View on freight costs repeated

Press, 26 August 1982, Page 12

View on freight costs repeated

PA Dunedin The South Island manufacturers' assertion that it is possible to freight goods cheaper to Australia than Auckland has been reiterated.

The director of the OtagoSouthland Manufacturers' Association, Mr W. R. May, said that smaller manufacturers often were not able to negotiate cheap freight rates to Auckland. They found it cheaper to freight to Australia. Mr May was reacting to a statement by the general manager of Railways. Mr T. M. Hayward. Mr Hayward said that any South Island manufacturer who allows himself to be charged more to get his ’goods to Auckland than he

would to get them to Australia, is neglecting his own business.

But Mr May said that big manufacturers were able to negotiate cheaper freight rates to Auckland than the usual published rail freight rates because of more regular and larger shipments. "The smaller manufacturers in the main have not got the ability to negotiate the cheaper rates because of irregular and small shipments,” he said.

Mr May said that one South Island manufacturer had difficulty competing in Auckland because a client had found it cheaper to import goods froniv Australia than from the South Island because freight costs were lower.