COAL SHORTAGE

Otago Daily Times, Issue 26367, 23 January 1947, Page 6

COAL SHORTAGE

STEEL INDUSTRY HIT SCOTTISH OUTPUT INCREASED N.Z.P.A. Special Correspondent LONDON, Jan. 21. The Ministry of Fuel and Power states that it Is hoped that the 25 per cent, reduction in coal allocations to certain Industries will not continue for more than six to eight weeks, although It is pointed out that any increase in coal production is dependent largely on the weather. One hopeful note is a report from Edinburgh that the output from Scottish pits increased by 78,000 tons during the first fortnight of the present month, and a similar increase is expected for the third week. It is claimed that the reduced coal allocation to the steel industry should not reduce the total output. for the year by more than 400,000 tons. This is admittedly a setback to the hopes of many steel-using industries, but Government spokesmen claigi that the 1 leaders in the industry are exaggerating the probable effects. On the other hand, Clyde shipbuilding firms,' who have record overseas orders, point out that penalties for delay are being sharply Increased, and they cannot face these for any length of time if short steel deliveries Interfere with delivery rates. The Argentine Government recently insisted that the penalty for delay on four ships recently ordered on the Clyde should be fixed at over £IBO a day. A number of Lanarkshire steelworks have decided to operate immediately a four-day week, because of the cuts. Most of the spinning and weaving firms in Lancashire are still without reserves, and thefear is that the allocations will be insufficient to prevent stoppages. Ministry officials indicated that as soon as domestic fuel consumption decreases with the approach of spring supplies will be diverted to rationed industries.