NO MARKET FOR COAL

Sun (Auckland), Volume IV, Issue 963, 5 May 1930, Page 10

NO MARKET FOR COAL

INDUSTRY OVERDONE TALK TO ROTARY CLUB "The coal-mining industry in New Zealand is being overdone,” declared -.Hr. CJ. M. Richwhite in a talk on the coal industry at a luncheon of the Rotary Club this afternoon. "Four of the five principal mines in the Waikato are working an average of only three and a-half days a week—sometimes considerably less.” he said. There is no shortage of coal in the North Island, the seams in the Waikato containing millions of tons, but there is only a very limited market, according to Mr. Richwhite. Many an unscrupulous company promoter has declared otherwise in a misleading prospectus, but the fact is that today the production in this district is only about two-thirds of that of 1920. Only one colliery is paying a gpod dividend. Mr. Richwhite considers the industry in the "Waikato can be placed on a good footing only when there is a merger of capital and production. The demand today is growing less instead of increasing, and savings must be made in overhead costs. New markets must also be found. The increase in the use of electricity in houses and in factories has led to a very serious decline. The closing of the electdic-power station at King’s Wharf has meant the loss of 2,300 tons of slack a week, almost the total output of certain of the mines. The speaker then dealt with new uses for coal. These included one process for tli cliquification of slack in the production of an efficient substitute for motor spirit, which, he believes, will ultimately solve the problem of the mining idustry in England. It is unquestionable, however, whether this will affect the Dominion appreciably as the caiptal for such an undertaking would be tremendous. New Zealand can look for salvation rather to the carbonisation of slack in the production of briquets, but even here a new market is required. The position of the coal industries of other countries was also touched on by Mr. Richwhite. This is the most scientifically conducted industry in the world, he said, but, owing to economic conditions, the cost of production is greater than the value of the product. The demand for coal in England has fallen too far for the proposed cures of nationalisation of the mines and the State purchase of royalties to be effective. The mines of New South Wales have been closed for more than a year involving a loss of 11,000,000 tons of’coal and throwing 25,000 men out of employment. The cost of coal in Newcastle had doubled during the last 10 years through the increased cost of living, tariff protection, “go slow” policies and petty strikes. In that period there have been 2,928 strikes, with a resultant loss of £6,392,000 in Mages to the workers. Among the guests at today's luncheon "„ a ” Hor| . E - -A. Ransom, Minister of Puolic Works.

The talk at next Monday’s luncheon will be given by the Governor-General Dord Bledisloe.