FEDERAL SHIPPING CONTROL

Dominion, Volume 10, Issue 3056, 18 April 1917, Page 10

FEDERAL SHIPPING CONTROL

GOVERNMENT'S POLICY / — '■ —. STATEMENT BY MR. HUGHES ■ la a slalemei/t regarding tho control of shipping by the Commonwealth : Government; the Prime Minister (Mr. [ Hughes) says:— _ j Few people realise what the Commonwealth Government has done in the direction of minimising the loss sustained by Australia in consequence of the depletion of the world's tonnage arising from tho war, because few people are sufficiently interested in shipping questions to inquire. Australia has, however, as a matter of fact, given a lead to all the Allies in quite a number of directions, which represents an aggregate saving, 'to the Commonwealth alone, of millions of- pounds sterling; 'and so skilfully _ has the Government, •through, its advisers, organised the limited amount' of freight available, that.Australia, although the most disadvantageously circumstanced of all ,the Allies; hus suffered the least. In tact, she has scarcely suffered at all. . , Cable messages published in the Press almoßt daily have revealed the straits to which other countries have been reduced in order to obtain the necessary tonnage to maintain that trade which was essential for their- well-being. Comparatively little has been said about Australia's predicament, and it will probably come as a surprise to the man in the'street to,learn, what has been- done in. Australia to reduce the stress. Great Britain: has-been glad to follow, \ the... Commoriwealtii's lead in more than one particular. The Federal Government first intervened in the shipping business,, because it recognised that if the trans-' port of the wheat crop were left to the normal agencies a very small portion of the harvest would be-shifted, and that for the conveyance of this portion prohibitive freights would be, charged. Because of this e'ertainty, Mr. Hughes, on behalf of the Federal. Government,/ stepped in, and said that the export of the wholo crop would be controlled by the Government: For this,, purpose he appointed two of the leading firms of Australia (Messrs. Elder, Smith and Co. and Messrs. Gibbsj Bright and Co.) to act as chartering agents to secure the freight necessary for the transport of the wheat. Nobody else was permitted to enter the freight market against them, and by this means that competition which would inevitably have resulted in the raising of. freights was eliminated. Had half a dozen rival charterers been on/the market, they would have paid the rates asked by -(jhe shipping proprietors, who would havu gamed, but the farmer would have lost proportionately. . ... ' , , The Government charterers did not go on the market as private firms, butas the representatives of the Australian Government, and, this position gave them an immense advantage. Probably international, considerations' .will prevent the complete story of how ship owners were induced to carry! wheat against' their will from .being publish,ed. .But it-can be said with perfect safety and propriety that, had >the Government, not intervened many vessels that' carried wheat from Australia would have taken other cargo instead, and many of them would.-have preferred to leave in'ballast rather than take wheat had they been left a free choice of their destinations. Even the price which computing charterers would have offered.' them —and thejj would certainly have had to offer the' world's price— would not. have induced many'of these ships to carry: wheat. But the Government, in wartime, has extraordinary powers, and it did not hesitate to use ' those powers in. order to eecure tho ships required for the transport of the wheat crop.•Nor would the Government consent to see the farmer 'mulcted of the extortionate freights ruling in other parts of the world. The last quotation for 'freight to carry wheat from Argentine to Great Britain was 150s. On. that basis the freight to Australia should be 3005.;' for tho voyage is twice as long; But the? highest rate yet paid by the Commonwealth Government for a wheat steamer is 1205., and the average rate is under 1005... The difference between the Australian rate and double -the Argentine rate is what the community has gained by the Government intervention. Putting" that difference at £10 a toivr the saving to Australia has been something like £18,000,000. Apart from wheat, the. Government did not interfere with other freights. If only kept a fatherly eye on, the whoh . situation. Gradually, however, as.the need for intervention developed,'it ex; tended its beneficial control. It creat 1 ed a committee under the presidencj '.' of Rear-Admiral Clarkson to contro 1 the coastal trade. This committee wai removed from the sphere pf.politicalin fluence/and followed a policy of inter fering as little as possible with thi owners of inter-State trading vessels ii the conduct of their business. Thi

Government provided first that np ship on' the coastal trade which was registered in Australia could ho removed to other waters without permission, thus assuring to the Australian public the maintenance of an adequate inter-State service. Then •it provided that the Tates of freight charged on the coastal trade'should not bo above those ruling prior 'to the war, unless »pecial reason for the increase could be shown. Beyond'these matters of public policy it did nothing'arbitrary. It simply invited the co-operation of the owners in so organising the Jrado that the maximum service could be got out of the vessels available. This has been done, and the public has benefited more than it' knows. '" ■