TRADE SUBSIDIES.

Auckland Star, Volume LXVI, Issue 51, 1 March 1935, Page 7

TRADE SUBSIDIES.

SHIPPING HIT. WIDE INFLUENCE. Heavy Annual Losses in Freights. STRUGGLING INDUSTRY. (United l'.A.-Electric Telegraph-Copyright) (Received 10.30 a.m.) LONDON, February 28. At the meeting of the Chamber of Shipping, Sir. L. C. Harris, in his presidential address, contrasted the effects of the Government's subsidy for tramp shipping with the effect's of subsidies for other trades. He said that he estimated the latter would mean an annual loss to shipping, in freights, of between .£350,000 and £400,000 for sugar, £375,000 for orheat, and £200,000 fur bacon.

The effects of the meat subsidy cannot yet be ascertained, but recently the refrigerated boats already on berth in Australia were faced witli sudden cancellation of bookings fur 315,000 carcases. "I cannot avoid a deep impression that the benefits from these subsidies have not accrued. The increases in price, which were expected, have proved decreases. The country appears to be poorer to the extent of the subsidies, but in the shipping trade there is another aspect. "The subsidy is a negligible amount. but it \\as intended as an indication to Other nations that Britain has a care for her shipping and is prepared to take any measures necessary for its maintenance. Many nations are beginning to take notice and are giving new consideration to the shipping problems of their respective countries and the world.

"Therefore, with indomitable hopefulness we shall endeavour to clamber u]> a step or two more of the staircase leading to recovery and good health."

QUOTA SYSTEM. Baldwin explains policy. (British Official Wireless.) (Received 12.30 p.m.) RUGBY, February 28. Asked whether the Government intended to abandon the present system of quotas and restrictions upon imported foodstuffs in favour of tariffs on agricultural produce with preference to the Dominions, Mr. Baldwin said the Government had often stated its 'view that quantitative regulation was not necessarily, in all cases, the most appropriate method of assisting the home agricultural industry.

For example, the method adopted in regard to fruit and horticultural products had, from the outset, been that of import duties. The Government would prefer in the case of meat to follow the broad precedent of the Wheat Act and proceed on the lines indicated by the Minister of Agriculture, but it was not possible to lay down a general rule as the circumstances of each case were different.