PRODUCE FREIGHTS

Otago Daily Times, Issue 21981, 16 June 1933, Page 8

PRODUCE FREIGHTS

The views of the primary producers throughout the Dominion have no doubt been reflected in the resolution adopted by the executive of the Otago Branch of the Farmers’ Union with reference to overseas freight charges. Alive as they are to the benefit that would accrue to them from a. reduction of these charges, the farmers see an advantageous prospect in this direction looming up in the bid that is now being made by the Blue Star Line for a share in the business of carrying their produce to the Home market. The freight contracts are arranged by the overseas representatives of the New Zealand Meat and Dairy Produce Boards, and negotiations in connection with the renewal of them for a period of years are even now proceeding. The value of these contracts to the companies which secure them is, of course, very considerable, an amount

of £3,000,000 being involved, according to a statement by Mr James Begg, in the last arrangement covering a period of three years. Such a cost in freight charges falls heavily upon the New Zealand producer at a time when the prices realised for the Dominion’s exports are depressed, and the argument that he has suffered through the absence of any real competition among the shipping companies engaged in this trade is one that on this account is the more likely to appeal to him. Hitherto the contracts have been held by three companies known as the Conference lines, and the interest aroused by overtures which point to thp possibility of the appearance of another company in the field centres, of course, on the introduction of the competitive element. Naturally the concern of the Boards which represent the producers will be to secure for them the best terms in respect of freight charges that are available, with due regard to all considerations vital to the situation. The offer of the Blue Star Line, whether it be accepted or not, will ensure that the rates will be fixed on a competitive basis. That will be all to the advantage of the producers. Legitimate competition is a desirable thing, and it has to be borne in mind that the fixation of freight charges on produce has an influence on the rates chargeable on all other commodities. The Blue Star Line has made a point of announcing its preparedness to reduce all freights, both to and from New Zealand. The community cannot be indifferent to prospective advantages of this kind, provided they are a result of fair competition. It is not to be overlooked, however, that the shipping companies which have the carrying contracts at the present time have provided the New Zealand producers with an exceedingly good service on terms which were regarded as reasonable at the time the arrangement with them was completed. This fact, with such claims as it fairly permits to be advanced, is entitled to due consideration from the Meat and Dairy Produce Boards when they come to make their decision between these lines, whose vessels are so well known in the Dominion, and another line, unfamiliar in these waters, which hitherto has been largely interested in the meat trade of the Argentine but now seeks to expend its operations to New Zealand.