COAL CRISIS THREATENED.

Wanganui Herald, Volume LIII, Issue 160737, 25 August 1920, Page 4

COAL CRISIS THREATENED.

THE POSITION CAUSES MUCH CONCERN. MELBOURNE, August 11. It is admitted on all sides that unless wise counsels can prevail to prevent the threatened stoppage in tbe New South Wales coal industry, Yictoria in common with tbe other coal-importing States of the Commonwealth, will bo confronted with the greatest industrial upheaval in her history, says the Melbourne Herald. This State’s industrial fortunes are so dependent on the whim of'the Newcastle coal miners that a strike is followed by immediate dislocation. But under present circumstances, it would mean nothing short of complete paralysis of all industries and essential services. Yictoria’s coal supplies, which in normal times average 125,000 tons a month, apart from the requirements of the Railway Department, have been so depleted by successive strikes that present stocks are only sufficient for a few days. Since the beginning of June less than half a month’s requirements have been received, and there are no reserves upon which to fall back. Only two colliers have loaded at Newcastle for Melbourne this week, which means that about 6000 tons of coal will be the maximum amount available here until next week. For several months Yictoria has lived this “hand to mouth” existence, and the crisis which has long been dreaded now seems immiment. “Prom reliable sonroes it is learnt that the gas companies have only about six days’ supply of coal on hand. Inroads were made on reserve stocks during the recent strike of gas employees, when a limited service was maintained despite the union veto upon the handling of new coal, and the deficiency has not yet been made up. The electric supply works of the City Council and those privately owned could carry on for about three weeks on existing stocks, and after that darkness would be compulsory. Many industrial establishments are now finding it hard to continue, even with the assistance of brown coal, and those open must close immediately if the supply of black coal is cut off.” Coastal shipowners declare that coal is coming to Melbourne as rapidly as the berthing facilities at Newcastle and the limited tonnage will allow. The explanation is that Newcastle is fulfilling large foreign orders, which has the effect not only of preventing the normal, supplies being shipped to the other States, but ensures a preference to foreign-going vessels on the loading berths. InterState colliers are frequently idle in harbour while Japanese ships are filling their holds with coal for Sweden and other parts of the world. Another factor is that bunkering coal must be sent to each port of the Commonwealth to maintain the shipping services, and, further, the Navy Department is using valuable tonnage to bring coal from New Zealand when it might easily make a temporary arrangement to coal its vessels at Newcastle, and so allow the ships that are now running between Newcastle and New Zealand for its purposes to take up much-needed work on the Australian coast. The only glimmer of hope seems to be 'in the fact that Mr Hughes, the Prime Minister, is conferring to-day with the representatives of the Coal Miners’ Federation. The demands of the men for better conditions, more pay, and for what amounts practically to a nationalisation of the industry are being pressed strongly, and it is stated, that they will not accept a refusal of at least some of their demands. With regard to others there may be temporising, but sooner or later the issues will crop up again, and probably in a more aggravated form. Mr Lawson, the Premier, is also busying himself with a view to protecting the interests of the State, and is urging the Federal authorities to put. an embargo on the export of coal from Australia. Commonwealth Ministers do not appear to view the situation in the same serious light as the people of Yictoria, who have seen the crisis approaching for some time, and would be more satisfied if they were sure that some preference was being given to tbeir vital needs over those of European countries, rather than have to listen to a time-wasting debate on whether the port of Melbourne should have been equipped two years ago with mechanical appliances for the discharge of coal.

FOREIGN COMMITMENTS HEAVY. “POSITION SHOULD IMPROVE.”' NORMAL SUPPLIES HOPED FOR. “Wc are committed to heavy foreign export shipments till the end of August,” said a Melbourne representative of one of the largest coalmining companies in New South Wales to-day, “and if a settlement with the miner can be arranged in the interval, we are confident of being able to make provision for the much-needed speeding-up in the inter-State trade after that date. “When the present contracts were entered into we were producing far more coal than could be consumed in Australia under normal conditions, and some of our mines were , not fully developed till an-Oversea trade guaranteed their maintenance. No sooner < had we negotiated and fixed up the contracts now being fulfilled than the local position underwent a complete change. In Melbourne and other leading ports in Australia, where wc could not find buyers formerly, an unprecedented and unexpected demand for supplies of any description was made. Strikes, difficulties in handling, owing to the lack of mechanical appliances, and colliers being diverted to other trades, on account of congestion in other lines of freight, were responsible for the changed conditions. “Owing to our position in the overseas trade and the port regulations of Newcastle, which rule that vessels take priority in loading in the order of entry into the port, we were unable to afford the necessary relief to our own regular customers throughout Australia. It has been stated, and correctly, that the price of the export coal from Australia to the buyers is 22s fid, or 5s a ton in advance of the price fixed by the Federal Govern ment. Bub the colliery proprietors are not making the difference. That probably goes to the brokers who arrange the contracts, over which the seller has no control. “As a result, we are now faced with the galling position of being forced to supply the foreign markets in Japanese and other foreign, bottoms, while our own vessels, for which we have to pay upkeep, are kept idle iu Newcastle waiting for berths occupied by the merchant fleet which the Japanese despatched to Australia immediately they were apprised of a market for their overbuilt tonnage. - “The shipment of these heavy oversea consignments during July showed a marked increase, but during the present month the back of the foreign commitments has been broken. From September onward the position will gradually improve if no industrial crisis occurs, and by the end of the year Victoria and the other States will be obtaining their normal requirements, as far as the output fmm the mines is concerned*"