Unfair Competition Saps N.Z. Sea Transport

Northern Advocate, 24 July 1943, Page 4

Unfair Competition Saps N.Z. Sea Transport

“Railway competition has for many years interfered seriously with the trade of a number of ports, and as a result, harbour boards after having developed their ports, have had to watch the goods on which they depend for their revenue, being diverted to the railway owing to the fixing of special rates of freight designed to make carriage by rail slightly cheaper than by sea, irrespective of whether those rales were economic or not. That such rates cannot all he economic is shown by the fact that some commodities are carried from one port to another at a lower rate Ilian to intermediate stations.” This statement is contained in a letter from the Otago Harbour Boat'd to the Harbours’ Association, and transmitted to the last meeting of the YVhangarei Harbour Board for consideration. Whangarei decided 1o give 100 per cent support to the Otago Board in its effort to improve the present unsatisfactory position. It was suggested that a conference be called between those concerned in order to eliminate uneconomic cut-throat competition between road, rail and sea transport. Relies On Sea

Confirming the letter Otago states: “It is not the present position that this Board •has in mind—it is post-war trade, and it is felt that unless a strong ease is carefully prepared now for submission to the proper authorities, the plight of many boards will become increasingly serious if/they are subjected to unrestricted competition after the war. “The New Zealand roast lends itself to the use of small coastal,’vessels, which can convey goods along the coast cheaply and efficiently. The effect of railway competition lias been to throw a number of these vessels out of commission, and to divert llieir crews to other walks of life. New Zealand must to a large exfat depend on the sea for her communications. Coastal shipping is an essential industry that should he encouraged and fostered, and not allowed to languish by reason of competition by a State-owned service, whose rates can he reduced, npparemly without regard to whether they are economic or not. for the special purpose of increasing the tonnage carried iyn ilie railways. The remarks in regard to the railways also apply to road transport, and this aspect will no doubt be considerably accentuated after the "The detrimental effect of rail and road competition are fell: (1) By harbour boards in tlie loss of revenue on the cargo, diverted from its usual channel, and on the ships that carried such cargo, also in (lie payment of capital charges on harbour improvements now only partially utilised. (2) By the Dominion, ip ilia! there is now loss incentive to cater for the coastal trade and consequently there arc fewer vessels available for national purnoses when reouired —i.e. the nrosoni conllicl in the Pacific where Britain and the Allied nations' are so badly in need of small craft. (3) By seamen and waterside workers in the loss of work and wages. (4) By coastal shipping companies who. after Juicing built up the necessary organisation to cater for the coastal trade, find themselves faced with the problem of maintaining their vessels and organisation in the fact? of a decreasing volume of cargo.