DECLINING REVENUE

Bay of Plenty Beacon, Volume 6, Issue 99, 17 August 1943, Page 6

DECLINING REVENUE

HARBOUR BOARD'S DILEMMA ! COMPETITION FROM RAILWAYS j "That this board Avlioleheartedly .supports the .sent mien Is raised in the Ifctter of Otago Harbour Board and that the Harbour Board Association be advised, of the fact," such was tire motion unanimous!}- carried at the. meeting of the Whakatane Harbour Board last week when the growing competition of the Railways and the subsequent undermining of Harbour Boards revenue, throughout New Zealand, was fully dealt with by the Otago Harbour Board in a Avell written letter. The letter stated; — "As, you arc aware, railway competition has for many years interfered Avith the trade of a number of ports, and as a result, Harbour Boards after having developed their ports,, have had to watch the goods on which they depend for their revenue. being diverted to the railway owing to the fixing of special rates of freight designed to make carriage by rail slightly cheaper than by sea, irrespective of whether those rates were economic or not. That such rates cannot all be economic is shown by the fact that some commodities are carricd from one port to another at a lower rate than to intermediate stations. Coastal Service Another aspect of the same question is that the. New Zealand coast lends it.scll' to the use of small coastal vessels, wiiich can convoy goods along the coast cheaply and efficiently. The effect of railway competition has been to throw a number of these out of commission. and. to divert their crews to other Avalks of life. New Zealand is bounded by the sea and she must to a large extent depend on the sea fo»r . her communications. It is therefore evident that coastal shipping is an essential industry that should be fostered, and not allowed to languish by reason of compeatition by a State owned service, whose rates can be reduced, apparently without regard to whether they are economic or not, for the special purpose of increasing the tonnage carried on the railways. The; remarks i'n regard to the railways also apply very largely to road transport, and this) aspect will no doubt be considerably accentuated after the war. The detrimental effects of rail and road competition are fc.lt —- (1) By Harbour Boards in the loss of revenue on the cargo, diverted from its usual channel, and on the •ships that carried such cargo, also in the payment of capital charges on harbour improvements now only partially utilised. (2) By the Dominion, in that there is iioav less; inventive to cater for the coastal trade and consequently there are fewer vessels aA railable for national purposes when required, e.g. the present conflict in the Pacific where Britain and the Allied Nations arc so badly in need of small craft. (3) By seamen and waterside workers; in the loss of worlk and Avages. (4) By coastal Shipping Companies Avho, after having built up the necessary organisation to cater for the coastal trade, find themselves faced, with the problem of maintaining their vessels and organisation in the fact of a decreasing volume of cargo. It is desired, to point out that it is not the present position that this Board has in mind —it is the postwar trade, and, it is. felt that V.nless a strong case is carefully prepared now for submission to the proper authorities, the plight of many Boards Avill become increasingly serious if they are subjected to unrestricted competition after the Avar, There is also the completion ol the South Island Main Trunk railAvay to be kept in mind—its implications may avcll include, a furthei' loss of coastwise cargo from South Is'and ports, in that the Department may reduce rates merely to boost, the gross reA'cnue on this secion of the line. I am therefore directed to communicate with you urging that the Association should take in hand now the prepa-ation of the case from a Ha"boit:• Board point, of A'iew and a".so aviange a conference between those concerned, inviting particular'y the Coastal Shipping Companies in order to eliminate uneconomic ruitthroat competition between road, rail and sc'a transport;, Avith a A-iew to fostering and if possible'iricreav.

ing our coastal shipping trade, as the Avar has abundantly proved that shipping is (and always vrill be) our 3£mpire's greatest and most vitally essential industry. It is I'elt that the Association could be assured oL' the co-operation of the Coastal Shipping Companies in any movement which seeks to improve the present unsatisfactory position. They Avould also be in a position to supply a considerable amount of useful information. The Whakatanc Board after discussing the letter decided further that a copy of the Otago Harbour Board's letter be submitted to Mr Sullivan M.P. and tliats such gentleman be advised that this Board wholeheartedly supports the Otago Harbour Board in its contention and that Mr Sullivan be requested to submit this important matter to the ,Hon. the Prime Minister.