THE SHIPPING PROBLEM

Dominion, Volume 13, Issue 166, 9 April 1920, Page 8

THE SHIPPING PROBLEM

A SUGGESTION i (To the Editor.) ■ ' Sir—At the coming conference of thoso iv interested in-primary production, it i 9 proposed to fully discuss tho above, and endeavour to formulate proposals which will put after commandeer freights on a cheaper basis. It is accepted by all who have taken !, - the slightest interest in- tho matter, .that 0 a very large amount of capital, or credit, is required to put up an effective figlit agains.t; the monopoly, in shipping, ■which is;;itow known to exist.' State ownership has been suggested as the ; only- remedy- by some, while others pin their faith tq a co-operative company forme i,,by those directly interested. State 1 ownership" of shipping has the m- -- heriint. danger, common to all State i .commercial ventures, of being made the •. 'plaything of politicians and party polls' . .-ties.. The. weakness of a private comI J pimy I think-will be found in insufTi- \ ciency of capital. i" For the -purpose of eliminating as far ! ■ as .possible, political influences, while I, giving'assured capital, or credit, I have . ■ for. soine"'ti'me now given careful considefe'ti'o'ri. to "the feasibility of Parlia- - menf giving'to producers powers as conh tained jn the 'present day Local Bodies -Acta-.and "hydro-electric Acts. ,7 1 lW' tdars boroughs have been going into highly commercial ventures, such as lighting, tramways, etc., under powers - conferred'by Parliament. Under tho ' - recent Hydro-Electric Bill, this power V has..been greatly extended. The Munif cipal-Act gives powers to boroughs, or cities, to levy' rates for tho purpose of building, or purchasing, ferry steamers, as ttill- s as t -other distinctly commercial ; u T dertakings.-Is there any reason against : : tho same powers being given to producers of primary products? I suppose , it would be quite fair to assume that 1 per cent, of our prim- ' :are produced in the counties i of New Zealand, leaving perhaps 5 per i cent.--to-be produced within borough ! limits ' A glance at the valuations will | show that.'whilo boroughs in New Zeitjv land have only an unimproved value of i. seventy-two millions, counties have an unimproved total of over one hundred j_ and .eighty-six millions. On the other ; .hand while boroughs have pledged their ? '"assets;to; borrow to the extent of thirteen i millions, counties onty show an indebti edness of-barely two millions. Of course ? ■ th"^e- : 'are other directions in which j county assets have! beon pledged, such j ' as harbour! boards, river and water districts, etc., but tho total is small as ■■■ compared with boroughs. i A farthing rata on tho -unimproved ! value of county rateable lands will proi . dnce interest and sinking fund at 6i per . cent, on three millions. To make this clearer to producers "it would mean a I fraction over .£1 per annum on every | ' .£IOOO of unimproved value. I believe it wouftt be safe to say that the diiferencb farmers will pay in 1920 as against .1913 in .woolsacks alone, would more th'air pay the interest on'the abovc- ;; mentioned sum. The present powers ; conferred upon local bodies gives the ;. right to pay cost of raising loans and . firit year's interest out of loans. Probably an assured credit of fonr, or five, times the three millions I have mentioned may bo required (as time goes on) if we seriously tackta the shipping mono- , poly, but, in my opinion, if rural landholders once voted their willingness to ' rato themselves for the lnrgcr total I • have. mentioned, it would place in oui ' hands the greatest weapon possible while under skilful management the venture • would cost them little or nothing in the I ■ way of a levy_ for interest purposes. J The above is a mero outline of an , idea which I believe has possibilities ■\ equal to hydro-electric or other cornmer- ■ chl ventures, which are being carried j bv large majority votes of those interested-. I believo if something of this, '. kind is not attempted, it will only be a short time before we havo the cry for a State shipping programme. Prim- / ary . producers in my humble opinion i should fight shy of State shipping or export taxes. - Both suffer the same dis- ' ability as far as the farmer is concerni- ed—l am, etc., ALEX. D. M'LEOD, M.P. ■" ' , Mangapaio, April G, 1920.