SHIPPING COMPETITION

Rotorua Morning Post, Volume 1, Issue 141, 6 February 1932, Page 2

SHIPPING COMPETITION

In two recent interviews which we have published, overseas visitors have referred to the beneficial results which woulfl accrue to this Dominion from an increase in competition in our shipping services. . New Zealand is perhaps the only one of the British Dominions which labours under the disadvantages of shippiiig services which have so far precluded a healthy and invigorating competition, and the results of that system are at present very evident in the high passenger and freight rates ruling in this country. The infltience of these rates has a very decided and very considerable effect upon the overhead costs of the primary producer and at a time like the present, when overhead costs are one of the chief factors militating against recovery, it becomes increasingly important that some attention should be devoted to methods of remedying the position, and aftording some relief to the farmer. Through continuous repefcitlon the observation that compettition is good for trade is perhaps a little trite. But that does not discount its truth. The incursion of competiton which would force a reduction in passenger and freight rates to the Dominion would unquestionably reduce overhead costs, and relieye the producing community of a proportion of the burden which it is at present carrying. The time has passed when New Zealand can afford to do other than face facts squarely. A gfeat deal has already been said and written concerning the challenge to existing interests which has been issued by an American shipping line in entering into the New Zealand passenger trade. It may not be exactly palatable to the interests which for so long have controlled the shipping traffic to New Zealand, but the faet remains that this challenge should stimulate . competition with a, consequently. beneficial effect Lo the, country. It Would have been pref erable perhaps, that compeition should have come from other than foreign sourqes, but opportunity has been knocking long enough and the fault is II r ' T IT TllllMI 'lllliiMfrl IIIIIMIII IIIMIIHIIIWH—ir— h