MAMMOTH SHIPPING LOSSES

Evening Star, Issue 18332, 20 July 1923, Page 5

MAMMOTH SHIPPING LOSSES

—,——— THE COMMONWEALTH FIASCO

Although (says Iho ‘Ago’) tho taxpayers of Australia have been awaro for some time that the Commonwealth ships have been run at a heavy loss, tho immensity of the acknowledged losses (over £15,250,000) came as a great shock to many persons. But members of Melbourne shipping circles professed no surprise when acquainted with the huge deficit shown on the balance-sheet. One prominent overseas shipping representative said the losses shown were hardly sa great as he had believed them to be; but, of course, those compiling the balance-sheet could ho relied upon to err on tho right side—for themselves. Any person with overseas shipping experience, ho said, knew thoroughly well how foolish the Government was in attempting to run chips under Australian conditions in competition with ships under British register. All (ho Commonwealth ships were registered in Australia, and were in consequence far more expensive to run. Wages to Australian teamen were 50 per cent, to 75 per cent. higher than those paid to British seamen. There was also overtime to take into account. Tho overtime paid on Commonwealth ships was enormous. One little Government vessel paid on a recent short trip £4O for overtime. Thin multiplied two or three times would give an estimate of tho overtime that was paid on the “Bay” liners. Oh British ships there was practically no overtime. But, besides overtime, there was the victualling of the crew. Most British ships employed lavcai'3 where it was possible to do so, and these were far cheaper to feed than a full crow of whites. But oven with, so much in their favor, British shipping had been having a hard struggle to make both ends meet since tho war. So, with its expensive policy of running, was it any wonder that the Commonwealth Lino showed a heavy loss? The loss incurred by the line, ho continued, was a ghastly business, and would become more ghastly as time progressed, Tiio appointment of an independent board would not improve matters, Kilhcr the hoard would interfere seriously with the. management, or else the management would dominate tho board. Tho public would have to provide tho money for still further losses. There was no getting away from that. In a. weak attempt to justify the retention of the Commonwealth Line its champions had referred vaguely to it as being an advantage to Australia —for instance, In the matter of rates of freight. But how could any sane person believe that a lino which emild cater for only about 7 per cent, of tho Australian trade could bo of advantage to Australia? It was not; an advantage, and never could bo.