C.—2.

prospecting-rights over areas sufficiently large to justify substantial expenditure on what, from a financial point of view, can as yet only be regarded as a venture of a most hazardous nature. In the event of oil being discovered in commercial quantities the Act provides that the requirements of the Dominion must be satisfied before any oil is exported. Since the Act came into force I have received seventy-eight applications for petroleum-prospecting licenses covering several thousand square miles of country. Many of these applications overlapped one another, and, after very careful investigation, I recently announced my decisions as to the allotment of specific areas amongst various applicants. I am very pleased to be able to state that already definite action has been taken by one group of important interests. Scientific and technical personnel have arrived in the Dominion, preliminary work in the nature of roading and housing has been undertaken, and a drilling-plant of the most modern and efficient type has been landed and is about to be erected in the Poverty Bay District. COAL-MINING. There were 172 coal-mines operating in the Dominion in 1937. Eighty-two of these mines are situated on freehold property and produced 993,853 tons or 44 per cent, of the total output. The remaining 90 mines are situated on Crown lands and produced 1,283,946 tons, or 56 per cent, of the total output of 2,277,799 tons. The annual production of coal since 1930 has been as follows : — Year. Tons. Year. Tons. 1930 .. .. 2,542,092 1934 .. .. 2,060,315 1931 .. .. 2,157,756 1935 .. .. 2,115,184 1932 .. .. 1,842,022 1936 .. .. 2,140,217 1933 .. .. 1,821,258 1937 .. .. 2,277,799 The increase in output for 1937 is 6-43 per cent, above the figure for 1936, and since .1933 a recovery of over 25 per cent, has taken place. The quantity of coal imported into New Zealand in 1937 was 116,499 tons. I am gratified that our local output has shown an increase for the fourth year in succession, and I am also pleased to point out that in only four years in the country's history have our mines produced more coal than in 1937, these years being 1927, 1928, 1929, and 1930. The position must be regarded as very satisfactory in view of the inroads of competitive forms of power into the industrial field during the past ten years. I want, of course, to see the position of the coal-mining industry still further improved, and I again appeal to gasmaking concerns, which are the principal consumers of imported coal, to do their utmost to help our local industry. The output of the several classes of coal mined in each inspection district is summarized as follows : —

It will be noticed from the above tabulation that a very substantial increase in output was obtained from the West Coast mines. In 1937 the West Coast supplied 222,867 tons of coal in excess of the figure for 1935, representing an increase of nearly 30 per cent, in two years

4

Output of Coal during 1937. Total Output Class of Coal. Northern West Coast Southern „ j° District District District Total. no . (North Island). (South Island). (SouthIsland). Tons. Tons. Tons. Tons. Tons. Bituminous and sub - bitu- 41,694 928,290 .. 969,984 50,806,570 minous Brown .. .. .. 736,804 45,598 403,918 1,186,320 32,178,779 Lignite .. .. .. .. 1,340 120,155 121,495 5,269,993 Totals for 1937 .. 778,498 975,228 524,073 2,277,799 88,255,342 Totals for 1936 .. 795,837 844,570 499,810 2,140,217 85,977,543