EXPORT OF PRODUCE.

Taranaki Daily News, 1 July 1920, Page 7

EXPORT OF PRODUCE.

DIFFICULTIES OF SHIPPING. « 1 c PROPOSAL TO FORM CO-OPERATIVE t COMPANY. i t The necessity for producers having * some measure of control regarding t!ie ships that carry their produce to the markets of the world formed a subject c of discussion at the annual conference j of the National Dairy Association at „ Palmerston North last reek. The dis- ( cussion was opened hy Mr. H. D. For- j »yth (Eltham). . c A member of the executive moved in ( ] accordance with notice of motion: "That j this meeting is of opinion that the time ( has arrived when the Dominion pro; P ducers should along with our Govern- ] ment have a controlling interest in a f fleet for the carriage of our produce, and that it be a recommendation to the ex- c ecutive of the N.D.A. to co-operate with j the South bland Dairy Association, also £ the wool, meat and other producers to i approach the Government with a view i to getting financial assistance or back- t ing and legislation providing for a ievy ] on all exports to provide funds for the ] purpose of obtaining an assured and re- i liable shipping service at reasonable 1 rates of freight, or establishing an inde- < pendent shipping line if such becomes < necessary." ' Speaking to the motion, Mr. Forsyth 1 said that the idea was by no means a • new one, having been for a long time < in the minds of the producers, who now considered that the time had arrived ] when the producers of the Dominion * should hold some controlling interest in 1 the shipping of their produce. They J had co-operated in the manufacture of ] their produce, in the manufacture of \ boxes and crates for packing and in the ' matter of cool storage, and they were further proposing to co-operate in the j marketing of their produce, but there , was a big gap to be filled in, that of the ; water carriage of their produce from the ' Dominion to the Home country. Much ' as they had already co-operated they would.be at the mercy of the sh'ipping companies until they had bridged thu space that separated them from the consuming world. In order to obtain the funds necessary to have a controlling interest in the shipping of their product l , he suggested that they should first approach the Government with a view to having an export levy or tax placed on all produce exported, and that the funds accruing therefrom could be credited to the various, companies in the shape of shares in proportion to the amount contributed. One per cent on £30,000,000, which was a conservative estimate of the value of our produce, would bring in £300,000, whilst 2J per cent would bring in £750,000 per annum, and this, with a sum from the Government by way of assistance, would soon secure a controlling interest in a fleet for the shipment of their produce. If they had contributed 2J per cent of the value of their exports during the past five years they would pow have had. a sum in the vicinity of £4,000,000, which would have purchased from 9 to 12 vessels for the carriage of produce. It appeared to him that the only practical and satisfactory solution to the present shipping difficulty and the future shipment of their produce would be to have a controlling interest in a fleet, or to own their own ships. Mr. W. D. Powdrell, M.P. (Hawera), in seconding, said that a somewhat similar resolution had been passed at a previous t meeting. He referred to the high increases in freights, showing that the freight on beef, which was 9-10 d par pound before the war was now 1 11-16 d; mutton 11-16 d, now 1 13-lGd; lamb 3d, now 1 15-lBd; cheese 9-18 d, now lid; | butter per box 2/6, now 6/4 less 5 per i cent. 'Bates had gone up ridiculously! high, even taking into consideration the increased cost of wages, coal, boats, etc. a£d the combination of shipping companies that had taken place would only increase the difficulty. It therefore behoved them to help themselves. ,He .referred to the success of the"Gisborne effort, pointing out that while the boat had cost £354,000, she had earned £29,000 on the way out, and the freight Home was worth £90,000, so that while the expenses were high the profits were large. He did not know of any industry that could help so much in the direction of getting Dominion producers ships as the dairy industry. Co-opera-tion Was, he considered, what the the world wanted to-day. They want-

Ed the workers with them, so that if there was any profiteering all would participate, and the workers would be better satisfied than if kept in the dark. Mr. J. R, Corrigan (Hawera) hoped that the resolution, if carried, would be given effect to, as a similar resolution had previously been carried and had never been,. All could see that they had lost heavily through not having a controlling interest in the shipping of their pro-

duce. The dairy industry had about one-third of the exports of the Dominion, and if they were only to co-operate with the other producers, could make their presence felt by the Government in tbjs important matter. The move was, he felt, on the right lines when it came from the dairy producers, and when the resolution went forth from the

representative gathering it would soon

get the backing of the other producers of the Dominion. If producers were to secure their own boats, it would have a tendency to keep freights down. Mr. Bassett (Northern Wairoa) considered that a committee should be elected who could confer with other portions of the farming industry. Mr, J. C. O'Rorke (Oaonui) asked if Mr. Powdrell could tell the actual loss caused to the producers by the extortionate charges of the shipping companies.

Mr. Powdrell said that he had not gone into that question, but while the direct losses were great it y?aa impossible to estimate the indirect losses. Even if they only owned a few boats it would be helpful in the next contract they were likely to make. Mr- T. Moss (Newman), while in sympathy with the proposal, said that the resolution had one objectionable feature in that the levy was really a tax, and it was establishing a vicious principle to ask the Government to introduce a taxon the dairy farmer. There was, he said, hardly a labor union but would make capital out of the proposal. He pointed out that producers were not the only persons who used the ships. Merchants also would get the benefit of them. He considered that if all sections of the farming community were to amalgamate, as the Gisborne farmers had done, there should be no need to go to the Government for assistance.

