OVERSEAS TRADE

Dominion, Volume 8, Issue 2293, 29 October 1914, Page 7

OVERSEAS TRADE

PARLIAMENTARY COMMITTEE REPORTS INCREASED FREIGHTS AND'SHORTAGE OF SHIPS PERMANENT BOARD SUGGESTED The report of the Shipping Freights and . Charges Committeo wis presented to the House of Representatives yesterday afternoon by the Chairman of the Committee, Sir Walter Buchanan. Following was the text of the report: — "Your committee was appointed to 'exaniine and report -upon such questions relating to freights and charges levied by shipping companies upon produce and goods of any kind, shipped to or from Now Zealand, as it may think desirable or that may be referred to it by the Government.' " The occasion of the setting up of the_ committee was twofold. First, the rise in freights on uurefrigerated cargo of 25 per cent., which was levied by the f hipping companies shortly after the outbreak of the war. The other question, which is of ; much greater importance, was whether there , tvas reasonable guarantee of tliq export trade of the country being maintained during the coming season. There is a large an°d steady increase each year of exports, especially of frozen meat and dairy produce. . . • "At the outbreak of the war the Government offered, and tho Imperial authorities accepted, an Expeditionary Force, and in order that they might bo transported quickly eight vessels having.refrigerated space were commandeered by the Government. In addition to them, three steamers, which usually are available for the transport of New Zealand produce, during the season, were commandeered by the Australian Government. The long delay that took place between the; period when tho steamships were withdrawn from the ordinary trade and the timo of their departure with the troops has seriously accentuated the position. Your committeo have taken evidence from the representatives of the shipping companies trading to and from New Zealand, also from representatives of the frozen moat, dairying, flax, and cognate industries, and have the honour to report as follows: —.

Increase of Freights. "With regard tq the increase in freights, your committee lias ascertained that this docs not apply to either frozen meat or dairy produce, but only to wool, flax, and other unrefrigorated cargo. From the Commonwealth thero has been an all-round increase of 20 per cent. The exporters of frozen meat and dairy produce from Now Zealand are fortunate in escaping any increase. This Is the result of fixed coutracta having been previously made by the parties. The increase of 25 pet cent, on general cargo is- to some extent justified at present by the increased cost of.insurance through the addition of a war risk, extra cost of coal and provisions and probable shortage of cargo on their return trips from .Great Britain; but the committee is strongly of opinion that as conditions become normal the increase- should bo abolished. - The Flax Industry. "It is clear that the increase in freight on tlax, ooiipkul with the reduction in value caused by tho war, will have a. detrimental effect upon that important 'industry, and, as it employs a very largo amount of labour, your committeo is of opinion that the Government should- consider how the industry could be most bencficiallv assisted in order that it might be maintained until normal conditions prevail. Ships Available for Export.

"The evidence given before your committee showed that outside refrigerated Bteamers cannot bo chartered that the shipping available can be made te meet all probable demands foi space for meat, butter, and cheese during the- months of October, November, December, and January. The calculations are based upon an average ol 07 freight carcasses (or their equivalent in dairy produce) por vessel. It may be assumed that tlie insulated.' steamers Stated by tho snipping companies to be available down to January 31, 1915, will bo employed to their full carrying, capacity as refrigerated ships, and that the refrigerated space wil be solely utilised for meat and dairy produce. If this is done, a .comparative analyst of last year's exports of thoso products show that the total shipping available should provide a surplus of Heveral ships which might be retained for the months of February and March, thus materially reducing the risk of a shortage of refrigerated vessels during those months. It may be desirable for tlie Government to bring down legislation to enable them to make the necessary arrangements with the owners and to pay_ compensation for tho delay of the ships lit may be reasonably expected that by tlie time tho refrigerated ships so delayed will have got av ay, t.he commandeered ships will have returned and will be able to take U|> tlieir ordinary running. To ensure 'this the Government should' arrange with the Admiralty and Hie owners for tho return of these ships to New Zealand with all possible speed immediately after the debarkation of the troops.

The Cheese Industry. "The chief difficulty which presents itself to s'our committee relates to the export of'cheese. The refrigerated space for frozen meat and butter being interchangeable", it is comparatively easy to so adjust exports as to meet the position in regard to them. On the' other hand, cheese,' 1 which can only be carried in special portions of the refrigerated space, and does not require a lower temperature than 45 to 50 degrees, presents epecial difficulties. Thp trade in this produce is growing so rapidly that the-shipping companies will require,. in making arrangements for the future, to bear in. mind the very great importance of this branch of our exports. For the coining season we recognise the difficulties of ihe position, and considor- they can only be , met by special consideration on tho part.of the shipping companies, in so anticipating and arranging for elieeso space as to secure' certainty of shipment. "Suggestions . were put before the committee that the National Dairy Association could monopolise_ all the space and exclude other shippers not members of the association. Your committee finds tliat tho association have by letter to the committee expressed their willingness to share the space, aiid to allow other shippers a proportion of tho allotted space of dairy produce Recommendation. "Our inquiries on the matters refcrifid to us lead us to recommend that a permanent board should be established having clearly defined powers of inquiry,regarding the trade industries and .commerce of the country." Sir Walter Buchanan moved that the report bo referred to the Government tor consideration. National Dairy Association. The. complaint made by Mr. W. D. Lysnar at a deputation to the Prime Minister that the National Dairy Associntion controlled the export of all dairy produce to tho detriment of those i

