£80m Shipping Bill

Press, Volume CVI, Issue 31230, 30 November 1966, Page 3

£80m Shipping Bill

(New Zealand Press Association) WELLINGTON, November 29. The Minister of Overseas Trade (Mr Marshall) said today that New Zealand’s annual shipping freight bill was likely to rise to £B7 million next year.

He told the conference on transport and handling of overseas trade that the bill this year was more than £BO million—£4s million for exports and £35 million for imports. “This means it is costing the country almost 90 per cent of the total overseas exchange earned by exporting either daily products or meat products to pay for shipping services,” he said. “As shipping is costing us so much in foreign exchange, it is imperative that this cost be kept to a minimum by every means in our power.”

He said it was clear that shipping freight costs made a major impact on New Zealand’s economy perhaps more than on any other trading country. “I believe that unit loading of our overseas cargo can help keep shipping freight costs down—largely through quicker turn-round of ships.” Mr Marshall said the Government was playing its part in keeping New Zealand’s exports as high as possible by establishing, maintaining and improving access for New Zealand products to overseas markets. But while it was clear New Zealand could increase its agricultural and manufacturing production for world markets, there remained the “very important aspect of price-cost relationship.” “New Zealand sells meat, wool and dairy products with

their associated by-products in a world of intense competition.

“Prices for these products on overseas markets have been falling to the extent that, in some cases, increased production for export has resulted in the value of exports being merely maintained or increasing little over that of previous years. “Because of the nature of these exports and the markets

where they are sold we are forced to accept the prices because we operate in a buyer’s market.

“It is thus not possible to pass on our costs to the consumer.”

Mr Marshall said exporting remained a profitable proposition only if costs could be kept down by economies, by greater efficiency or by expanding markets giving increasing demand.