C—2.

The increasing use of electricity and of fuel oil has greatly reduced the demand for coal for power and other purposes. The displacement of steam plants, used to generate power, by the Arapuni hydro-electric plant again being put into commission was chiefly responsible for the decrease in the output of brown coal in the Waikato district, and the decline in the requirements of railways and the reduced demand of shipping companies for bunker coal is reflected in the reduced production of bituminous coal on the West Coast. The requirements of coal for railways, shipping, and gasmaking constitute the greatest outlet for bituminous coal, and to illustrate the position the following statement shows the tonnages used by these services yearly from to 1931-32 inclusive, also the relative position based on the 1928-29 figures, using 100 as index figure for that year.

It will be seen from these figures that by comparing the consumption of 1931-32 with that of 1928-29 the use of coal on the Railways declined by about 10 per cent., bunkers declined by about 45 per cent., and gasworks by less than J per cent. As showing the decreasing market in New Zealand for coal, the following table, giving the consumption of coal, is illuminating : —

Decrease per head since 1914, 1-23 tons, or 49-2 per cent. The output of the several classes of coal mined in each inspection district is summarized as follows : —

The quantity of coal imported during the year 1932 —namely, 103,531 tons— shows a reduction of 75,529 tons when compared with the quantity imported during the previous year, and it is the lowest quantity imported since 1899, when 99,655 tons were imported.

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1928-29. 1929-30. 1930-31. 1931-32. Tnns Illdex Tons IndeX Tons IndeX Tnno Index ±ons - Figure. ±onSl Figure. ions - Figure. ions - Figure. Railways .. 409,677 100 476,268 116-25 433,004 105-69 369,044 90-08 Shipping .. 319,204 100 315,672 98-89 246,239 77-14 176,811 55-39 Gasworks .. 220,825 100 227,521 103-03 239,788 108-58 220,101 99-67 Totals .. 949,706 100 1,019,461 107-34 919,031 96-77 765,956 80-65

Year. Tons consumed. Population. Consumption per Head. Tons. 1914 .. .. 2,853,684 1,140,172 2-50 1924 .. .. 2,757,690 1,352,618 2-04 1929 .. .. 2,751,520 1,472,925 1-86 1932 .. .. 1,945,497 1,526,115 1-27

Output of Coal during 1932. Total Output Glass of Coal. Northern West Coast Southern _, , to ?>* Distriot District District Total. - tjnd o£ 1932 - (North Island). (South Island). (South Island). Tons. Tons. Tons. Tons. Tons. Bituminous and sub-bitu- 118,127 810,107 .. 928,234 46,476,955 minous Brown .. .. .. 489,342 33,242 283,813 806,397 26,707,377 Lignite .. .. .. .. 661 106,730 107,391 4,656,237 Totals for 1932 .. 607,469 844,010 390,543 1,842,022 77,840,569 Totals for 1931 .. 834,899 890,494 432,363 2,157,756 75,998,547