NEW SHIPPING CO.

New Zealand Times, Volume XLVII, Issue 10896, 10 May 1921, Page 5

NEW SHIPPING CO.

PROPOSALS PUT FORWARD

GOVERNMENT AND THE 41 MILLION LOAN. EXPORT AND I IMPORT TAX. Various local bodies are being approached in connection with the proposed shipping company, of which details have been forwarded by Mr Bernard Tripp, of Timaru. It will be re.membered that some time back Mr Tripp described in the columns of the “New Zealand Times” the preliminaries in connection with the scheme, which now appears to be taking more concrete shape. The proposals now put forward by Mr Tripp for consideration are: The Government to float a loan in England next November of 44 millions; to be called a Shipping Company Loan. This loan to he handed to tne Produce ere’ Committee in Wellington (who would form a board consisting of five exporters and five importers), with the object of buying 20 steamer's of ten thousand tons each, and have them converted into ■ insulated boats with some passenger accommodation. They can now be purchased at £l2 per ton, or less, and the cost of insulation is about £BO,OOO, so wotild stand in at no more than £200,000 per steamer. The Government to pass an Act this next session imposing an export and import tax of two per cent. This would bring in on an average about £600,000 a year on oversea trade, which would be used for paying interest and sinking fund. The importers and exporters would more than save this tax. by reduced freights, and when the 44 million loan was paid off the tax to be removed.

TH% Producers’ Shipping Company, after providing for a renewal and depreciation • fund, to put all profits towards reducing freights and passenger fares- instead of paying dividends. The Government to have the right to appoint two nominees on the Producers’ Shipping Company board until the loan was paid off. This would take about twelve to fourteen years. As probably the importers have for some time ahead, I would suggest that they should he exempted from the two per cent, tax f ■-w twelve months after it came into i-. ce for the exporters.