LINES WANTED 10% INCREASE

Press, Volume CVI, Issue 31107, 9 July 1966, Page 1

LINES WANTED 10% INCREASE

(Special Correspondent N.Z.PA.)

LONDON, July 7.

Representatives of the New Zealand Tonnage Committee, the negotiating body of the Conference Lines, said today they had sought a higher increase than 7f per cent for carrying New Zealand’s meat, dairy produce, and fruit imports.

They sought an increase of “around 10 per cent.” The committee said agreement on 7| per cent was “fair and reasonable in the light of the subjects being discussed.” Costs arising from the seamen’s strike were not considered in the discussions. The formula of figures used, covered the period up to last December, and “known” increased costs since that date.

Both parties had decided that increased labour costs, which might come about because of the strike, should be discussed during the next annual round of talks expected to take place in New Zealand next year.

The committee estimated; that the increase would cost: the producer boards an addi-l tional £1,472,000 for the ship-; ping of refrigerated cargo. Asked what steps might be taken to seek or impose comparable increases on British! exports to New Zealand, the committee member said: “This is currently under discussion with the Australian and New Zealand Merchants’ Association in London, where the views of New Zealand’s Associated Chambers of Commerce can be represented.” A decision was likely within the next 10 days. Asked what the additional cost would be if the 7| per cent increase was eventually applied to all New Zealand’s import and export trade, they estimated a figure of about £3.25 million.

The committee said a rate for general cargo shipped from New Zealand would be announced after freights on

wool had been discussed in Wellington next week. The committee emphasised there had only been seven rises in freight rates since 1951—five since 1957. This averaged an annual increase of just over 3.2 per cent since 1951 —“less than the average annual rate of inflation.” | The lines were “very susceptible” to rising costs because of the high labour content on their ships. Of New Zealand's total freight bill of £BO million, the Conference Lines received slightly more than £3O million.

“Something like one-third of the freight charges earned from New Zealand is spent in New Zealand by the lines on cargo-handling and ship duecommittee members said.

| Questioned on progress ! made on recommendations I contained in the 1964 streamlining report they said they supported all moves aimed at ‘reducing costs. Rationalisation

of services was being achieved. The next big savings could come through improved handling at both New Zealand and British ports. The committee was not altogether happy that progress on the report was proceeding as quickly as it might. The “peak” periods for the shipping of refrigerated cargo from New Zealand were also expensive and the committee would support any moves to smooth out these “peaks,” although the lines were not responsible for building storage facilities at New Zealand ports. The increase in New Zealand’s primary production was also adding to the problem of shipping at peak periods, but it was not expected that the seamen’s strike would affect new season’s exports.

Present at the conference were Mr C. A. W. Dawes, chairman and managing-direc-tor of the New Zealand Shipping Company, Mr J. A. MacConochie, chairman and man-aging-director of the Shaw Savill Line, Mr J. H. Cook, chairman, and Mr J. R. Shorter, deputy-chairman and general manager, of the Overseas Shipowners’ Committee in Wellington.