Producers’ Shipping Line

Hawke's Bay Tribune, Volume XI, Issue 243, 18 October 1921, Page 3

Producers’ Shipping Line

DISCUSSED BY FARMERS’ UNION. MR ANDREW BUCHANAN’S VIEWS Palmerston North, Oct. 16. At the meeting of the Manawatu Subprovincial Executive of the Farmers’ Union, held at Palmerston North on Saturday, Mr Andrew Bychanan (president), in referring to the proposal of the Dominion Executive to form a producers’ shipping line, moved the following motion:—“That this meeting is not in favour of the suggested producers’ shipping fleet, because of the inequity of the taxation as compared with the proposed ownership, but suggests that the Government should submit proposals to the chambers of commerce and the Farmers’ Union for consideration.” In moving the motion he said that the Producers’ Shipping Committee’s suggestions would soon be under consideration by the Government, and in the meantime it appeared desirable that some features connected with them should receive earnest consideration from those not on that committee, and whom it had not consulted. All wool, beef and mutton producers were hard hit through poor markets, and would be restless under the imposts because they were unable or found it exceedingly difficult to find from present returns sufficient to cover mortgage interest, taxes, and current expenditure. There appeared to be an almost if not altogether insurmountable difficulty in carrying out the suggested provision that money compulsorily collected should be effectively credited as share money to the producers who pay directly through the special tax, and indirectly through the Government subsidy, and to the rest of tho public who were responsible for their part of tho interest and sinking fund on the pound per pound expected from the Government. Freezing and other companies who did the producers’ business would deduct the impost from prices paid to the farmers, and benefit directly from the capital thus involuntarily subscribed. Freezing company shareholders and financiers—some, perhaps many of them,

not British subjects—might thus exercise voting power as owners of shares, for which they themselves would not have provided the money. That could and must be prevented. Further, was it desirable that any one class should benefit from such a State-aided quasi-mono-poly of shipping? Was it not more to bo desired that the whole community should share the risks with the possible profits, ami that the Government should be asked to consult representatives from the chambers of commerce, harbour boards, farmers’ and other unions, and the general public before taking the necessary action to provide a mercantile shipping fleet by charter or purchase, and protection for the same? Mr Polson, the Dominion president, promised that the speaker would have an opportunity of speaking at the Producers’ Committee, but found it inconvenient to allow of his doing so; and the present was his only opportunity to call attention to what he thought were some of the grave weaknesses in its scheme. They recognised that they must have ships, but they should proceed -wisely, even if slowly, towards the ideal of the Union Jack fleet composed of flexible units, as a prelude possibly towards still wider international mercantile shipping agreements working in a sensible friendly action for the welfare of the nations. ■ New Zealand had wonderful wealth, in her climtfte, her soil, her rivers and seas. She needed a wealth of wisdom and self-sacrifice from each member of her adult population to make her prepared for the working of economic law. It was decided to refer the matter to the various branches of tho union for consideration, and to take the discussion thereon at the next meeting.