FRUIT FREIGHTS

New Zealand Times, Volume LII, Issue 12252, 25 September 1925, Page 3

FRUIT FREIGHTS

AN UNPAYABLE LINE GROWERS AGAINST RECENT INCREASE “DON’T WANT TO CRIPPLE INDUSTRY” For a number of years the Railway Department has been carrying fruit over long distances at a very low and unpayable rate. Recently when tbs railway tariff was revised the department put the freight up to what it deemed a payable point. The Hawke’s Bay orchardists woke up to the fact fate, and yesterday they sent a deputation to the Prime Minister and put their case to him.

Tho deputation was introduced by Mr McKay, the member for the district, who stated that the freight affected about 12,000 tons a year.

Sir George Hunter explained that an element entered into this industry that did not affect to the same extent other producing industries, viz., that of climatic changes. He also stated that many had entered into this industry because of the special advantages provided by the Railway Department.

CASE FOR THE GROWERS The case for the producers was put by Mr R. Paynter, who said the industry had. been built up on the old rates, and that the fruitgrowers would have raised objection to the increased rate but for the fact that they had not been able to get a copy of the proposed tariff in time to get the growers together to discuss it. The new rates, he said, would he a special hardship to Hawke’s Bay. There was over a hundred per cent, increase on the freight to Auckland to which 2000 tons were railed every year. Previously the growers had been able to get timber for the cases over a certain distance free, but now they were being charged so that made the cost still greater to them. They did not, however, object to paying that freight. He quoted figures to show the importance of the freight from Hastings, and expressed the opinion that the dej>artment should he content with an increase in the freight of only 50 per cent. The longdistance rates by ship from Napier were lower than the railway rates, and they might eret a lower freight still if they could fill one of the small steamers. He read a telegram from Otago fruitgrowers stating that they supported the Hawke’s Bay growers in this matter. The latter were considering the f.ame tiling in connection with sea freight. Mr Coates: Yes. Good on them! They always have done so. He added that it was a question whether the department should carry the fruit at a loss. They could get any amount of freight if they carried it up *md down the lines for nothing. The other point was what was going to be the effect on the industry itself, and whether the people were being benefited. He asked what did the increase mean? Mr Paynter said that instead of paying 20s per ton, plus ten per cent,, they would now be paying 50s per ton. Mr Sterling, a member of the Railway Board, who was present: For over four hundred miles.

Mr C. H. Slater, a Hastings fruit merchant, supported the application, as did Mr D. S. McLeod and Mr Horn, M.P., Otago. Mr Coates: Well, Mr Sterling, what do you think about it?

THE DEPARTMENTAL VIEW ' Mr Sterling said the old rate was one that it was never contemplated should be used in the way it had been used by the industry. It had been instituted to get the fruitgrowers into closer touch with the consumers, and consequently the rate which wa9 economically unsound bore no relation whatever to the services rendered. It could only be justified under the policy under which it was instituted. That had not happened. The rate had been used to send huge quantities of fruit to distant and the- department found itself carrying fruit from Hastings to Auckland, over 400 miles, at 8d for 6olb. He had never heard it suggested that that was an over charge, and he had not heard it suggested that the rate proposed was an overcharge. Necessarily it would alter the position of the industry, but those things had a habit of adjusting themselves. It was a question of distribution,. and the new tariff would probably guide the fruit into markets that were the nearest to which they were grown. He suggested that they'should give it a go for the season. Then the department would be willing to sympathetically consider representations if based upon facts. At present the representations were based upon apprehensions, and the department was entitled to a reasonable rate for the service it performed. He woula be a bold man who would suggest that 60s a ton was too high a rate from Hastings to Auckland, especially as owing to the perishable nature of the freight special transit had to be arranged and special wagons built for it Furthermore, the freight pressed heavily on the department at certain periods, and then became non-existent. The department had had similar proposals in regard to other commodities, and had been able to come to an agreement in regard to them. If it received constructive proposals it would consider them. 1 Mr Horn said he agreed that the department must make the railways pay. lie suggested that they should try a lower rate than that in force for one year. ■ Mr Coates: What wo don’t want 1o do is to cripple the industry. On the other hand the working expenses have gone up by 80 per cent., and on prewar expenses by 150 per cent. Mr Sterling said if there was any constructive suggestion by which Ihe railway could be reasonably remunerated it would receive consideration.

Finally, on Mr Coates’s suggestion, it was agreed that the deputation should discuss the matter with the department.