C.—2.

STATE COAL-MINES. The output from the Liverpool Colliery showed a substantial increase for the year, while the James Colliery showed a reduction, due to the holding of heavy stocks at the beginning of the trading-year and the unusually warm summer, which affected the household demand. The profit for the year ended 31st March, 1935, after providing for interest and depreciation, amounted to £13,005, an increase of £1,025 on the result for the previous year. A sum of £8,510 was transferred to the sinking fund, leaving a net surplus for the year of £4,495. The Wanganui Depot, which has been showing a loss for several years, was closed in June, 1934. In its place a local agent for State coal was appointed. The rearrangement is proving very satisfactory. Steps have been taken to keep in much closer touch with the Department's customers throughout the country generally, with a view to improving the service given, and increasing business. An advertising campaign has been embarked upon in several centres. As an indication of the results being obtained, the Liverpool Colliery has worked, between the end of the financial year under review and 17th August, 1935, 45 per cent, greater time than for the corresponding period last year, while at the James Colliery the increase is 25 per cent. The employees at the State Collieries, in common with other coal-mine employees, recently received an increase of 5 per cent, in the rate of their wages. The operations of the State coal-mines and State Coal Depots for the year ended 31st March, 1935, are briefly reviewed hereunder. Output and Sales. Liverpool Colliery. —The gross output for the year was 102,484 tons, as compared with 93,769 tons for the previous year, an increase of 8,715 tons. James Colliery.—The gross output for the year was 26,845 tons, as compared with 33,694 tons for the previous year, a decrease of 6;849 tons. A comparative statement for the two years is shown hereunder : —

The disposal, inclusive of stock on hand at the beginning of the year, was as follows : Supplied to —Depots, 38,890 tons ; railways, 26,666 tons ; other Government Departments, 2,818 tons ; shipping 5,947 tons ; gasworks, 51,053 tons ; other consumers, 2,919 tons : total, 128,293 tons. The total sales of State coal from the Liverpool Mine for the year amounted to 99,328 tons, value £110,744,* as compared with 87,104 tons, value £104,191,* for the previous year —an increase of 12,224 tons, with an increase in value of £6,553. The average price realized by the mine on the total sales for the year was £l 2s. 3-6 d.,* a decrease of Is. 7-sd. on the previous year's average. The total sales of State coal from the James Mine for the year amounted to 28,965 tons, value £34,885,* as compared with 28,248 tons, value £41,328,* for the previous year —an increase of 717 tons, with a decrease in value of £6,443. The average price realized by the mine on the total sales for the year was £l 4s. 1-ld.* per ton, a decrease of ss. 2d. on the previous year's average. The decrease in the amount realized and the average price realized per ton is due principally to the larger proportion of slack coal sold. The sales of coal, &c., through the medium of the depots totalled 93,074 tons, value £140,586*, as against 86,176 tons, value £144,025*, 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, 1934-35. Output, in Tons, 1933-34. Mine. —— ; ; Gross. Net. Gross. Net. Liverpool .. .. 102,484 96,880 93,769 88,870 James .. .. 26,845 25,965 33,694 : 32,579 Note. —The difference between the gross and the net output is the allowance for mine consumption and waste. In addition to the above, 887 tons of coal was purchased for resale, of which 652 tons was purchased from co-operative parties on the West Coast.