THE COAL BILL CRISIS

Daily Telegraph (Napier), Volume 59, Issue 35, 13 March 1930, Page 4

THE COAL BILL CRISIS

Ari interesting political situation is provided by the defeat of the Labour Government at Home where a Conservative amendment deleting the levy on behalf of exports fi-om the Coal Hines Bill was carried by 282 votes to 274. The reverse is not to be wondered at for the bill, which has been on the stoclis since early in December, raised a chorus of hostile criticism that has continued since its ap"pearance. The Government is in a difficult position for Mr Eamsay MaeDonald is determined to proeeed with his programme until a vote of censure is passed on the general question, in which case, of course, he would hand in his resignation. To produce a measure that would appeal to both sides is almost an impossibility and no Government eould frame legislation that would pass such a test, for the division of opinion hetween mineowners and miners at Home remains almost as wide as when the prhlonged stoppage occurred in 1926. Therefore the Government aimed at a compromise that would not make either side hoptile but it at once aroused antagonism from outside the coal industry because it paved the way for an increase in the price of coal to the domestic consumer. In -the past three months the Coal Bill has been the subject of severe criticism and much negotiation between the varied interests. Some of the salient features of the measure includp the reduction in the working day of the miner by half an hour in place of the full hour needed to restore what was taken away By the late Government 's legislation. It proposes the establishnient of a National- Wages Board, something on the same lines as the authority regulating the wages of railwaymen. It intends a central authority to regulate the production and distribution of eoal and -to control the domestic price of it. In addition there is provision for a domestic subsidy to save specified industries from the anomaly of having to meet the attacks of foreign competitors enabled to buy British coal at rates lower than the domestic price. By arrangement with the Biberal Party, the Government agreed to postpone the part of the bill dealing with the marketing of coal until the rest of the bill had heen disposed of, that is, until the miners have beve granted a working day of 7| hours and a national board of control has been established. The present difficulty has arisen on the question of the export levy. It is held that although the domestic consumer may be made to pay more for coal, it would he disastrous to the export trade if any attempt were made to increase the prices charged to the foreign buyer. Contracts abroad are made against free competition from a dozen other eountries. British coal has a high reputation but it cannot stand against price-cutting. In addition it is contended that to sell British coal abroad at artificially low rates would, in- effect, be to offer a bountv to foreign industry as against. British. Iron and steel have been cited as the two industries most likely to be affected and the possi-' bility is to be met by a subsidy to enable those industries affected to be supplied at the export rate. On this point, however, there is the possible development 'that foreign Governments would follow the British lead and would subsidise the coal of their own eountries. This would soon restore the relative positions, nothing would be gained, and many budgets would be charged with huge expenditure for no good result.. To summarise the proposals more briefly, the consuming public is really to be asked to pay more for its coal, to the comhined advantage of the mine-owners and the miners. In 1926 the miners fought and lost an exhausting struggle on the slogan, "not a .minute on the day — not. a shilling off the pay," and the "reply to this was that the industry could not riieet the ■ demands that were being made. The same difficulties are still apparent to-day." It appears an increasingly difficult impasse that will possibly only he solved by an appeal to the electors. • From the* cabled summary of the dischssion in the House of Commons, it seems quite _ possible that this eventuality will be resorted to. .