More funds sought for Pacific shipping line

Press, 20 August 1983, Page 27

More funds sought for Pacific shipping line

NZPA Port Moresby South Pacific countries will take a hard look at the Pacific Forum Line, which has not made a profit in five years, when -they are asked to put more funds into the shipping concern in Canberra later this month. The Solomon Islands has already said it will withdraw from the line because of the rising cost, and other smaller pacific nations may be thinking the same. The managing director of the line, Mr Harry Julian, recently visited Pacific . nations seeking support for the extra money request to be made at the South Pacific Forum meeting starting on August 29. Last year the Forum nations agreed to borrow $5 million at 1 per cent interest from the European

Investment bank, and accept a $1 million grant from the E.E.C. to buy 1500 shipping containers. It has taken the last 12 months to get the signatures of all the Forum countries to the deal. The line has had to continue leasing containers for the extra period, thus pushing up costs. Costings are still being worked out but the figures will be given at the Forum meeting in Canberra. Papaua New guinea’s foreign Affairs and Trade Minister, Mr Rabbie Namaliu has said that the 14 members of the Forum will want an assurance that, extra funds will improve the shipping line. Mr Namaliu said that Mr Julian had told Papua New Guinea that the money would put the line in a

position to make a profit by 1985. “Papua New Guinea has already expressed certain reservations about continuing to inject funds when the forum line continues to work at a loss,” Mr Namaliu said. This was something the pacific countries could not continue to tolerate, he said. “In principle we have a commitment too encouraging, promoting and building up regional co-operation,” he said. “Shipping is one way of achieving this. ,r However, that has not deterred us from expressing very strongly that if the future of the line does not look all that bright then really there is no point in continuing unless something drastically improves.”