Mr. J. R. Corrigan said that if they asked merchants to come in they would get the,control, and the producers would be no better off. The producer would have a say in fixing the freight oh import!

Mr. J. B. Marx (Mangatoki) did not think the levy need be looked on as a tax. The Government could co-operate with the producer and could issue bonds at face value and stand behind them, placing the levy to the credit of the companies the bonds were got for. In "time these bonds would be redeemed and the companies would issue smaller bonds to their individual shareholders. This was a case where the quicker they helped themselves the better. Mr. Gibson (Rahotu) also held that the tax would introduce a vicious principle, and there was no knowing where it would end. At present this was a producing country, but there were many, even the farming community, who would like to see it a manufacturing one, and 6ther interests would then crop up. He did not favor putting themselves in the hands of the. Government. If the producers of Gisborne could purchase one ship, surely the producers of the whole , Dominion could purchase half-a-dozen ships. Mr. E. Harding (Northern Wairoa) did not think producers realised the seriousness of the position. A committee should be appointed from the meeting I with power to consult representatives from freezing and other producers with the object of forming a shipping company, purely in the interests of the producers. If the commercial interests were to como in that could be done later. He deprecated relying on the Government, as he thought the Government had enough to do to deal with other important questions:, and the matter would break down by its own weight. Action should be taken at once on concrete lines. i Mr. Brecon said that the producers' real danger had been that there were always a few who could give eloquent voice to doubts. He did not consider the levy a tax. It was not a tax for the benefit of the commonwealth, but a levy to be credited back to themselves in the form of shares. They should go to the other sections of producers with some definite scheme. He would like the objectors to suggest some scheme of finance. He considered that they should finance the company without the assistance of the Government or any commercial interest. Mr. Moss said that it sho|ild not be allowed to gt> out to New Zealand that the farmers here favored an export tax for any purpose whatever. • Mr, Burton (Kaiporaoi) said that the question of' finance was the stumbling . block. It was not necessary that the producers should own the boats. There were numerous ships trading on charter, and the farmers should be strong enough to obtain the option over a number of these ships. Mr. Sinclair considered the matter should be -left to a committee to formulate. Mr. Hutchings (Featherston) did not like the word levy. He was afraid once the Government got the money they might not hand it back, Mr. Moss asked if Mr. Forsyth would agree, to delete the word "levy", otherwise he would have to move an amendment. Mr.'Maxwell (Kahui) was entirely in favor of any workable scheme to provide shipping, but was entirely opposed to |ny suggestion of an export tax. There was a certain section of the community that had been waiting for years to have the principle of an export ta\' introduced. Once it was introduced it would be difficult to confine it to one . purpose, or to have it repealed. They must also consider the question of proportionate interests. Who were the t producers? The exporters were not all . producers, as there were the propriety ! concerns. Were they satisfied, if they , introduced an export tax to provide the j finance, that the actual producers would . hold the control? His idea was that [ the exporters and not the. producers would hold the control, as exporters ' were largely now producers and included [ meat rings, etc., that they Were always r fighting. He urged that the words '•export levy" be deleted, as it would be fatal to allow it vo go out that a representative gathering of farmers fav- ] ored an export tax. ' Mr. J. S. Connett (Bell Block) said j that all objected to the word "levy." ' If they were to take up shares on a ' butter-fat basis all objection would be removed, and if they approached other ' producers to enter on a fair basis he ' thought the 'scheme would be carried. ' Mr. Powdrell said that it appeared that while all favored thl 1 scheme many were not prepared to pay for it. It was no use going to the Government for 3 assistance unless they told the Government what they were prepared to do. 8 He urgied them not to make themselves * ridiculous by going to the Government J and saying that they wanted ships but ' had not sufficient confidence in the is scheme to be prepared to pay for it. They should be prepared with some t scheme bucli as guaranteeing Id per i pound butter-fat for 10 years to pay 1 off the fleet If all were prepared to r put their shoulders to the wheel they t could do a lot, and there need be no - fear but that they would succeed. He - urged them to trust their leaders who t had not failed them in the past. Mr. Gibßon (Rahotu) was quite pree pared to support the scheme if it was e a voluntary contribution, but he would t not favor the resolution if it meant that e the Government could force them to pay t a levy. j Mr. Fisher said that at a conference e of producers held some time ago to disq cuss the question of shipping it could 3 be seen that some of the freezing com--0 panies were dead against the proposal e that producers should have control of their shipipng. If the producers only put their shoulders to the wheel they .. would get much further with the proposal. Mr. W. R. Wright (Cape Egmont) £ said that the farmers' freezing companies favored producers owning their own shipipng, but the proprietary con- " cerns did not. After further discussion, Mr. Forsyth said that he only wished to see the reso--7 lution knocked into shape, and he agreed to the deletion of the words "providing for a levy on all exports," : and the substitution of the words "and to devise a scheme," which were sug:e Rested by the chairman. In this form the resolution was carried,