AUSTRALIA'S SHIPPING

Evening Post, Volume CVI, Issue 85, 20 October 1928, Page 8

AUSTRALIA'S SHIPPING

THE NAVIGATION ACT (From "The Post's" Representative.) SYDNEY, lltlr October. The policy speech delivered by the Prime Minister (Mr. Bruce) was largely one of platitudes.-, However, Mr. Bruce broke new ground when he promised to repeal the coastal clauses of the Navigation Act. These potions of the Act were placed on the Statuto Book with the very best intentions, but they have failed to effect the purpose for which they were designed, and they have had serious effects on isolated parts of the Commonwealth, particularly on Tasmania. The clauses were intended to create an Australian mercantile marine by providing that no passengers or freight should be carried in coastal vessels whose crews were not paid (and given certain other advantages) in accordance with the provisions of Australian awards. If this provision were not made British, and foreign vessels, with rates and conditions inferior to Australia's, would have been in a privileged position, and would have been able to undercut Australian companies and thus monopolise the trade. As the "Sydney Morning Herald" has pointed out, the remedy proved worse than the disease, and it created two monopolies instead of one, "the monopoly of interstate shipping companies on the one hand and the Australian seamen on the other." Such was the finding of the Committee on Public Accounts appointed last year to inquire into the matter. As a corollary to the establishment and maintenance of an Australian mercantile marine, it was intended by the framers of the Act that the transport facilities between the States should be improved; but just as the main intention has been frustrated, so has the ordinary.. The coastal clauses, so far from improving the transport arrangements, have interfer•ed with them so gravely that on'several occasions they have narrowly escaped a breakdown. As an alternative to the '-" existing clauses Mr. • Bruce proposes that protection shall be given through tariff provisions to vessels complying with Aum tralian standards of .wages and conditions. "The Government believes," he 3aid, "that if a rate of duty were imposed on passengers and cargo carried in competition with Australian shipping around our coast sufficient to give protection to our .industry, we should secure fair competition, resulting in a more efficient service and cheaper rates j and' freights." It is proposed to reI fer to the tariff board, the question as to the rate which should be imposed on British and foreign shipping engaging in the coastal trade. From the revenue that would be received, local shipping companies would be subsidised, especially those trading with isolated parts of the Commonwealth. This, whilst assisting the Australian shipping industry, would also serve to assist the development of outlying parts and backward portions of Australia. The imposition nf duties will follow tho general lines of Australia's tariff policy.