DUES ON GOVERNMENT CARGO

Otago Daily Times, Issue 23517, 3 June 1938, Page 12

DUES ON GOVERNMENT CARGO

An interesting aspect of the exemption from the payment of harbour dues of goods carried for the Government has been raised in connection with the landing of a consignment of Cook Island oranges at Lyttelton. The Harbours Act contains provision that dues shall not be payable on “ goods consigned to and the property of the Government of New Zealand, but not including goods supplied by the Government to any person for commercial purposes.” The reasonable view would seem to be that Government oranges landed for commercial distribution could not receive exemption from port charges under the provision which we have quoted. The consignment of them to the Internal Marketing Board may present a technical loop-hole for the evasion of dues, but that would involve an ignoring of the commercial aspect of their disposal to inland traders. It is pertinent in this connection to remember that the Government accepts the obligation to pay harbour dues on produce exported by it under the guaranteed price scheme. Harbour boards would be very glad to be able to include in their revenue returns the payment which they do not receive on exempted Government goods. The loss sustained by the Otago Harbour Board on that account between the years 1914 and 1937 amounted to £116,557 on inward and £6857 on outward cargo, a total of just on £124,000. Whatever may be said about the propriety of the general rule of the exemption of Government goods from port charges, the question of the extension of the principle that seems to be raised in the position that has been discussed by the Lyttelton Harbour Board is a new issue of importance in which all the harbour authorities of the Dominion must be interested, and one respecting which they are entitled to press their claims upon the Government for equitable consideration.