C.—2.

From the wells at Moturoa on Petroleum Prospecting License No. 7 held by New Zealand Petroleum Co., Ltd., 95,841 gallons of crude petroleum oil were obtained during 1940, while from the Kotuku field on the West Coast of the South Island, New Zealand Oil Concessions, Ltd., produced 80 gallons of petroleum oil under Petroleum Prospecting License No. 20. The Dominion's total production of crude petroleum oil to 31st December, 1940, is estimated at 3,084,002 gallons. COAL-MINING. There were 141 coal-mines operating in the Dominion in 1940. Sixty-two of these mines are situated on freehold property and produced 998,885 tons, or 40 per cent, of the total output. The remaining 79 mines are situated on Crown lands and produced 1,517,214 tons, or 60 per cent, of the total output of 2,516,099 tons. The annual production of coal since 1930 has been as follows : — Year. Tons. Year. Tons. 1930 .. .. 2,542,092 1936 .. .. 2,140,217 1931 .. .. 2,157,756 1937 .. .. 2,277,799 1932 .. .. 1,842,022 1938 .. .. 2,222,088 1933 .. .. 1,821,258 1939 .. .. 2,342,639 1934 .. .. 2,060,315 1940 .. .. 2,516,099 1935 .. .. 2,1.15,184 During 1940 the quantity of coal imported was 64,860 tons, or 46,687 tons less than in the year 1939, whereas exports (81,287 tons) were 37,297 tons higher. Thus on the normal balance of imports and exports there was 83,974 tons less coal available for local consumption. The production for the year under review of 2,516,099 tons represents an increase of 7-4 per cent., or 173,460 tons over the previous year, and the output per miner employed underground was 7 tons higher at 668 tons. Similarly, production for each man on the pay-roll in 1940 was 499 tons, an increase of 7 tons per man over the 1939 figure. The substantial increase in production is of itself evidence of the response of the coal-mining industry to my appeals for greater efforts to fulfil the needs of industries and domestic consumers. Early in the year serious slips and floods in the North Island and on the West Coast of the South. Island completely disorganized the coal-transport system and the pits were thrown idle for long periods on this account. At the same time production of coal was held up in Australia and it was found necessary to provide increased quantities of native coal to bunker vessels carrying food and produce to the Old Country. The winter months were faced with a serious depletion of stocks, and it is to the credit of the coal-miners that they worked an additional day each, fortnight at ordinary rates of pay to enable industries to function normally and to ensure sufficient coal for the householders without recourse to rationing. In 1935, when the present Government came into office, the output of coal was 2,115,184 tons, or 400,915 tons less than the quantity won in 1940. Thus in a period of five years coal-production lias risen by roughly 19 per cent, to keep pace with the increased demand which has been occasioned by the Government's policy of encouraging industrial development and of ensuring better living standards for the general community. Some idea of the heavy increases in industrial consumption of coal may be obtained when it is recognized that last year the railways used 145,434 tons more than in 1935, and other .industries show an increase of over .150,000 tons in. coal burnt. In 1939 only 16,000 tons was required for generating electricity. This rose to 45,000 tons in 1940, and the requirement for the current year is estimated at 200,000 tons. Domestic consumption of coal is variable, being greatly influenced by weather conditions. The indications are for a fairly substantial demand for coal for household use this year,

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