15 Per Cent Increase In Export Freights Possible

Press, Volume XCVI, Issue 28343, 31 July 1957, Page 13

15 Per Cent Increase In Export Freights Possible

(New Zealand Press Association)

WELLINGTON, July 30.

Though an official statement will not be made for some days, it is understood agreement has been reached between the representatives of the New Zealand Conference Lines and the producers’ boards on increased overseas freight rates. The increase may be somewhere about 15 per cent., States the “Evening Post.” -

The announcement will be delayed beyond the original deadline date, August 1, This is because the chairman of the reednStitiited Dairy Products Marketing Commission has still to be elected and this cannot be done until, the . Government an-, bounces its three representatives pn the commission: This is expected in a day or so and the commission will assemble on Thursday to elect •a chairman and hear the result of the freight discussions. The Meat Producers’ Board will meet tomorrow to hear the t&ort of the chairman (Mr J. fir, Ormond). Though Messrs F. E. Harmer and W. E. Keville, the, shipowners’ representatives at the talks now ending asked slightly jhorfc, it js understood that the figures supplied by a London firm of accountants supported a rise of 15 per cent, in freight rates, and it is likely that the actual increase agreed upon will not be far short of that. . The last increase in rates was made two years ago when the ship owners settled for a rise’ Of 5 per cent, when, in fact, the accountants’ figures sustained an increase of rather more than twice that figure. This factor, undoubtedly, had a bearing on the present talks. ■At the outset of the discussions fn London last September, the parties agreed that before freight rates could be fixed, it would be necessary to establish the conditions of service required so that the lines could assess the costs involved. v The principles to be applied by- the investigating accountants .envisaged that freight -rates

should provide for the costs of service, adequate provision for maintenance and replacement oi fleets and a fair return of capital employed. The new freight contracts will run, subject to consultation' bn freight rates, for a period of three years beginning on September 1. The shipping companies are io maintain » service sufficient to carry all New Zealand meat, dairy produce and fruit, including both refrigerated and general cargo, that is tendered for shipment to areas covered by the contract. Basic rates of freight are to apply to shipments within the United Kingdom - Hamburg -Le Havre range.