SHIPPING DEPRESSION

Evening Star, Issue 19795, 20 February 1928, Page 4

SHIPPING DEPRESSION

RESULT OF TRADE BARRIERS COMMONWEALTH LINE’S OPERATIONS. LONDON, February 18. Lamenting the disastrous effects of the coal strike and the poor passenger and cargo earnings, the annual report of the Chamber of Shipping discloses

that the conference generally proposed an increase of rates, but refrained in deference to the wishes of merchants and manufacturers. There is insufficient trade to fill,the world’s ships, and shipping will continue depressed until the world realises what is the true economic policy, and trades, instead of barring trade, by tariff. Referring to tho Commonwealth Line, the report says it is a purely hypothetical claim that by reducing freights 10s in 1923 the line saved Australia £2,000,000. In any case this saving was more than offset by depreciation and losses amounting to J&13,000,000, which the Australian taxpayer makes good. The Commonwealth Shipping Board was unable to right matters, and realised that profits could be earned only by increased fares and freights, but as tho line had a disciplinary mission ordinary business methods were ruled out.

The report concludes,by quoting the board’s doubt whether it is possible to retain both the Australian mercantile marine and Australian seafaring conditions. In addition, it regrets that the Commonwealth did not adopt the Federal Accounts ''' inmittee’s recommendation to abolish coastal restrictions against British ships, which are so foreign to the Empire spirit and damaging to Australian interests to such an extent that there is growing up in Australia a demand for their abolition, especially as Australian tonnage is unable to fulfil local needs.