Costs cause concern

Press, Issue 33842, 14 May 1975, Page 19

Costs cause concern

(V z. Press Association} WELLINGTON, j The Meat Board is tell the Minister of Transport (Sir Basil Arthur) it will expect the Government to meet extra freight costs if the choice of container ports for the South Island is made on other than purely economic grounds. Selection of the ports on anv other criteria would weaken the board’s position in future freight-rate negotiations with the container lines the deputy-chairman

(Mr Adam Begg) said on Sunday in a statement. “The board’s interest has; been concentrated on seeing i that the location of the pro-; posed South Island container; port would ensure producers! the most efficient and economic service for meati shipments which, it should! be emphasised, will be by! far the South Island’s biggest container export item,”, said Mr Begg. "It is becoming all too evi-i dent that the decision where to locate not just one. but; two container ports for the' South Island is likely to be made on anything but; economic grounds. This mustinevitably mean increased; operating costs, which will be recouped by the shipping companies in the form of; higher freight charges to I producers.” Mr Begg said. “The board is therefore; advising the Minister that, if he chooses so-called socioeconomic grounds, it expects the Government to accept full responsibility for the extra costs involved.” i