THE COAL SITUATION

Otago Witness, Issue 3525, 4 October 1921, Page 48

THE COAL SITUATION

CHRISTCHURCH, September 27. According to Christchurch men in the coal trade, the Government is conducting negotiations in Australia with the idea of obtaining an extension of time over which delivery has to be made under its contract to take 5000 tons of Newcastle coal per week for a year for the purposes of the railways. “ This is the outcome,” says the Sun, “of a complete change in the coal situation, which not only applies to the dominion, but which is general throughout the world. The New Zealand Railway Department has now large stocks on hand, and the supply in sight is ample for a long time ahead. Large supplies of coal are available from the New Zealand mines, and the Government has still to take delivery of the greater portion of the 150,000 tons of Welsh coat ii contracted for. It is also reported that the Government some time ago purchased 100,000 tons of coal from the Australian commonwealth reserve stocks, but it is believed that the greater portion of tins has been delivered. With the restriction in the railway services the consumption of coal by the Railway Department. must be a good deal below normal. and even more marked must be the falling-off in the domestic and industrial consumption of coal. The domestic demand during the winter months has not. been more than two-thirds of that usually experienced. According to several Large distributors, the mildness of the winter is in part responsible. Farmers who usually order a truck load of coal at a time have been economising, and have been carrying on in many instances with the surplus timber on their plantations. Many industrial concerns have reduced their out-

puts. Most of the freezing works have closed down, and the various gas companies in the dominion have been able to accumulate large stocks. 1 lie mining industry is naturally feeling the position to a very marked extent. Some of the largest West Coast mines are working short time, and one is likely to be closed down for the whole of this week. A number of cooperative mines have not been able to find purchasers for their output for at least a month past, and some have temporarily shut down. The industry in Ihe Reefton district is specially hard bit. Reefton coal is particularly friable and lias declined greatly in public favour, because during the period of scarcity many mining concerns sent out surface coal and unscreened supplies. The lignite mines in some instances have closed down. '‘Several of the mines which were large suppliers are not now sending an ounce of coal to Christchurch.” said one merchant. “There have been slight reductions in the rates for lignite coal. Generally speaking, the surplus of all classes of coal has not worked to the particular advantage of the. consumer in matter of price. The greatest benefit is that the public can demand much better quality.” BULLF.R PROGRESS LEAGUE’S PROTEST. WESTPORT, September 27. At a meeting of the Puller Progress League to-night it was resolved—“ That the league views with alarm the continued importation of coal into the dominion, as having a very detrimental effect in the closing down of mines and shipping, and consequently the sapping of the industrial life of the people.” It was mentioned that mines were idle for want of orders, and the Government was losing revenue owing to the small quantity of coal carried over the railway connecting flic mines with the port. It. was also pointed out. that, imported coal was more costly than that, produced locally, and the payments for the former wore going to a non taxable population, thus adding to (he taxation burdens of the people of the dominion.