NEW SHIPPING COMPANY.

Taranaki Daily News, 13 May 1921, Page 6

NEW SHIPPING COMPANY.

PROPOSALS PUT FORWARD.

GOVERNMENT AND THE 4J MILLION LOAN.

Various local bodies are being approached in connection with the proposed shipping company, of which details have been forwarded by Mr. Bernard Tripp, of Timaru. The proposals now put forward by Mr. Tripp for consideration are:

The Government to float a loan in England next Nevember of 4i millions, to be called a Shipping Company Loan. This loan to be handed to the Producers’ Committee in Wellington (who would form a board consisting of five exporters and five importers), with the object of buying 20 steamers of ten thousand; tons each, and have them converted into insulated boats with some passenger accommodation. They can now be purchased at £l2 per ton. or less, and the cost of insulation is about £BO.OOO. so would stand in at no more than £200.000 per steamer. The Government to pass an Act this next season imposing an export and import tax of two per cent. This would bring in on an average about £600,000 a year on oversea trade, which would be used for paying interest and sinking fund. The importers and exporters would more than save this tax by reduced freights, and when the 4i million loan was paid off the tax to be removed.

The Producers’ Shipping Company, after providing for a renewal and depreciation fund, to put all profits towards reducing freights and passenger fares instead of paying dividends. The Government to have the right to appoint two nominees on the Producers’ Shipping' Company board until the loan was paid off. This would take about twelve to fourteen years.

As probably the importers have contracts with ‘the shippnig combine for some time ahead, I would suggest that they should be exempted from the two per cent, tax for twelve months after it came into force for the exporters.