HIGHER CHARGES PROPOSED

Dominion, Volume 38, Issue 202, 24 May 1945, Page 6

HIGHER CHARGES PROPOSED

Wharfage At Port Of

Wellington

HARBOUR BOARD LOSS ON WORKING

A recommendation that the necessary approach be made to thei Price Tribunal for permission to make increases in wharf charges at the Port of Wellington was approved by the Wellington Harbour Board at last night’s meeting. Mr. T.’ R. Barrel-, as one of the country members, dissented, taking the view, that before the approach was made there should be full-Investigation of every possibility for economy. “The loss on working .for the six months ended March 31 is £63,578, and it is not anticipated that during the remaining half of the year there will be anv improvement, which means a loss of approximately £127,090 for the full 12 months,” said the chairman, Mr. W. H Price, in moving the adoption of the recommendation. “To this must be added wages increases which will come into operation during the cun-ent year, estimated to amount to £38,000 per annumProgressive increases in wages over the past few years, together with -these additional increases will total approximately £lOB,OOO per annum. Further, the costs of materials have risen sharply over the war years. From this it is apparent that this board cannot continue with its low by-law charges, which have not been increased since 1937. . “In May, 1943, the board decided, in view of tlie extensive wear and tear of plant and machinery because of war conditions and the inability to obtain materials and labour for adequate maintenance, to establish a repairs and maintenance reserve fund. This fund now stands at £57,047. which is considered to be. far below the sum that will be required. While it was hoped to augment this fund each year, no .such provision has been made this year. “The recommendation now before the board is to increase bylaw charges to return a srtm of £170,000, but this does not provide for any surplus on present trade returns, nor does it include anything more than the usual transfers to insurance funds, and so on,-but is estimated merely to balance our budget. While the step is regrettable, the recommendation should have the unanimous support of the board.” Principal Increases. The principal increases a ton in the proposed schedule are as follows:— General cargo: Inward from 4/- to o/-; outward, from. 2/- to 3/-; transhipment, from 4/6 to 7/-. . . , Special cargo (requiring extra labour) : Inward, 6/3 to 9/-; outward, 3/to 4/6; transhipment, 7/- to 10/6. Fuel oils in bulk: Inward, 2/b to o/and 1/9 to 2/1; outward, 1/3 to 1/6 and Bd. to 10<l.; transhipment overside, id. t 0 Wool and skins, a bale: Inward, 1/to 1/6; outward, Sd. to 1/-; transhipment, 1/- to 1/6Hemp and tow, a bale: Inward, 9d. to 1/1; out ward, (id. to 9d.; transhipment, lOd. to 1/3. Skins in bundles, a bundle, up to 10 cubic- feet: Inward, 6d. to 9d.; outward, 2d. to 3d. „ , . Butter, cheese, and fresh fruit, a ton: Inward, 3/9 to 5/6; outward, 1/3 to 2/-; transhipment, 4/- to 6/-. ' Tallow, pelts and hides in bulk, a ton: Inward, 3/9 to 5/6; outward, 1/6 to 2/3. increases are also to.be asked lor on charges for port facilities, such as storages (25 per cent.), use of special plant, waler supply, and the harbour improvement rate. Charges to shipping are also anioug the items to be submitted to the tribunal for approval of increases as follows:-— Port charges, a ton, from 3d. to 4d. Mooring or removal fees, a ton, from id. to Id. Berthage, a ton: Vessels under 160 tons net register, a day, from 4/- to 5/-; vessels 100 tons net reg, and over, a day, Jtl. to ifii.; laying-up rate to be at quarter rates. Permission is also to be sought tor increases in charges for receiving and delivering Government cargo'according to the following schedule : — General cargo: Inward, from 3/1 to 4/4; outward, from 1/5 to 2/-; transhipped, froni'4/- to 5/8. Hardwoods, per 100 super feet:. Inward, from 1/- to 1/5; outward, from Sd. to lid.; transhipped, 1/3 to 1/9. Auckland and Wellington Costs. The chairman’s motion was seconded pro forma by Mr. W. J. J. Blyth, w.io said, speaking as a representative of the merchants and nnpoters, that though, a substantial increase was inevitable, he would like to see the increases inorc_equitably distributed. They required £170,000, :iu average of 36 per cent, on all chargee, but the merchants were to be called ou to pay an increase of 50 per cent. He compared costs as in Auckland and yveilington. In Auckland the ship paid all charges till the goods were stacked :n the shed, in Wellington the merchant paid all charges ex the ships sliugs, yet the freight charges in both ports were the same. "Is that any reason why Wellington should be penalized by approximately 2/3 a ton for this service, which appears inevitable if the present system of handling cargo continued?” asked Mr. Blyth. "In the past the board has discussed the relative merits as between Wellington and Auckland, but has not sceu tit to make any change.” Mr. AV. Appleton agreed that further exploration should be undertaken,, but said that' the increases had to be made as soon as possible. It would take at least three years to overtake the losses of the past six months, and the losses likely to be sustained in the next six months. It might be well, he said, to adopt tlie Auckland system. Mr. R. A. Macalister said the board certainly could not continue to sustain loss at the rate of £105,600 a year. Mr. T. R. Barrel- said that as a representative of the primary producers he must oppose any proposal which would involve further increases being loaded on primary producers. Rather than ask the Price Tribunal to agree to these increased costs for a type of service tae board did not have to provide, lie would prefer to consider adopting the Auckland system, where the board did not act as wharfingers and therefore was not concerned with such costs, . . Mr. J. O. Johnston said the position would have arisen earlier but for. the presence of the America ns. The position had been foreseen several years ago. 'i'he chairman said that the boat'd was losing 1/6 ou every ton of inward cargo from the United Kingdom. He would be .sorry to see (he system of cargo handling used at Wellijigton, which bad been in. opera lion for 50 yehrs and hal gained such a good reputation in (lie shipping world, abandoned. 'l’he money paid for the labour had to be provided either by the merchant or the board, and it had to be passed on to the consumer m either case. ... .Mr. Johnson said the service given in Wellington compared very favourably with that in Auckland, where there was no lifting apparatus in the sheds, for instance. The situation in Auckhiml was chaotic. , , 'i'he board agreed to the proposed approach to the Price Tribunal, Mr. Barreldissenting.