FREIGHT ON COAL

Press, Volume CII, Issue 30192, 25 July 1963, Page 14

FREIGHT ON COAL

Mr Rowling Seeks Review (Parliamentary Reporter) WELLINGTON, July 24, A charge that the Government has done nothing to ease the position in the Buller area and on the West Coast generally was made by Mr W E. Rowling (Opposition, Buller) during the Budget debate in Parliament tonight. He commended the Government for designating the counties of Inangahua, Buller, Grey and Westland a "redevelopment region,” , but asked: "Where do we go from there?"

It was all very well to offer 20 per cent, allowance in respect of investment in plant and machinery, but special measures were necessary’ to ensure that the new investment was there to claim the allowance. The new industries were, as yet, nonexistent, and perhaps they would remain so. He suggested the incentives to rehabilitate the area: (1) The active encouragement of new industry (2. Tax exemption for the first few years of production as was being done in Singapore and Malaya <3> The improvement of harbours to modern standards. (4) Review of freight rates. Mr Rowkng said freight rates by sea and land were nearly 50 per cent, of the total cost of coal from the region. Sea freight to the North Island was 49.2 per cent, of the cost of coal from ■Ngakawau to Auckland Rail--charges to Christchurch represented 48.6 per -ent. of the total cost. "It is high time there was a complete review of the position." Mr Rowling said "This Government, which did a great deal of talking down there in June last year, has made no practical moves since in anv direction ”