Saving In Freight

Northern Advocate, 4 June 1947, Page 3

Saving In Freight

Fertilisers shipped by coastal steamer from Auckland to Whangarei cost Cl/12./- per ton in freight charges. The present superphosphate works in New Zealand had reached the peak of their productive capacity, said Mr Murdoch, member of the New Zealand Dairy Board. Previous attempts to establish fertiliser works in Northland had not met with success but it was obvious that if Northland was to get its fertiliser requirements it was necessary to establish works in the district. ,

Mr Murdoch gave figures to show increases in raw rock phosphates imported to New Zealand in recent years. They had risen from 300,000 tons in 1945-46 to an estimated 420,000 tons for 1947-48. This amount would provide 750,000 tons of super-, which was considered to be the extreme capacity of the present works. It was imperative that other fertiliser works should tie established in New Zealand and it was necessary that one should be situated in Northland.

Referring to subsidy costs he said £2,096,679 was paid from the WarExpenses Account and Consolidated Fund for subsidies of superphosphate costs during the year ended July 31, 1946. Of this amount £1.037.856 was recoverable from the Dairy Industry Stabilisation Account.

Fertiliser cartage cost £233,699 of which the industry paid £115.682. Lime cartage subsidies cost £230.000 of which £113.850 was recoverable, while Ihe cost of the lime was £3500. The industry paid £1733. From the War Expenses Account and the Consolidated Fund £2,619,208 was paid during the year and £1.309,126 of this was recovered from the dairy industry stabilisation account.

Road haulage at 1/- per ton mile to Whangarei cost about £5, making the cost of a ton ot super £l3 exclusive of subsidies.

To get the best results from fertiliser. a great reduction in cost was needed and this could not be accomplished under present conditions, Mr Murdoch contended.

“As. representatives of the dairy .’nduslry, we are satisfied hint somethin.!; must be done. The Dairy Board cannot take an active part in this scheme hut il does lend its moral support and is. keenly interested in the establishment of a fertiliser works »in Northland.” Mr Murdoch concluded.

Mr S. W. Smith, M.P. for Hobson, executive member of the Northland Dairy Association and chairman of the Bay of Islands Dairy Company, said that Ihe previous and unsuccessful attempt to launch a cooperative fertiliser industry in Northland was a great tragedy, but it would be a greater tragedy if the present scheme fell through. The conference, he said.--was not to seek a licence to establish the industry in NorniTancr, nor to seek assistance, but to seek a licence for the importation or muerhnery necessary for the work. Farming development which had occurred in Northland was due to the use of non-acid fertilisers. There was room for such an industry in Northland.

"We are afraid that the fertiliser, industry is growing into a monopoly and I had hoped that the farmers themselves would be given an opportunity to interest themselves in the new company," he said. Long haulages would be eliminated when works were established in Northland. This would be of great assistance because Northland farmers outside the 100 mile subsidy limit were being penalised. They were contributing to a subsidy Jn which they could not participate, 'and their fertiliser ration this year had come through too late to be of maximum benefit.

Mr C. F. Rosser, as president of the New Zealand Fertiliser Merchants Federation, said his organisation was aware of the potentialities of the North and was prepared to support the establishment of a works in this district.

He said the North African Gafsa product was ideally suited to Northland conditions. It was a finely-ground product which could be passed through a sieve with 120.000 holes per scj. in.

Commenting on negotiations between ihe overseas company's New Zealand agents and the Government lie said lie could not understand the reason for the long delay before a definite answer was given to the proposals. The company desired to import £IO.OOO of machinery to ln| .v it in New Zealand with the exception of £SOO worth.

He was unable to understand why permission bad not been granted.