EXPORT TRADE.

Taranaki Daily News, 28 October 1920, Page 5

EXPORT TRADE.

THE FREIGHTS TOO HIGH. :} : SHIPPING COMBINATIONS. INDEPENDENT LINE URGED. By Telesrapli.—Press Association. Wellington, Last Night. The Agricultural, Pastoral, Stock and Commerce Committee, which had I ecu directed to report whether sutueicnt shipping is likely to be available for the purpose of our trade, especially Die export of produce, during the next, few years, and, secondly, to arrive at a deiinite understanding with the shipping companies as to what rates of freight are likely to be charged, especially for wool, meat, dairy produce, and flax, reported to the House to-day. It stated that the refrigerated tonnage in New Zealand trade is sullieient for normal requirements at the present time. While giving full consideration to the various causes -which have operated in materially increasing the cost of running vessels, as compared with pre-war times, the committee, after carefully weighing the evidence given, is of opinion that the rates now quoted for privately-owned produce are unwarrantably high. These rates, when applied to an output, of frozen meat, dairy prod.iee, meat sundries, flax, and animal byproducts equal to that shipped in '.11)19, and an output of wool equal to that shipped in 1914, would involve the payment of £5,143,202 in excess of i.ha payments made for freight on these proI ducts during the year 191.'!. MoreLover, these rates are. in excess of those ruling during the actual war period.

The evidence oMained as to combinations among shipping companies gives cause for grave concern, especially when the dependence of the Dominion / upon refrigerated tonnage is realised, and consideration is given (o the relatively small total amount of refrigerated tonnage existing in the world, as compared with ordinary cargo vessels. The committee is of opinion that consequent upon the possibilities latent in the com-, binations existing, it is desirable in the best interests of the Dominion that a shipping line be established which will be entirely independent of any combination, and that the Government should assist in the- establishment of such a line by a guarantee of financial assistance or otherwise.

The committee also recommends that in order to combat the present practice of granting secret rebates legislation based on that contained in the United States Shipping Act, lfllO, should be introduced, under which shipping companies are declared by Act to be common carriers, and a board is set up to administer the Act. Common carriers by water being forbidden to grant rebates or usl "fighting ships" to damage competitors or adopt retaliatory measures, the board has power to call for all agreements and to cancel or modify them.