PRODUCE FREIGHTS

Dominion, Volume 24, Issue 286, 29 August 1931, Page 6

PRODUCE FREIGHTS

Farmers Complain INTER-ISLAND COSTS Dominion ' Special Service, . Christchurch, August 26. The likelihood of a collapse of arable farming in the South Island because trade with the,north at competitive prices was made impossible by high freight charges between .the two islands was predicted by Mr, W. W. Mulholland at a meeting of the North Canterbury branch of the Farmers’ Union to-day. He advocated a close investigation of the position with a view to obtaining’ reduced charges. The subject arose in a discussion of a letter from the South Canterbury executive asking for support of the following remit: —"That in view of the low prices received by farmers for their produce the Dominion executive should be requested to set up a sub-committee to investigate the freights, wharfage'and ■ commission charges imposed when shipping , these goods between the two islands with a view to. a substantial reduction in these and other charges.” ■ Following receipt .of this letter the head office of the Farmers' Union had made representations to the shipping companies asking for a reduction of charges and had received replies from two of them concerned, in the inter-island and coastal trade setting out that the present conditions made it impossible- to take any steps in that direction. “I think this matter should be taken up energetically," said Mr. Mulholland. “The cost of transport of farm produce between the two islands is too great, and if a conference or committee representing both the North and South Island executives can be arranged some light may be thrown on the problem and indicate a course of action. The price figures for some of our produce sold in the North Island in unaltered form compared with the prices we receive for them here show a margin of difference even greater than the farmer’s original return. We in the South Island will find it impossible to produce goods at a price the North Island consumer can pay because of the cost of transporting them. If such a state of affairs continues the arable fanning area of the South Island is going to be turned Into sheep country and production, reduced by millions of pounds.” An investigation, he said, would show what the position was, but if no means of remedying it could be found he was afraid tne South Island produce trade was going to be lost. If a committee were set up the personnel should not be confined ,to the Dominion executive. The inquiry should go far wider than freight alone, for he felt that shipping freights were not the only trouble, being in fact only a small part of it. He moved: That the matter be further inquired into and that the head office be advised accordingly. Mr. R. T. McMillan said that he had formerly held the same opinion as Mr. Mulholland, but that since meeting the shipping company representatives he was Inclined to think that big profits were not being made. The motion was carried.