influence on any proposed legislation in the direction of a tax on imported coal. The matter will be watched very closely and I give my assurance that the coalmining industry of New Zealand will receive justice from tho Government."