FARMING AFFAIRS

Bay of Plenty Beacon, Volume 10, Issue 95, 17 February 1947, Page 4

FARMING AFFAIRS

LAND RATES & PORT CONTROL CENTRALISATION OF SHIPPING

A recent report on the decentralisation of ports in New Zealand and an examination of the effects of the establishment of secondary ports has been prepared by the research department of the Federation and circulated to provincial executives. While objective in its analysis and recommending that any approach to the problem should be made with extreme caution, the report says that there appears to be no guiding line which can generally be applied. No general policy has, in consequence, been laid down, for every particular case should be regarded on its merits after full consideration of all the factors involved. Whether or not a policy of centralisation or ( decentralisation is decided upon, the report does claim that it is time the shipping companies made some effort to reduce -freight rates so that New Zealand will be able to compete as favourably as possible with other fo'od producing countries when the food situation becomes normal. One argument used in favour of the reduction in freight rates is the profit situation of the major shipping companies. The account of the P. afid O. Coy. are analysed and show that, after paying taxes, that company’s profits have increased over 300 ? er cent, since 1938-39. The companies, however, contend that the cost of building ships today is 75 to 100 per cent, higher than in pre-war days and that the reserves built up from profits made during the war will be insufficient to replace ships lost by enemy action. Most interesting point raised, from the farmers’ point of view, is probably the analysis of rates levied on land by the various New Zealand Harbour Boards. The table shown below giving the annual amounts levied by Boards, proves that much secondary harbour development has taken place in part at the expense of the land. The table shows clearly that certain harbours have been established in New Zealand where nature never intended them to be established, thus creat-r ing in most cases a permanent and increasing charge on the land. Land rates are levied by most of the secondary ports to provide finance additional to that obtained from harbour dues.

The following table shows the rates secured for the year ending September 30th, 1937, 1942, and 1944. No figures are available after 1944.

Bay of Islands £4, £2252, £2421.; Whangarei £4691, £6, £7; Whakatane £3682, £3261, £3192; Tolaga Bay £4474 ,£4943, 4512; Gisborne £37,602, £38,467, £41,643; Wairoa £6235, £4682, £6347; Napier £B, £17,9595, £18,307; New Plymouth £12,286, £75, £57; Patea £4615, £7534, £7; Wanganui £16,333, £22,877, £24,182; Foxton £459, £989, £601; Nelson £1387, £5063, £5206; Motueka £lO9l, £1314, £1392; Hokitika £789, £IO3B, £879; Timaru £9752, £11,497,.£11,513; Oamaru fill--594, £10,328, £10,304; Mokau 103; Opunake £2901. A specific example of how secondary harbour development takes place partly at the expense of the land is that of New Plymouth. The report quotes an estimated deficiency of £20,000 at New Plymouth for the year ending September 60, 1947. That deficiency is. to be met partly by increasing the harbour rate by 50 per cent, and levying by way of rates to an amount of £13,000 That position has arisen in New Plymouth because it will take approximately £38,000 to overhaul a dredge and repair wharves. It is also pointed out in the report that Government subsidies are being paid to several Boards to compensate for the loss of harbour dues paid by overseas shipping. The loss was due to the policy of centralisation of shipping at the main ports to expedite the turn-round of ships during the war. The subsidy is paid out of the Consolidated Fund and is solely for loss of overseas shipping, not to reimburse Harbour Boards for increased costs. In 194344 these subsidies totalled £24,473 made up as follows:

Oamaru £1500; Napier £6000; New Plymouth £9000; Bay of Islands £1344; Wanganui £6629. For 1944-45 the total subsidy was £39,896 allocated as follows: Timaru £5300; Gisborne 5000; Wairoa ' £225; Napier £10,000; New Plymouth £15,000; Wanganui £4371. The report is a full one and was’ prepared under instructions from the Dominion Council following on receipt of a remit from the Auckland Provincial Conference urging decentralisation of importation by declaring secondary harbours as ports of entry.