LOADING COSTS

New Zealand Herald, Volume LXXV, Issue 23112, 10 August 1938, Page 15

LOADING COSTS

EXPORTS TO BRITAIN MINISTER'S CONTENTIONS PRODUCERS NOT PENALISED [BT TELEGRAPH —SPECIAL REFORTERI WELLINGTON, Tuesday Labour costs and other charges involved in the transport of produce from New Zealand to the United Kingdom were referred to by the Minister of Agriculture, the Hon. W. Lee Martin, during the financial debate in the House of Representatives to-night. It was obvious, be said, that the cost of loading produce at Dominion ports was only a small part of the total labour costs, and a mere fraction of all the costs payable for the shipment of produce to overseas markets. "From time to time," the Minister said, "it has been stated by those opposed to the Government that the increases in wages which have been paid to waterside workers in New Zealand detrimentally affected the scale of charges for the carriage of primary produce to the United Kingdom, "Assertions Unfounded" "It lias also been stated that because waterside labourers in Australia are either paid lower wages or are more efficient the Australian farmers are able to obtain concessions from the shipping companies which are denied to the Dominion producers. These assertions are totally unfounded." Mr. Lee Martin continued that labour charges involved in the transport of goods by sea could be divided into five classes —managerial, clerical, cost of manning the ships, loading costs and discharging costs. Managerial costs were wholly under the control of the shipping companies, but the clerical staffs were now under Arbitration Court awards and the basic wage provisions. However, these charges covered services much wider than the of primary produce. The cost of manning vessels belonging to the companies which had entered into freight contracts with the New Zealand produce boards was outside the influence of the New Zealand Government. The loading costs were influenced by the wages and conditions relating to waterside labour in New Zealand, but the discharging of the cargo was carried out by British dock workers. Awards by Agreement It would thus be seen, the Minister stated, that the labour costs of the shipping services were only partially affected by New Zealand conditions. The clerical workers' award and the waterside workers' award, which gave | the men increases in wages, were made after the signing of the present freight agreement. In both cases, the wages and conditions were fixed by mutual agreement, so it could not be claimed that the Arbitration Court imposed conditions above those which the shipping companies were willing to concede. "The fact that the rates on Australian imports have been increased must be borne in mind when one is comparing the New Zealand and Australian rates for export commodities," Mr. Lee Martin added, "because it would appear that any concessions which Australia received in its last agreement were more than offset by the increased charges oir its inward trade. Even when the concessions gained by Australia are considered, New Zealand has still an advantage in freight rates on the principal exports, with the exception of wool." After analysing the Australian and New Zealand rates in detail, the Minister said there were no grounds for suggestions that New Zealand producers were being penalised because of any loading costs which might be incurred at this end.