GOAL FREIGHTS

Dominion, Volume 8, Issue 2561, 8 September 1915, Page 6

GOAL FREIGHTS

* GRIEVANCES OF MERCHANTS AGAINST PREFERENTIAL RATES NO REMISSION POSSIBLE Certain against the 10 per cent, incrcnso in la ilw-«y freights as affecting coal wore mado to the .Minister for imaiice (Sir Joseph Ward) by a deputation representing the North Canterbury Coal Merchants .Association. The deputation was introduced by the lion. A. L Uerdmaa. • Mr. 1\ M._ Cleary, Christcliurch, directed the Ministers attention to the competition of tlie State coal depots, wliich, lie said, affected the merchants considerably.. Die Budget proposed alO per cent, increase on coal raflago, and this, lie said would affect the Christcliurch merchants very materially. They did not object to taxation for war purposes as it was recognised that more money had to be obtained, but they held the opinion that the state coal depots should be put oil a payable basis. He contended tuat the State Coal Alines Department was being conducted at a loss. Tho merchants took up the stand that tho State competition was unfair, and tliey advocated that the Department should be placctl on a pay in" basis. . Mr. D. Reose drew attention to the preferential railage rates existing at tho present time. Ho quoted coal railage rates in tho South Island to support his argument against preferential freights, which enabled certain mines, owing to cheap rates, to dump large quantities of coal into Christcliurch. New .Zealand coal had a preference over Australian ooal, and he was of the opinion that tho Government should consider the whole question before the Otira tunnel was opened. Captain Hull, Wellington, representing imported coal interests, said there was a tremendous preferential competition in. regard to railage rates. ■ Huntly coal railed to Wellington cost 12s. 7d. per'ton freight, while a ton of Newcastle coai railed tho same distance tuid to pay 2os. 9d. freight. He considered that this rate was not fair to gas companies and people in the country who required steam coal. In reply Sir Joseph Ward stated tiiat the matters brought before.him. by.the deputation were questions for the Minister of .Mines and the Minister of Bailways respectively, and he would send each Minister a copy of the representations that had been made to him. They would each deal with matteis of policy affecting their Departments. He would' not interfere in that respect, but ho could tell tho deputation plainly that there was not the slighest chanco of tho Government abolishing preferential rates on the railways. Regarding preference to local coal as against imported coal, this was done for the protection of our own industry and for the sake of providing employment .for our own people, and for the development of our own resources. As a matter of fact, another deputation -was coming from the north asking for a heavy duty to be put on Newcastle coal. He believed that the deputation now interviewing him would sooner remain in. their present position than liavo such a duty imposed. He was quoting this to show fhom the difficulties that were in tho way. As to the State coal depots, lie could hardly understand that a previous Minister had promised that they should be closed down. He was certain that no such step would be taken; The State coal mines and depots were a fixed policy of tlie country, and he did not wish the deputation to go away with the idea that the Government might implement the alleged promise of a Minisor made some years ago. The State Coal Mines Department should be placed on a payable basis, but there was no chance of its abolition. As to the policy of the Department, that was a matter for the Minister of Mines, and he t would place tho deputation's views before the Minister. No Rebate Possible. | ■Sir Joseph Ward definitely informed the deputation that the Government .would not rebate anything; in connection. Tvith the ten percent, increase which had been decided upon for railway freights. He wanted them to understand that that was absolutely definite. The Railway Department had to bring iii the full amountthat the Financial Statement foreshadowed. Although this, might be a hardship on both local and imported coal dealers, the increase of rates, affected people in other directions, but it must bo remembered that the war had causwl.a tremendous increase in expenditure, and the country had to provide the money. The Government was acting on behalf of all the people of the country; it wanted, the money, and must have it. It • was unpleasant for the Government to have to impose this extra burden, but it had to ask users of the railways to provide a certain amount, and the coal merchants, would have to do their share cheerfully. The question of preferential rates in regard to long distances, as compared with short onesi was a matter for the Minister of Hallways. Every country in tho world had to adopt a similar policy in this matter. It was the business .of the Government Railways to jet freightago from Huntly w elsewhere. If the railways got higher rates . for shorter distances, it must be remembered that that was always the- case with various classes of goods where there was no competition. It had always been the business of tho Railway Department to get lower freights for long distances when they liad to compete with sea-borne carriage. If a different ■ policy were introduced in New Zealand, it would be foreign to tte methods adopted in every other part of the world. Tho . railways had to be worked on commercial lines, and that was why preferential rates were charged. It was absolutely essential that the. railways should get the tuaffic, and that was why what'appeared to bo anomalies in all railway tariffs existed. After the War, When the war was over and the Government was in a.position to know exactly the financial requirements of the country—which it did not know definitely now—the taxing proposals would then be considered. A new railway tariff was being prepared under the direction of th<j Minister of Railways,. and would .bo brought into operation after tho war was over,' and it would be found that there would be a reduction in some directions and increases in others.