C.—2.

time worked during' 1935-36 at the State Collieries, the Liverpool Colliery worked 9 per cent, greater time during 1936-37 than during the previous year, while at the James Colliery the increase was 15 per cent. As from the Ist July, 1936, the wages of the employees of the State Collieries, in common with other coal-mine employees, were restored to the rates ruling in the year 1931 before the reductions in the rates of wages were made. Again, as a result of the introduction of the forty-hour week, the daily rates of pay (not hewing-rates) were increased by 10 per cent, as from 12th September, 1936. A further increase of in some cases 5 per cent, on the daily rates (not hewingrates) and in other cases of Is. per shift was granted as from the 27th March, 1937, but this increase is, of course, not reflected in the accounts for 1936—37. To meet the cost of the restoration of wages the selling-prices of State coal were increased in August, 1936, and owing to an increase in shipping-freights, the sellingprices of sea-borne coal had to be further increased as from the Ist February, 1937, to meet these additional costs. Output and Sales. Liverpool Colliery.—^The gross output for the year was 132,966 tons, as compared with 121,531 tons for the previous year, an increase of 11,435 tons. James Colliery. —The gross output for the year was 40,690 tons, as compared with 34,502 tons for the previous year, an increase of 6,188 tons. A comparative statement for the two years is shown hereunder :

Note. The difference between the gross and the net output is the allowance for mine consumption and waste. In addition to the above, 1,644 tons of coal was purchased for resale, of which 1,311 tons was purchased from co-operative parties on the West Coast. The disposal, inclusive of stock on hand at the beginning of the year, was as follows : Supplied to—Depots, 51,142 tons ; railways, 31,462 tons ; other Government Departments, 6,449 tons ; shipping, 8,876 tons ; gasworks, 63,200 tons ; other consumers, 6,754 tons : total, 167,884 tons. The total sales of State coal from the Liverpool Mine for the year amounted to 128,290 tons, value £149,416* as compared with 116,215 tons, value £127,839,* for the previous year —an increase of 12,075 tons, with an increase in value of £21,577. The average price realized by the mine on the total sales for the year was £1 3s. 3-5 d.,* an increase of 1 3-sd. on the previous year's average. The total sales of State coal from the James Mine for the year amounted to 39,594 tons, value £46,817,* as compared with 31,763 tons, value £38,766,* for the previous year—an increase of 7,831 tons, with an increase in value of £8,051. The average price realized by the mine on the total sales for the year was £l 3s. 7-7 d.* per ton, a decrease of 9-2 d. on the previous year's average. The decrease in the price realized was due to a larger proportion of slack being sold during the year ended 31st March, 1937. During the year ended 31st March, 1936, the slack on the dump was increased by 1,016 tons, whereas during the year ended 31st March, 1937, the slack on the dump was reduced by 323 tons. The sales of coal, &c., through the medium of the depots totalled 118,587 tons, value £179,843,* as against £105,601 tons, value £158,648,* for the previous year.

* These values include sales made c.i.f. and f.o.b. as well as f.o.r.

8

Output, in Tons,1936-37. I Output, in Tons, 1935-36. Mine. — ; — ~ ~ Gross. I Net. , Gross. Net. Liverpool . .. 132,966 126,810 121,531 115,260 james .. .. 40,690 ; 39,044 34,502 | 33,170