HIGH FREIGHTS.

Dominion, Volume 6, Issue 1751, 16 May 1913, Page 3

HIGH FREIGHTS.

JEOPARDISING FLAX EXPORTS. EXTRAORDINARY INCREASE. The high freights now being charged on all produce outwards from New Zealand to London were discussed by a deputation of Manawatu tlaxmillers which waited upon the Prime Minister yesterday. The deputation was introduced by Mr. D. Buiek, M.P. Mr. E. L. Broad said the deputation had not come to beg favours of the Government', but merely to offer a suggestion, which, it adopted,"might assist the flax industry. A year ago the shipping companies were charging 455. per ton freight on flax exported to London. That; rate had been increased to 505., then to 755., and now they had been advised that niter July 1 it would be 85s. The deputation wofild suggest that the Government, which subsidised services to Vancouver, San Francisco, and Sydney, should insist on a clause being inserted in every agreement concerning a subsidy tixing a. maximum rate of freight. Mr. Massey: But unfortunately your difficulty is not with those companies, but with those trading to London. Air. Broad: That is so, but there is a possibility of developing a trade with Vancouver. In order to make this possible, lie suggested that the Vancouver boats ought io l:c required to call at AVellington. The freight on flax from AVellington to Auckland was 255. per toil, and this gave Auckland millers a gieat advantage in competing for the Vancouver trade. Other members of the deputation made complaint about the enormous increase in the freight from 455. to Sss., saying that such a huge increase in ono year bred a feeling of insecurity amongst producers. They did not know wliero the increaso was going to slop. " The Prime Minister said members of tile deputation undoubtedly had a grievance, but unfortunately tlio Government was not able to do much at present to remedy it. The Government expended a tctal of about ,£55,000 per year in subsidies to lines of steamers to Vancouver, San Francisco, and Sydney. He was not sura about the Sydney freights, but with regard to the other two runs, the agreements with the shipping companies fixed the maximum freiglit charges on certain ordinary products. No subsidies were paid to the owners of steamers trading to England. It must be admitted that part of the present extraordinarily high freights were due to the increased cost of ships, and the shortage of vessels to cope with the world's increasing trade, but if this sort of thing were to go on there would soon spring up in this country, 'as in Australia, an agitation for State-owned steamers. He hoped that it would never be necessary for the Government to come to the assistance of exporters, but if tlio time should come when the exporters needed protection against extortionate charges, the Government would not shirk its responsibilities. AY'ith regard to the suggestion that AVellington should bo made a port of call for the Vancouver steamers, ho explained that the New Zealand Government was not the only Government interested in that service, and the present arrangements could not, therefore, be disturbed for some time yet.