MASS BARGAINING.

Manawatu Standard, Volume L, Issue 88, 11 March 1930, Page 7

MASS BARGAINING.

OVERSEAS FREIGHT NEGOTIATIONS. DEAL INVOLVES THREE MILLIONS. (By Telegraph—Special to Standard.) WELLINGTON, March 11. ' One of the most important largescale business contracts affecting New Zealand’s prosperity will be revised in London shortly. The freight arrangements with the overseas shipping companies for the carriage of refrigerated produce from New Zealand terminate on August 31, and the renewal is to be negotiated in London. For the first time in the history of New Zealand’s overseas production, every branch of primary production requiring refrigerated space will have its direct personal representative in London to handle its business. Mr D. Jones, M.P., chairman of the Meat Export Board is already on his way to England; Mr W. A. lorns, chairman of the Dairy Produce Board leaves on Tuesday on the Mataroa; and Mr J. L. Brown, chairman of the Fruit Export. Control Board .vill be a passenger on the steamer Tamaroa, | leaving Wellington on Wednesday. I WELL-ORGAN ISED BARGAINING. New Zealand producers should reird with quiet confidence the outline of the coming negotiations with le shipping companies when, they lalise that the three representatives amed have the disposal of shipping asiness aggregating well over 3,000,000 annually. The Dominion’s overseas freight bill approximately as follows : —Meat •unsport, £1,600,00!); dairy produce, 1,250,000; fruit export, .0218,750; ital, £3,068,750. These figures are tfite conservative, because dairy ieights tor tho current season, in few of tho increased production of KSbutter, are more likely to reach and it is also likely that production will also show such &*&bnsioii as will make the figures 1 much smaller than they are in present freight on exported MhSmit to England is 3s 6d per case, and «# the current season’s export is likely Uggl roach 1,250,000 cases, the outlay of BBSaSI 8.750 tor freight is thus worked Brant. Fruit exporters consider they Klfeive a strong case for a reduction as freight cliarge represents so large V' a. proportion of the total value of the |«K|jjSsduct transported. The fruit on mWmiV.h 3s 6d per case freight is paid |||jpjltey realise from 15s to 20s. Butter vbears a freight charge of 3s 6d per ®P#6lb box and is valued approximately jpjfiit £3 10s, while cheese is carried at Bpibout 10s 3d per crate of 1631b5, which Kshould, even in these dull times, realise H!f The extent of which the export of Sgftprirnary products is organised in New H|Zealand has greatly simplified tho jp: operations of overseas ships, which have cargo definitely allocated to them and their itinerary fixed in consultant tion with the producers' representa- :> tives, so that every port of call pro--11 duces a profitable amount of freight. ■f An increasing degree of regularity | in the supply of cargo has enabled f tonnage to be handled with greater f ease and certainty. These advan- [ tages to the shipowner have of course been utilised by the producers to secure some share in the resultant economies, and both the meat and dairy industries enjoyed substantial reductions under the system. PREVIOUS SAVINGS. Dairy produce has been shipped under a three-year-old contract winch after its first year was subjected to a reduction of 7J per cent, while in the final year the reduction on the original rates is 12 per cent. The Meat Export Board has been able to demonstrate that since its inception meat freights have been steadily brought down until the present saving per mutton carcase, _ compared with tho year 1921 rates, is over 3s 6d per carcase, while the advantage gained in the transport of lamb is nearly 2s per 3»51b carcase. The savings made on meat freights by the 1922-23 and successive revisions under tho meat Board’s regime amount annually to £1,009,000, and no doubt further advantages are expected from the coming negotiations. . The producers were certainly never in a better position to exercise their mass bargaining power than will be apparent when their representatives meet the shipowners in London during August. _ . . Some of the leading New Zealand officers of overseas shipping interests are also making their way to London for tho important occasion.