exporters outside tho association, was repeated by tho Hon. A. T. Ngata, Mr. ,0. A. Wilkinson (Egmont) said that this complaint had been successfully answered before the committee. Tho fact was that tiio National Dairy Association was a purely co-operative institution, exporting 80 per cent, of tho dairy produce from the North Island. Experience- had shown that some such co-operative institution was necessary to the industry, and tho evidence showed t'hat it did not act in a manner prejudicial to tho interests of those outside its memborship. •He strongly approved of tlie recommendation that a permanent board should be set up to deal with shipping and freights. Ho referred specially to freights on flax, and argued that they would have- to be reduced, or subsidised by the Government in. order that the threatened extinction or languishing of the industry might be averted.

Mr. G. W. Russell (Avon) said that even the report of'the Committeo showed that it was extremely problematical whether there would be a blockage in the export of frozen cargo during the months of February and March, owing to tho shortage of steamers.. To avert this, the Committeo had made certain recommendations, but if the Government was to give effect to the recommendations of the Committee legislation might be necessary. He believed that the Committee had done good work, and that the Government .would be well advised to give effect to its recommendations if possible.

Increased Freights Justified. Mr. G. V. Pearce .(Patea) said that the Committee _ had been 6et up to investigate the rise in the price of shipping freights. The evidence showed that this increase was justified, and as an increase of 20 per cent, in dairy produce freights had been, made in Australia, it would be wise for the shippens from New Zealand to pay a similar increase, rather than to allow the shortened space available on ships trading to these waters to be filled with produce from Australia. The loss by inoreased freight charges would not be comparable with the loss that would be involved in keeping produce here when good prices could be procured for it at Home. He did not consider that there was any chance of a serious blockage in the export of dairy produce or frozen meat from New Zealand. Mr. G. Witty (Riccarton) said that if the Government were doing.their duty they would set to work to deal with the rings that were exploiting the emnll producers of this country. Hβ thought the report of tlie committee without the evidence taken by the committee was useful, and he would move that the report be referred back to the committeo in order that tho evidence could .lw» attached to the report. After talking for some while, however, Mr. Witty sat down without moving the motion. Mr. J. Payno (Grey Lynn) thereupon moved tho motion. Sir Joseph Ward (Awarua) said he •vas in full accord 'with tho decision' of the committee not to publish the evidence. . The Prime Minister.

The Right Hon. W. F. Maseey said that as it was quite evident that the House would go on sitting for two weeks longor,he would make no apology for saying a word or two. He was glad to hear tho appreciative remarks of members on the work of the committee. He believed the Committee had done very good work, and he. had never known a chairman of a Committee take so much/interest in tho work of his Committee as the chairman of. this Committep. Although he would have liked to see as much x publicity gifon. to the inquiry as possible, wider the circumstances he did not think it. would be prudent or honourable to print the evidence. Reforring to tho subject matter of tho Committee's inquiry, he would.say that while the higher freights were justifiable now, it would be the duty of the board to be set up to see that the higher freights were not charged any longer than tho circumstances warranted. He did not think there had been any such thing as exploitation in New Zealand by rings. The Meat Trust had been doing business here, but so long ae no monopoly was created, it was the duty of the Government to encourage trade will all friendly countries. Tho time might come when it would be necessary tp regulate the Moat Trust, but that time had not lome yet, and if it did come, he would have no hesitation in asking the House to agree to the necessary legislation. He was, very strongly of opinion that the setting up of a Board of Trade would be a wise proceeding, and he was encouraged in this opinion by the success that had followed the setting up of the Board of Agriculture. With regardtj the other recommendations' of tho Committee ho would have much pleasuro in giving attention to the more important of them in the recess. Mr. Payne withdrew his amendment and the report was referred to the Government for consideration.

PUBLICATION OF EVIDENCE. MR. LYSNAR'S POSITION. (By Telogranh—Press Association.) Gisborne, October 28. The following is a copy of a telegram sent by Mr. W. D.' Lysnar (Gishonie) to the Prime Minister, after having received private advice of tho discussion in the House of Representatives on the report of the Freights and Shipping Committee:—"Surprised in view your promise, Shipping Committee against publication of evidence at its own instigation. .If the position is that eonie witnesses object to publication this cannot prevent others of , different opinion from making known to the'public their evidence. I have a complete copy of my evidence, including tho cross-examination, and intend publishing the same. I trust you will re-open the matter in the House to-night, as other witnesses may. be unaware of their privileges."