Shippers worried by Wool Board move

Press, Volume CXI, Issue 32661, 17 July 1971, Page 18

Shippers worried by Wool Board move

(N.Z.PA. Staff Correspondent >

SYDNEY, July 16.

Australian primary producers and exporters are examining the implications behind last week’s announcement that rates for general and refrigerated cargo and dried-fruit exports to Europe are to rise again.

The rate will go up 15.75 per cent from September 30 for the 197172 season, and cost exporters 56.6 m more. The Australia to Europe Shipping Conference originally had sought an increase of about 25 per cent Increased freight rates are hardly news today, but the announcement by the conference and the exporters, represented by the Australia to Europe Shippers' Association, contained an important proviso. The agreement is subject to wool continuing to be carried by conference ships. Shipowners are concerned about current moves bv the Australian Wool Board to find alternative means of shipping wool to Britain. Woolmen have long been unhappy with the conference system and will meet in Melbourne later this month to debate a report from European consultants commissioned by the board to examine cheaper ways off shipping wool. ii

Wool is a vital northbound cargo for the Conference, comprising at present 40 per cent of the trade. Without wool, the Conference system between Australia and Europe would be thrown into confusion and placed in jeopardy. OTHER SHIPPERS The Conference has said that without wool, the service would deteriorate, and be much more costly to other shippers. Freight rates for wool for the new season are being discussed, and there will be further talks in London later this month.

Shippers’ warnings, and the I proviso to the new agree- • ment, show quite clearly that i rates on all other commodi- ■ ties would rise sharply if wool opted out of the conferi ence system. The “Australian Financial Review” said this week the proviso had been inserted in the agreement to increase the pressure on the wool industry, and particularly the Wool Board, to continue using Conference ships “at a

• much higher freight rate than ■ they need to pay for a ship- : ping service that is adequate to their own particular ■ needs.” OTHER COMMODITIES ’ The newspaper said this 1 meant, in effect, that if wool did remain with the Conference in 1971-72, wool would I be subsidising the shipment of other commodities. S6M SUBSIDY The “review” said the subsidy had been estimated at more than s6m for 1971-72. This was based on savings per bale that were believed to be possible by using nonConference ships. The paper added there was little doubt the Conference and -other Australian export interests would pressure the Government to direct the Wool Board to remain with the Conference meantime. The Government, through the Australian National Line, is a member of the Conference. Shipping conference representatives are now putting their case to graziers direct. “ADVERSE EFFECT” Conference officials met graziers and town council officials at Mooree, in rural New South Wales, this week. The chairman of the Australian tonnage committee of the Conference (Mr A. Lloyd) said that if wool was removed. this must have an adverse effect on other commodities and the existing service.

He said: “It is to the benefit of other commodities that wool stays with the Conference, and it is in our interest certainly, and also to the benefit of Ute wool industry. If wool was removed, the service would be severely curtailed.

One grazier told the shipping officials: “We have to look after ourselves. If you can get away with this, then God bless you. But we have to look after ourselves, and we are not going to carry the buck for some other industry.”