State Shipping Line Held Extravagant

Press, Volume CIV, Issue 30763, 29 May 1965, Page 16

State Shipping Line Held Extravagant

(New Zealand Press Association)

WELLINGTON, May 28.

Anyone who thought he could get a better return from his capital by starting a new shipping line than by investing in gilt-edged securities was “talking through his hat,” said Mr R. H. Senior, chairman of the Port Line.

Me Senior was commenting on the decision of the Labour Party conference that the next Labour Government should establish a state shipping line. He arrived in Wellington as the leader of a four-man delegation from the Conference Lines. London, to negotiate a new freight contract for refrigerated cargo with New Zealand producer boards. Mr Senior said a new shipping company could not hope for a return of even 6 per cent without taking into account all the risk capital in-] volved. Australian Attempt “The Australians tried once when they established the old Commonwealth Line. They lost a lot of money.” he said. Mr Senior said that if New Zealand wanted to ship all New Zealand cargo through a state line, it would need about 60 ships at a capital cost of about £l5O million. “This is extravagant when New Zealand has a good service at its disposal for carry-' ing cargo at rates which are| mutually agreed on and are' not excessive for the service, given and required," he said.

Mr Senior said he could not comment before negotia-i

tion began on whether freight rates were likely to be held this year. The saving of about £1 million through the twoport loading and discharging system would be a major consideration in fixing the new rate.

But he could not say whether this would completely offset rises in shipping costs because of increased labour charges in both New Zealand an Britain. Anxious To Help

Mr Senior said he was [ sorry the Apple and Pear Board had felt the need to charter a ship to carry apples and pears to North America. “We are anxious to help, but there comes a time when we can’t, because at the freight rate required we could not meet our costs,” he said.

Mr Senior will leave New Zealand on June 10. Representatives with him are Mr C. A. W. Dawes, deputy chairman of the New Zealand Shipping Company; Mr J. A. MacConochie, chairman of Shaw I Savill; Mr W. T. Rae, general [manager and director of the [Blue Star Line.

They are accompanied by Mr A. C. M ,ckay. secretary of the New Zealand Tonnage Committee in London.