Conference Lines Seek Rise In Freight Rates

Press, Volume CIII, Issue 30498, 21 July 1964, Page 13

Conference Lines Seek Rise In Freight Rates

(Special Correspondent N.Z.P.A.) LONDON, July 20. A firm request for an increase in freight rates by the Conference Lines to the New Zealand producer boards is a main subject for meetings beginning tomorrow in London.

The last increase was 6 per cent in September, 1962. Then a three-year contract, agreed in 1960, was extended until September, 1965. Freight rates may be reviewed every year. The present total freight bill on New Zealand inward and outward cargo is about £35 million a year. Every rise of 1 per cent therefore means an addition of about £350,000. The Conference Lines will be represented by Mr R. H. Senior (chairman of the Port Line), who will preside, Mr J. A. MacConochie (chairman of the Shaw Savill Line), Mr C. A. W. Dawes (deputy chairman of the New Zealand Shipping Company), and Mr W. T. Rae (a director of the Blue Star line). Sir John Ormond will represent the New Zealand Meat Board, Sir Andrew Linton the New Zealand Dairy

Board, and Mr K. M. Longmore the New Zealand Apple and Pear Board. Streamlining

The chairmen of the lines and the board last met in Wellington in February when they had before them the “streamlining report” drawn up after two years’ work by the producers boards’ shipping utilisation committee and the New Zealand trade streamlining committee.

It was subsequently reported that disagreement had arisen over two clauses — that the shipping lines should have a five-year contract to carry New Zealand’s produce, and that any disagreement over freight rates should be settled by arbitration. Not Resolved This disagreement has not been resolved. Although no agenda for this week's meeting is available, it is a reasonable assumption that differences of opinion on these subjects—covered by clause one and two in the recommendations of the streamlining report—will be raised.

The lines are said to have been repeatedly outmanoeuvred by “farmer politicians” in freight negotiations. to be "clearly sick of losing money,” and to be seeking a package deal to give them security of tenure and a proper return on capital. Both sides are noncommittal. The lines say that “it is safe to conjecture that streamlining and the imple-

mentation of the recommendations of the joint committee will come under review.” They have also said, “there will be the question of the rates of freight for the 1964-65 season.”

The producers boards’ chairmen say they have come to London to talk about the lines' request for an increase in freight rates—nothing more.

There will be no progress reports of the meetings, but a joint statement will be made when they end. The lines say: "What Indications there are point to about one week of talks.”