DISTILLATION OF COAL.

Taranaki Daily News, 30 September 1933, Page 6

DISTILLATION OF COAL.

If the proposal to instal a coal-distilla-tion plant on the West Coast of the South Island is a practical proposition it should have the warm support of the Ministry. It is quite true that the extraction of oil from coal might interfere with revenue derived from imported benzine unless an excise duty were imposed, but there are many financial considerations of another nature that deserve consideration. The member for Buller, Mr. H. E. Holland, states that a company with the necessary financial backing is prepared to instal a plant in Westland provided no excise duty is placed upon the oil produced for a term of five years. Coal distillation plants* are known to be expensive. In Great Britain the Government has gone further than leaving coal-oil free of excise. It has promised a subsidy, and to take a large quantity of such oil for navy purposes. Against the loss of Customs revenue, if such a plant were successful in New Zealand, can be placed the benefit to the unemployed relief funds, and the increased spending power that a revival of coal-mining would bring to Westland. The process of distillation permits the utilisation of large quantities of “slack” coal, the disposal of which constitutes a considerable difficulty for West Coast mines. The Government is justified in proceeding with due caution. Distillation plants are more or less in the experimental stage even in Europe, and the question of the company’s resources will require examination before any commitment is made which may be used merely for flotation purposes. But if there is a real chance of a new secondary industry being established, it is to be hoped the Ministry will take the long view when giving consideration to the concessions asked 'for.