STATE AID TO N.S.W. COAL

Taranaki Daily News, 11 June 1930, Page 11

STATE AID TO N.S.W. COAL

DOMINIONS OWNERS’ FEAR

PROTECTION MAY BE SOUGHT PROMISE OF GOVERNMENT Uy Telegraph.—Press Association. Auckland,' Last Night. In view of the State assistance now given tot the New South Wales coal industry under the terms of the recent strike settlement, the New Zealand Coal Mine Owners’ Federation intends to ask the Government to keep the promise made by Sir Joseph Ward about a - year? ago; that 'the Nfew - Zealand coal industry would not be permitted to suffer by such action. Mr. W. D. Holgate, president of the association, in making this announcement, said the industry had never asked for duty on imported coal, but the question of protection against State bounties in Australia had been taken up with the Government about twelve months ago. At that time it was being suggested in negotiations-for a settlement of the New South Wales strike that the Federal and New South Wales Governments should grant assistance equal to about 4s a ton in consideration of the miners’ acceptance of lower wages. A deputation from the Coal Mine Owners’ Association waited upon .the then Prime Minister, Sir. Joseph Ward, and the Minister of Mines, the Hon. W. A. Veitch, regarding this and another matter. The Ministers’ .attention was drawn to the risk that if such State assistance were given the New Zealand industry might suffer. Sir Joseph Ward in reply said the Government would not permit the New Zealand mines to suffer on account of the assistance given by the State or Commonwealth Governments to the New South Wales coal industry. “We are now asking the Government to carry out the promise made by Sir Joseph Ward,” said Mr. Holgate. “We mav go further and ask for a duty on imported coal. We feel justified, in seeking some measure of protection considering th© great importance of the coal industry to New Zealand. The industry employs over 5660 men whose wages, on the very conservative estimate of £1 a day for a five-day week, amount to £1,250,000 a year. . “Eighty per cent, of the coal produced in New Zealand is carried on the Gov-' ernment Railways. On an average of 14s a ton, which again is. a very conservative estimate, the rail freight revenue from this course is not less than £11,300,000 a year. It is questionable whether the consumers of coal in the Dominion realise that the more support they give to this local industry the lower will be production costs and the lower the prices of New Zealand eoal. Every ton of eoal imported means less work for New Zealanders, less money spent in the country and more money sent out of the country. . “There is very little difference in calorific value between West Coast bituminous coal and Newcastle coal. Moreover, for steaming purposes Westport coal has had the highest reputation for many years. During the long strike New Zealand got on very well without Australian coal. There has been no dislocation of either the railway sei rices or of gas-making. I am quite certain that the New South Wales Government would never permit New Zealand coal to be dumped at Sydney under any system of export or other bounties.” The Government assistance referred to by Mr. Holgate consists of reduced rail ' freights and possibly also lower crane charges at the Newcastle wharves.