IMPORTED COAL THE LAST ALTERNATIVE

New Zealand Times, Volume XLVIII, Issue 11046, 1 November 1921, Page 4

IMPORTED COAL

THE LAST ALTERNATIVE

STATEMENT BY MINISTER FOR RAILWAYS. DUE TO FALL IN N.Z. OUTPUT, A number of inquiries have recently been made in Parliament and outside of it in regard to the price paid by the Government for Welsh coal imported by the Railway Department. When seen in connection with the matter yesterday, the Hon. D. HGuthrie (Acting-Minister for Railways) said: “In the first place, the importation of Welsh coal was tee last alternative the department had. The necessity for the importation will be quite apparent- when I aay that the annual requirements of the Railway Department are not less than 300,000 tons, whilst the largest amount received in any one year since 1914 by tho department from tee New, Zealand mines was 182,000 tons; and in 1920 the amount had fallen to below 50,(XX) tons. It was quite impossible for the Government to keep the railways running, and consequently the industries of the country going on New Zealand coal under the conditions which have had to be contended with during the last three years. THE WELSH PURCHASES. “The Government therefore, decided that, whatever the oast, sufficient coal had to be procured for railway requirements. It was offered American coal, which would have cost the Government £6 6s per ton landed in New Zealand Japanese coal at £6 17s 9d; South African at £4 12s 6d; Australian coal at £2 19s —and the latter very difficult to obtain. Welsh coal was offered to the Government at £4 8s 6d per ton, but it was afterwards reduced to £4 os. We have had coal from all these sources, and at the prices mentioned. Taking the Welsh coal, of white we purchased comparatively large quantities, in order to make certain there would be no reduction in railway cervices, we get the following results:— Purchase price Welsh, coal, £4 os per ton, c-i.f-; freight approximately £1 10s per ton; reducing it to £2 15s. “The calorific valne of Welsh coal is supposed to be from 25 to 30 per cent, higher than that of Australian coal; so that on this basis the cost of Welsh coal is approximately £2 per ton, taking the cost, less freight, and the calorific value into consideration. “The Government (added the Minister) has still a considerable quantity of this coal coming to hand before it reaches the end of the present contract-—probably 60,0CX) to 70,000 tons —but, if it can obtain supplies of coal from the local mines, no one will be better pleased than my colleagues in the Government and myself.” STARTLING FIGURES. The following table shows the amount of West Coast coal received by the New Zealand railways during the years ended March 31st; 1914, to 1921. inclusive : Tons 1914 115,324 1915 - 182,645 1916 170,447 1917 166,390 1918 - 133,022 1919 97,384 1920 49,378 1921 23.316 April Ist, 1921, to September 17th. 1921 9.752