Case For State-Owned Ships

Press, Volume CVI, Issue 31169, 20 September 1966, Page 6

Case For StateOwned Ships

The claim that a wholly-New Zealandowned shipping line would be both practicable and profitable is made by a correspondent, “Nauta”, who has had long experience in shipping. He bases his claim on these figures : Vessel of 10.000 tons EARNINGS £ U.K. to N.Z., half full of cargo at £2l a ton 105.000 N.Z. to U.K. full ‘ - 210.000 Revenue from round trip - - • - 315,000 Three round trips a year .... 945,000 EXPENSES Running time U.K. to N.Z. .... 25,000 Running time N.Z. to U.K. .... 25,000 N.Z. coast 50 days at £l2OO a day - - - 60.000 Discharging U.K. 36,000 Expenses for round trip 146,000 Three round trips a year .... 438,000 PROFIT i Profit for one ship a year .... 507,000

i "Nauta” says that Sir John Ormond, chairman of the Meat Producers’ Board, and others have been negative in their thinking on this idea. Sir John Ormond had said that the idea of a New Zealand line was “quite impractical.” The Government had claimed that three “jumbo jets” for £2O million were the answer and asked why five ships for £l5 million should be bought at the expense of overseas funds. “Would the Government please explain where the £2O million for jumbo jets would come from, if not from overseas funds?” says “Nauta.” “Nauta” says his figures for revenue and running expenses of one ship are based on figures quoted by Sir John Ormond and the shipping companies, all of which had; been published. Sir John Ormond had saidi

that the streamlining plan had saved New Zealand £1,000,000, but recent freight increases made this figure pitiful. To implement his plan, “Nauta” suggests:— (1) New Zealand should, obtain complete control of thel Union Steam Ship Company! (purchased by P. and 0. in! 1917) and thus retain all; profits from internal trade, plus the Tasman, Eastern, and island trade. (2) The Government should have one office only in each centre for the import and export of cargo, using the Union company’s offices. (3) There should be one stevedoring firm for each port, controlled by the Government shipping office. “Nauta” says it is well known that shipping is profitable. A New Zealand-owned line would make profits for New Zealand.