C—2

Table showing Quantity of Coal exported annually from New Zealand from 1940 to 1945 Quantity. Quantity. Year. Tons. Year. Tons. 1940 .. .. 81,287 1943 .. .. 42,522 1941 .. .. 58,179 1944 .. .. 37,688 1942 .. 54,700 1945 .. .. 21,989 SUBSIDY ON COAL PRODUCTION For the financial year ended 31st March., 1946, the amount paid by way of subsidy on coal production was £1,148,002, made up as follows : tonnage subsidy (including: -provision for increases in mine stores), £748,294 ; subsidy in respect of the additional cost of work on back Saturdays £60,234, on statutory holidays £119,147, and on bonus payments, &c., to workmen not on contract £52,223 ; subsidy on increased cost of miners* tools, £4,675 ; subsidy by way of special payments to meet losses during the previousfinancial year made at uneconomic mines taken over by the State, £108,148 ; and subsidy on miscellaneous grounds, £5,281. Of the £1,148,002 paid out during the year ended 31st March, 1946, the State Coalmines received £489,010, while the privately owned mines received £658,992. At 31st March, 1946, the total sum paid out for coal subsidies since the subsidy was first introduced early in May, 1940, amounted to £3,089,948. In December, 1939, the approximate average price (f.0.r.) of run-of-mine coal was £1 per ton, and the price has been stabilized at that level until the present time. However, during the year ended 31st March, 1946, subsidy payments on coal were made which averaged approximately 9s. per ton, while, in addition, the amount paid under the guaranteed net profits clause of the Waikato Coal-mines Control Emergency Regulations, if distributed over the same tonnage, would average approximately Is. per ton, and accordingly it must be assumed that were it not for payments in respect of subsidy and guaranteed net profits the average price f.o.r. or run-of-mine coal would have advanced by 10s. per ton to 30s. per ton. During the same period the statistical statements of the Ministry of Fuel and Power of Great Britain show that the average proceeds per ton of coal disposable commercially has increased from 17s. 6d. in December, 1939, to 395. 6d. for the quarter ended 31st December, 1945. CO-OPERATIVE MINING, STATE COAL RESERVE During the year 1945 sixteen co-operative coal-mining parties were operating on parts of the State Coal Reserve, Greymouth. The production for the year was 81,373 tons and the number of men employed was 137. In 1944 eighteen parties produced 95,946 tons. Co-operative parties have produced to date 1,988,508 tons of coal and have paid royalties amounting to £95,460 in the aggregate to the Crown. STATE COAL-MINES The gross output from the State coal-mines for the year ended 31st March, 1946 r was 1,024,937 tons, an increase of 262,284 tons as compared with the year ended 31st March, 1945. Mining conditions at Liverpool did not improve as anticipated, the output being maintained at approximately the previous year's figure. Due to fewer days being worked, output at the Strongman Colliery decreased by 6,839 tons. With the exception of a small amount of fallen coal filled out from old bords, the output was obtained from solid places. Numerous faults are still hampering operations.

10