SHIPOWNERS’ PROBLEMS

Otago Daily Times, Issue 27078, 12 May 1949, Page 9

SHIPOWNERS’ PROBLEMS

Private shipowners should be allowed to acquire new tonnage at an economiccost to build up their depleted fleets the chairman of Howard Smith. Ltd., m A Howard-Smith, said at the annual meeting in Sydney last week. bie Commonwealth Government persisted in setting up its own shipping line, it could be taken for granted that its operations would result in a heavy loss, which the taxpayer would have to defray. Australian shipowners were trying to induce the Government to bring the cost of Australian-built tonnage into line with overseas prices, he said. The price paid by the company s subsidiary, Australian Steamships Pty„ Ltd., for the 6300-ton cargo vessel Balanv built by BHP, was £487,500, which was more than the delivered price of a similar vessel built in the United Kingdom. Australian coastal shipping had been running at a loss, Mr Howard-Smith said, and but for the inclusion in the accounts of Australian Steamships Pty„ Ltd., of income in respect of two previous years, the company’s operations in 1948 would have shown a substantial loss. Indications were that present freight rates would not cover operating costs.