SUBSIDY ON COAL

Otago Daily Times, Issue 27212, 15 October 1949, Page 6

SUBSIDY ON COAL

FIGURE QUESTIONED REPLY TO MR McLAGAN “As far as the lignite mines in Otago are concerned, it is not correct to say that they are receiving a subsidy of approximately £1 -a ton.” This comment was made by Mr R. T. Parker, the secretary of the Otago Lignite Mine Proprietors’ Association, in replying to a statement by the Minister of Mines. Mr McLagan, in Parliament on Tuesday. “ Very few, if any, are getting onehalf of this sum. and the average amount would probably work out at about 6s a ton,” Mr Parker explained to the Daily Times. “If the subsidy mentioned by the Minister were paid in this district, producers could afford to give a substantial reduction in price and the consequent reduction in retail prices would be several pence a ton. Mr Parker added that the Minister’s remarks “would be of some value if he indicated the maximum and minimum subsidies paid to both State and private mines. He appears to have averaged the subsidies paid to State mines and given the maximum in the case of.a few private mines. By those who have some knowledge of the industry, it is believed that certain State undertakings operate at. a net working loss of approximately 30s a ton, which must be reimbursed by subsidy.”