FREIGHTS ON RAILWAYS.

New Zealand Herald, Volume LXV, Issue 19860, 2 February 1928, Page 13

FREIGHTS ON RAILWAYS.

THE CARRIAGE OP GOODS, LOCAL AND IMPORTED. POLICY- OF PREFERENCE. NO CHANGE TO BE MADE. [BY TEEEGRAI'H.—OWN CORRESPONDENT.] WELLINGTON, Wednesday. 'I ho policy of Uie Government in regard to giving preference to New Zealand articles carried on the railways as against imported articles: was set out in a letter from the Prime Minister, received at Iho meeting of the executive of the Ntfiv Zealand Farmers' Union to-day. At the last annual conference of the union a remit expressing (he view that the railways should not be used for tlio purposes of protection was carried. The Prime Minister stated that the matter was one that was constantly fore the Railway Department. " On the one hand," said Mr. Coates, "there are determined and united requests for concessions in rates on New Zealand commodities in order to foster local production and industries, and on the other it has been found that when such concessions have been granted requests immediately arise for all commodities of tho kind to be conveyed at the concession rate,, which, if granted, would mean that, th» concession rate would become the basis rate. "Recognising that the local industries require assistance in order to enable them to pass through the initial stages and become firmly established, it has been the Government's policy in New Zealand to give preference to local articles, but when the developmental stage has; been passed it has been found extremely difficult to get the parties to recognise that the pre-* ferential rating was only of a temporary character. Two-way Traffic Provided. "Other points in favour of lower rates on local goods are that the increased population required in the production and manufacture of articles produced locally gives increased business to the railways in passenger traffic. Again, in most cases, the railways cariy the raw, as wdl aa the manufactured, articles, and locallyproduced articles are usually conveyed longer distance*, by rail to the point of' consumption or distribution than- the imported articles. Generally speaking, locally-manufactured goods provide twoway traffic, and this has an influencs oa the department when fixiug rates. "To reduce the rates on imported goods to those applicable to New Zealand poods would represent a loss of approximately £70,0C0 per annum in railway revenue and the accounts for the New Zealand railways show that there is no margin for granting such a reduction. Ary levelling of rates as between imported and local goods would, therefore, necessarily be in the direction of raising the charges on the New Zealand articles, and it has to be considered what a disturbing effect there would be on New Zealand industries if the rates on local commodities were raised simply to bring them into lino with the rates on . imported articles. Far-reaching Results. "There is no reason for reducing the rate on imported fruit, which is already carried at a very low rate, tmd it would not be wise at this juncture to raise the rate on New Zealand fruit simply to bring it into line with the imported article. Industries such as sawmilling, coalmining, paper-making, and fruitgrowing serve to divert settlement from the main centres, especially when they receive benefits of favourable railway gating. This must be of distinct advantage to a country such as. New Zealand. ; " I wish to emphasise the very farreaching results that would follow an alteration such as is suggested in _ this remit. Tho department finds there is an increasing tendency for requests for assistance to local industries, and this is manifest in many cases where tha department is already granting concessions to local articles and carrying them at rates that are barely remunerative. Notwithstanding this those concerned are continually pressing for further concessions. Many businesses and industries havebeen established and built up under existing conditions and serious complications would immediately arise if any drastic alteration was made in the scale for carriage by rail, such as proposed by the remit. The position has been so consolidated under existing conditions that the effect on trade of an alteration is very difficult to foresee. "After having given the matter careful consideration I regret being unable U> give, effect to the request conveyed in the resolution."