Chathams cargo rates to rise

Press, 12 May 1984, Page 1

Chathams cargo rates to rise

By MICHAEL HANNAH in Wellington Freight rates for Chatham Islands cargo will rise 35 per cent from May 20. Announcing the increase yesterday, the Under-Secre-tary for Internal Affairs, Mr Thompson, said cost increases since freight rates were last adjusted on May 26, 1981, made the rise necessary. Mr Thompson said the Government had subsidised the Chatham Islands shipping service to the tune of $1.6 million in 1983-84. The subsidy for 1984-85 is expected to be $2 million. The service was provided by the Union Steam Ship

Company’s vessel Holmdale under charter to the Government, which also met the losses on the service. Mr Thompson said the shipping service was important to the islands, and the Government had subsidised it for some years to ensure its continuation. “The Government expects the users of the service to accept a proportion of its costs based on the use of the vessel in the service,” he said. The new freight rates would not recover all the cost increases since the freight rates were last adjusted in May, 1981, said Mr Thompson.