National line advocated

Press, Volume CX, Issue 32459, 20 November 1970, Page 5

National line advocated

fJVew Zealand Press Association)

WELLINGTON, Nov. 18. New Zealand ownership of coastal and international shipping, with definite advantages for Government ownership, was advocated at the Commission of Inquiry into Merchant Shipping today, by Mr J. V. T. Baker, a former Government Statistician and now an independent consultant in management and economic statistics.

Under examination by Mr R. Edgley, representing the New Zealand Shipowners* Federation, Mr Baker said he had undertaken a study of shipping, but not with the purpose of advocating any,party’s particular viewpoint The weight of evidence, based mainly on a series of United Nations reports and the results of an inquiry in the United Kingdom favoured at least a domestically owned shipping line, he said., This could mean significant , foreign exchange earnings or;, savings on foreign exchange.! An estimate of this potential:, in New Zealand was slsm. The Government should be h aware that substantial finan- j cial assistance might be. necessary to any shipping ; operator. Probably the best form of subsidy was to have a Gov- j ernment-operated shipping | line, with any losses being [ met from the tax purse. i f Government ownerships might not be a commercially:] profitable venture at first but provided the shipping line v was run efficiently it would c bring a net benefit to the rest of the economy. t Government ownershipd would require very little f; administrative control, no s analysis of accounts of com-

peting lines, and the real cost of assistance would be readily obtainable. Mr Edgley said he considered the ease of access to I cost figures was a weak argument for a national shipping line. Mr Baker said this financial ■ information would be just as readily obtainable if a private .company operated the shipping line. Because of the European Economic Community negotiations, diversion of trade might become extremely urgent, and only a national line was likely to provide new routes quickly enough, i There were advantages in having coastal and trans-Tas-man trade operated by an origanisation with New Zea- | land’s national interest at' heart. Thomas Nationwide Transport, a potential bidder for the Union Steam Ship Company, had indicated that if it gained control the Maheno 1 and the Marama would no • longer call at Lyttelton. South Island producers f would then have to pay ad- ’ ditional freight rates. 1 Mr Edgley said that al- a though the Maheno at present 1 did not call at Dunedin, 1 freight charges were stilPthe r same as from Wellington. i The hearing is continuing, a