PROHIBITIVE FREIGHTS.

New Zealand Herald, Volume LVIII, Issue 17845, 28 July 1921, Page 8

PROHIBITIVE FREIGHTS.

"ROBBING THE PRODUCERS."

VIEWS OF FARMERS' UNION.

SOMETHING MUST BE DONE.

Addressing the annual conference of the Farmers' Union in Wellington, Mr. G. W. Leadley, the president, declared that something must be done to secure a reduction in shipping freights. During the last> year, with the exception of wool, the heavier classes of mutton, and also sheep, the market values of our exports have been fairly satisfactory," said Mr. Leadley. " Dairy produce has suffered a temporary relapse, but is now recovering, though no one expects the phenomenal prices of six months ago to continue. The price of frozen lamb has been excellent, indeed, except for a very brief period during the war, when lamb touched 2s per lb., we have' not had such a sustained demand at such a price as from 13d to 15d per lb. wholesale.

" But the tremendous cost of freezing and freight have simply robbed the producer pi the one opportunity which he had of making good som ß of the loss which he had sustained through the debacle in the wool trade. The position simply resolves itself into this, tHat had there been even a slight drop in the Home price for frozen lamb, our fat lambs wbuld not have been worth driving into the freezing works,' and nothing but stark ruin would have faced a very large proportion of our sheep > farmers.

' In view of these facts, the importance of the freight and shipping question cannot be over-estimated. At present all attempts to convince the shipowners that the freight rates are impossible of continuance seem unavailing. They protest that the cost of running the ships, the delays in discharging and reloading, and the lack of outward freight, really make the business unprofitable even at present rates. But something must be done. Our remoteness from the great consuming populations, which are ready "to buy and consume our various food and other products, make it imperative that some method must b* devised" to place these commodities at their disposal _ at a cost which does not mean practically the absorption of the entire margin of profit. " There have been many suggestions made and discussed, but at present, unless the Producers' Committee appointed by the conference held last March has formulated some scheme which has not yet been made public, I know of nothing definite. It is, I think, a fortunate circumstance that the Prime Minister .has been called to London, and is taking advantage of the opportunity of meeting the shipping magnates there. Something may eventuate, though I am a little doubtful of any material relief coming from that quarter. Thos e shipping combinations, are so powerfully entrenched behind their financial ramparts that they have long and successfully parried all attacks upon their position, and I fear it will be very .difficult to dislodge them. " The proposal that our Government should invite tenders from shipowners for a supply of a sufficient number of vessels to carry our trade for a period of, say, three to five years, with the right of renewal for a further period, and with the option of purchase, at any time during, or at the termination of the contract, seems to be a feasible solution of a difficult matter. Of course If such a scheme were adopted, legislation would be required giving the Cover" Tient the call on all available outward carso. At any rate this conference should not close without making some emphatic pronouncement on the subject, and doing something toward ending an impossible and ruinous state of affairs."

STATE-AIDED COMPANY. PLAN UNDER CONSIDERATION. [BX lELEGRXpH—PRES3 ASSOCIATION.] WELLINGTON/ Wednesday. At the Dominion Farmers' Union Conference to-day Mr. W. G. Poison moved: —" That this conference is in favour of a Dominion shipping company." He said the matter was under consideration by tbe Producers' Committee, which had contemplated proposing a scheme embracing a form of State aid, but he was not at liberty to divulge details. Mr. Matheson (Eketahuna) deprecated this secrecy. Mr. Marshall (Marton) said the Prime Minister had asked that details should not be divulged while they were still under consideration. Opposition to State aid was expressed by Mr. Duxfield (Morrinsville), who thought the farmers had suffered from too much State interference in the past. Discussion of this subject, will be continued to-morrow.'