SURCHARGE ON N.Z. CARGOES

Press, Volume LXXXVII, Issue 26441, 7 June 1951, Page 8

SURCHARGE ON N.Z. CARGOES

SHIPOWNERS DEFEND DECISION

« SPATE OF MISCHIEVOUS PROPAGANDA ” (New Zealand Press Association) WELLINGTON, June 6. “It is disturbing to be confronted with a spate of propaganda which is mischievous in effect in that it proceeds from false, if not distorted premises,” said a director and manager for New Zealand of the Shaw Savill and Albion Company, Ltd. (Mr D. A. Robertson), commenting to-day on the 50 per cent, surcharge on freights. “If we, the shipowners, have contributed to the confusion by anv errors of reticence on our part we must accept our share of the blame, but I cannot see that we have been remiss in any way,” he said. “From the outset we made our position crystal clear. Far from acting dictatorially and in the dark—as is suggested—we fully consulted the Government and the accredited representatives of the producers before any step was taken. “That we did not find any ready agreement was not unexpected—as the Increase proposed was perforce substantial. We. did receive a sympathetic hearing, however. It was freely conceded that we were entitled to some measure of relief, but the trustees of the producers and importers not unnaturally would not commit themselves as to the quantum of relief, as they were not in a position to assess what the percentage of increase in freights should be. We asked them to accept what information was given in good faith. Loss of £1,500,000 “The overseas lines frankly admitted that their loss at the time was more than £1.300.000,” Mr Robertson said. "It is at the moment, as far as can be ascertained, about £1,500,000, with unknown losses and serious disruption of service in other trades. “We stated also that we could not carry the terrific burden of the hold--up alone. Although we appreciated the loss and hardship that are thrown on the rest of the community in many directions and have every sympathy with the sufferers, we did make it clear that we had no alternative but to impose the surcharge if we were to be expected to carry on and provide the service and quality of service that this Dominion has always enjoyed. Harbour Board Rates "If our ships were immobilised our expenses were not immobilised.” added Mr Robertson. “Harbour board rates have increased by 30 per cent, and more recently—and nothing is said about that. Yet we have been paying, among many other items (such as wages, victualling, insurances, maintenance), full rent for lying in idleness on the New Zealand coast. Full dues are being paid to local authorities, and full prices are being paid by us for all materials and services, and unless a general moratorium is declared—here and abroad—the incidence of hardship cannot be equitably spread except through the mechanism of freight rates. “After all, the overseas lines, for the most part, have been in this trade since its inception. The Dominion’s prosperity is our prosperity. We do not take our cblieafions and responsibilities to New Zealand lightly, nor have we proved. I hope, narrow or short-term in our outlook. Withdrawing of Surcharge “We have stated categorically, and without any evasion, that we are seeking, not to recoup our losses, but to minimise them.” he said. “Further, as soon as achieved, this surcharge will be withdrawn, leaving a fresh level of rates to be struck in keeping with the economies of maintaining our full regular service—no account having been taken of increases in operating over the last two years, increases freely admitted by the parties with whom we have negotiations. “That we cannot expect to do better than this is a matter of easy calculation. "Also, it should not be forgotten that the British people are paying their full share of the freight on produce shipped to the United Kingdom.

"Lastly, the community cannot be but gratified at the satisfactory developments on the waterfront," Mr Robertson said. “It is a happy augury. If peace is achieved and a real understanding on industrial problems, efficiency should be assured, as the shipowners’ intention to none other than to pay a good ttoy’s wage for a good day’s work.”