REDUCING COAL STOCKS

Taranaki Daily News, 29 August 1930, Page 9

REDUCING COAL STOCKS

RAILWAY DEPARTMENT ACTION. COMPLAINTS IN THE HOUSE. By Telegraph.—Press Association. Wellington, Last Night. Mr. H. E. Holland, in the House of Representatives to-night, said some of the coal mines in New Zealand had been advised by the Railway Department that prices for screened coal should be brought down to the Newcastle parity. This could only be done by reduced wages. In addition to this the department’s orders had been cut down, with the result that a number of miners were thrown out of work.

The explanation was, said Mr. Holland, that the department was cutting down stocks. He considered it wise for the Railway Department to have the usual stocks on hand as a standby, and there was no real need for drastic cute in this direction. It seemed that the department and the whole country were becoming panicked. He strongly criticised the action of the Railway Department in trying to bring down the prices of New Zealand coal to the Newcastle low-wage basis. It was impossible to reduce the living standard of any section of the community without a reaction on the people of the whole Dominion,

Mr. G. C. Black urged that the <juestion of coal costs should be investigated. He considered the request that coal should be sold to the railways at the Newcastle parity was unreasonable, and he asked also that the prices paid by consumers at places other than producing centres should be investigated lest the miners should be blamed for the Di’ices paid. The Hon. W. A. Veitch said he was prepared to look into the possible effects on the wage standards and the employment of miners as a result of the Railway Department’s action. He agreed that it was necessary to consider the whole question of costs. The Railway Department had to get coal at reasonable prices, and he would be glad to see if something could be done to adjust the conditions. Mr. Black had mentioned that while the State received 6Jd per ton in royalties a private individual received 4s 9d per ton merely for the right for the coal to be transferred over his property. This position should certainly be considered. He assured Mr. Holland that there was no desire to attack the miners’ conditions.

Referring to the reduction of stocks, Mr. Veitch said the quality of the coal in stock was rapidly deteriorating and, furthermore, it was desired to reduce interest costs. It was purely a temporary re-arrangement and coal would be bought from New Zealand mines right up to requirements as soon as the position had been adjusted.