Ships “run off” coast by “unrealistic rail rates”

Press, Volume CXIV, Issue 33577, 4 July 1974, Page 16

Ships “run off” coast by “unrealistic rail rates”

Information about the shipping space available between the North and South Islands had led the Government to decide that it would not need to charter the Holmlea as well as the Rangatira to maintain the inter-island service, the council of the Canterbury Chamber of Commerce was informed last evening. The council was told by its transport committee that when the Government had heard of the chamber’s concern about the withdrawal of the Holmlea, the Minister of Transport (Sir Basil Arthur) had replied that the future of the vessel had been closely examined. Figures on the shipping space available and the amount of cargo, and consideration of the impending entry of the Aratika into the inter-island service, made it clear that there was ample shipping space available without the Holmlea,- the Minister had said. He had also said that the Rangatira should work as close to its maximum capacity as possible during the next six months or so, to minimise the cost to the Government. which was likely to exceed slm for every three months.

The transport committee reported that the Coastal Trader appeared to be receiving more patronage than earlier. The committee also praised the Government’s decision to charter the Rangatira. The Holmlea had done a very useful job, carrying about 100,000 tons a year, Mr F. I. Sutton said. It was very hard to see the Government’s reasoning on the issue.

Inter-island shipping was very difficult, and the committee felt that the South Island was being shabbily treated as far as transport was concerned.

The president (Mr M. L. Newman) said that . the chamber should consider the situation in which ships were being “run off” the coast by the charging of unrealistic rail rates. The Government had said it would not increase the rail rates for three years — and the result was another example of a political decision causing economic chaos, Mr Newman said. It was decided that the council’s economic affairs and transport committees should consider an approach to the Government on the “artificial holding down” of rail rates.