Manufacturers Discuss Shipping

Press, Volume CVIII, Issue 31728, 11 July 1968, Page 18

Manufacturers Discuss Shipping

The entry of the Union Steam Ship Company’s two Tasman roll-on ships had been set back three months by stoppages in the builder’s yards in Britain, said the Christchurch manager of the company in a letter received by the council of the Canterbury Manufacturer’s Association last evening. The first ship would now not enter service before January, 1969, and the second ship would start about three months later.

Once these ships were in service any criticism which could justly be directed to-

wards the regularity of the conventional ships would no longer apply.

The loss of the Wahine had materially affected connecting services available to handle cargo from the South Island. Until a replacement was available, which would not be before 1970, the Hawea, based at Auckland, would have to be the main connecting ship. The letter said that it concerned the company that, fn view of the intensive competition with which coastal shipping was faced from subsidised Government services, many of the main manufacturers who were seeking subsidised rates across the Tasman had not supported the Hawea service. The association’s proposal that eaqualisation of rates be considered would, the company agreed, be welcomed

by ports not served by the Maheno, and Marama. “But, quite frankly, we cannot see how. such an arrangement could be worked,” said the letter. “For instance, we cannot see that Wellington and Auckland shippers would be particularly happy at having virtually to subsidise rates from other ports.

The increase in rates from Wellington and Auckland necessary to cover the centralising costs would be strongly disputed. We consider this would be particularly so since freight is only one factor involved when it comes to making a comparison of competitive costs.” The company said that its conventional ships would continue to serve South Island ports as long as there was a demand for their services. The rating structure for

the Tasman express service was not known yet, since all costings for the new ships and ancillary equipment were not yet known. At the request of Mr R. G. Pearce, the council decided not to pursue the question of shipping services and rates through the New Zealand Manufacturers’ Federation, but to take up the matter with the Minister of Overseas Trade (Mr Marshall) and to keep the Otago-Southland Manufacteurers’ Association informed. Mr Pearce said that he imagined the growth of (ise of the Hawea would be such that it would eventually be rather difficult I to obtain space within the time-table available for the transhipping trade. The association should bring the matter to the attention of the Government, which had professed to be interested in the equalisation of industrial growth in New Zealand.

The question affected not only Canterbury manufacturers but those in the smaller North Island centres.

“There seems to be complete official inertia in tackling the problems of equalised industry opportunities and growth throughout New Zealand.” Mr B. R. Carey said that there seemed to be only one practical service for getting freight to Australia, and that was by air. This service was rapidly becoming booked out.