H.—24

6

Necessity for Coal-trade Control. 3. (a.) The shortage of tonnage for overseas cargoes still exists, and, although arrangements have been made with the Union Steamship Company with a view to preventing further reductions in imports of coal by them, it is considered wise not to rely on any increased importations being within measurable distance. (b.) The results of the "go-slow" movement, and of the strike which, took place in April last, are clearly shown in the following table: —

(c.) The result of the coal stock-taking conducted throughout the Dominion by the Government Statistician showed that at the 30th April last there was 183,286 tons held in New Zealand by coalconsumers holding 5 tons and upwards. Taking the average coal-consumption for the Dominion at, say, 200,000 tons per month, it is clear that if it were practical to pool the stocks then held they would without replenishment maintain a continuity of business for less than one month. Coal-trade Committees. 4. In view of the three factors referred to in paragraph 3 above, the Government recently determined to request the New Zealand coal-mine proprietors to endeavour to increase their outputs so that greater reliance might be placed by Dominion coal-consumers on the New-Zeaiand-producod article. At the present time the of establishing local coal-trade committees for each centre is under consideration. •The functions of these local committees, if established, will be to see that such coal-supplies as might, be available For delivery within .their several districts arc used to the best advantage from a national point of view. To enable this to be carried out efficiently, the local coal-trade committees will each be provided with paid secretaries to act in an executive capacity for them and as representatives of my Department. Responsibilities of Local Coal-trade Committees. 5. These local coal-trade committees, if established, will be primarily requested firstly to define the limits of their several districts, and secondly to draw up for approval a schedule of consumers, setting out the order of preference which might be followed should coal-supplies fall short of demands, or, in the event of a surplus, to determine who might be given an opportunity to create reserves. Subsequently the committees will firstly be requested to estimate the coal-requirements of their districts —say, monthly—and to report as to the coal in sight to meet those requirements ; secondly, the committees will be requested to deal —subject always, however, to ray approval should I deem fit to interpose- —-with all matters connected with the local allocation or distribution of coal on defined principles—that is to say, without reference to me, unless in doubt, or in case of a, dispute. A regulation having been gazetted causing all deliveries of coal within the several districts to be sanctioned by the respective committee for each district, it follows that adequate control over the coal-supplies available for delivery will be obtained by the Government. It is anticipated that the control which it is proposed should be secured by enlisting the patriotic services of gentlemen skilled in the complicated coal business, and who are familiar with local conditions, will give satisfaction to all parties interested. Priority Permit Branch. Granting Permits to manufacture Goods in the United Kingdom,. 1. Since the Ministry of Munitions in the United Kingdom assumed control over certain supplies of materials in the United Kingdom it has been the practice of the Ministry to issue permits to manufacturers authorizing the employment of machines and (or) materials to be applied to approved objects. As a protection to New Zealand interests, and with regard to the increasing exactitude of War conditions, it was deemed prudent during last winter to inaugurate a system which would enable us to supply the High Commissioner for New Zealand in London with full information in regard to orders which it was desirable in the national interests should be executed and shipped to the Dominion

Month. New Zealand Output, Important Mines. Importations. 1916. 1917. 1916. Totai Is. 1916. 1917. 1917. January February March . . April . . May .. Tons. 146,658 155,962 174,851 159,684 194,323 Tons. 144,053 133,471 152,950 84,668 179,002 Tons. 40,334 19,702 24,335 10,506 26,491 Tons. 14,722 29,958* 90,682* 7,804 56,491 Tons. 186,992 175,664 199,186 170,190 220,814 Tons. 158,775 163,429 243,632 92,472 235,493 Totals 831,478 694,144 121,368 199,657 952,846 893,801. * Includes Admirn ,lty steam-ooal and other spei lial cargoes.