C.—2

SUBSIDY ON COAL-PRODUCTION For the financial year ended 31st March, 1943, the amount paid by way of subsidy on coalproduction was £370,395. The total sum paid out in this way since the subsidy was first introduced in May 1940, amounts to £713,388. These figures include subsidies on account of coastal shipping freights' on coal and for additional cost of mining stores, as well as for increased rates of wages. The amount paid out in respect of wages alone was £302,240 for the financial year, the total to date being £549,456. , . ~ ■> ~ , The trend of coal-mining costs is definitely upwards, and this is due to the high proportion ot unskilled labour employed, the persistent and heavy increase in price_ of mining stores overseas, together with the implementing of the policy of adopting mining methods aimed to obtain the maximum extraction of coal. Again, heavy increases in consumption by many large coal-users operating under favourable price contracts prior to price control have operated adversely in respect of many collieries, which have been obliged to appropriate a much higher proportion of total production to the low-price market, thus seriously reducing the average selling-price and capacity to earn profits. These matters are now under review by the Mines Department, and it is not unlikely that m many instances it will be found that increased subsidy will be essential to enable the industry to function efficiently. COAL-MINES COUNCIL Important work was carried out by the Coal-mines Council during the year, mainly in the sphere of adjudicating on coal-mining disputes and in the settlement of terms and conditions of employment generally. MINING CONTROL The task of surmounting immediate problems of production, including man-power and housing, and of distribution, with its attendant difficulties of transport, as well as the supply of materials vital to continuity of production, most of which come from overseas, has been no light one, but it has been accomplished with some measure of success. A policy of planning ahead of immediate needs and thus anticipating reasonable future requirements, and of seeking and maintaining the good will of all sections of the industry rather than the arbitrary imposition of control directions, has been the keynote of the Mining Controller's work, and the results are reflected in the measure of achievement which has been attained in dealing with a problem which has taxed the capacity of the authorities in all parts of COAL-MINERS' RELIEF FUND The Coal-miners' Sick and Accident Funds having been abolished as from the Ist April, .1926, and incorporated in the Coal-miners' Relief Fund, all accident-relief payments are now made from the latter fund, which is administered by the Public Trustee. The rate of interest allowed on the fund was decreased from 4 per cent, to 3 2 per cent, as rrom the Ist April, 1933. , „ . „„_ n The interest earned for the twelve months ended 31st March, 1943, was £571, as against 167J for the previous year, while for the same periods the receipts from the Jd. per ton contributions were £5,346 and £5,544 respectively. The total expenditure for the year ended 31st March, 1943, amounted to £9,284, as against £9,386 for the previous year. on * The amount standing to the credit of the fund at the 31st March, 1943, was £14,410, as against £17,777 at the 31st March, 1942. PERSONS EMPLOYED IN OR ABOUT MINES AND STONE-QUARRIES AND IN OIL-PROSPECTING OPERATIONS

The following table shows the number of persons employed in each inspection district during 1942 and 1941 :-

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Inspection District. Totals. Classification. , TI , „ , J Southern Increase Northern West Coast (of /jj egt Q f g out h 1942. 1941. or (North Island). South Island). | Xsland). Decrease. Gold, silver, and tungsten ore 565 659 337 1,561 2,325 Dec. 764 Coal . .. 1,826 2,298 873 4,997 4,991 Inc. 6 Stone - quarries under the 1,110 80 369 1,559 1,972 Dec. 413 Stone-quarries Act Silica .. ■■ 2 4 6 8 „ 2 Cinnabar .. • • 20 .. • ■ 20 " Iron ore .... 12 3 .. 15 21 „ 6 Manganese . . ■ ■ 3 . • ■ • 3 ,, Pumice .. • • • • • • • • " \ Fuller's earth • • 1 • • ■ • J '' Diatomaceous earth .. 1 • ■ • ■ * ec " Bentonite .. • ■ 2 ., • • •• Serpentine .. .. 16 ■■ « « *«■ » Asbestos .. • • • • , Dolomite 3 3 4 Dec. Clay •• 2 3 5 b „ i "l98 J* !! '262 174 In! 88 Totals .. .. 3,756 3,121 1,586 8,463 9,557 Dec. 1,094