SHIPPING COSTS.

New Zealand Herald, Volume LXVI, Issue 20252, 11 May 1929, Page 14

SHIPPING COSTS.

HEAVY INCREASE DEPLORED. DISCUSSION IN AUSTRALIA. "Oversea, and particularly British, shipowners view with dismay the heavy direct* increase in yearly costs, appioxirnately £120,000, represented by the rise in the Australian basic wage and the reimposition of the child endowment tax in New South Wales," says a statement issued by the chairman of the Oversea Shipping Representatives' Association last week. "While the direct rise in cost due to the higher basic wage will represent approximately £IOO,OOO & year, it is impossible accurately to calculate the heavy indirect increases in connection with ships' stores, tally clerks, dumping, etc. In the same way the estimate of £20,000 a year additional cost from the operation of "the New South Wales child endowment tax docs not include indirect charges. "The position is peculiarly unfortunate to the British cargo lines running to Australia by reason of the deferment, at the request of the Prime Minister, of intended freight increases. These charges were held up pending the visit to Australia of representatives of British oversea shipping and their conference with Australian importers, exporters, and producers, in the hope that mutual co-opera-tion would either minimise or render unnecessary the intended increase in freight. "At the recent joint conference in Sydney between representatives of shipowners and of producing, importing and exporting interests, figures compiled by leading British accountants wero submitted, showing that in the last three years a loss of £3,000,000 had been sustained by British cargo and cargo-pas-senger lines trading between tho United Kingdom and Australia. Tho steamers involved in the loss wero worth more than £10,000.000. Figures also compiled by the British accountants showed that the increase in freight earnings represented by the proposed higher freight charges would bo only 7 per cent. _ "But the expenses which the committees wero to endeavour to reduce have now been increased by this new impost of £120,000, which will render much moro difficult the task of lessening costs, and thus avoiding an increase in freight rates.