SHIPPING FROZEN PRODUCE

Otago Witness, Issue 3510, 21 June 1921, Page 11

SHIPPING FROZEN PRODUCE

DEPUTATION TO Sill FRANCIS BELL. IMPORTANT SUGGESTIONS MADE. MUST AWAIT MR MASSEY’S RETURN. WELLINGTON, June 16. A deputation representing tho freezing companies’ organisation waited on the Acting Prime Minister in reference „lo proposals that have been made regarding the obtaining of relief from the situation with, which producers are confronted in relation to the shipment of their produce. Mr do Lautour said that while freezing companies were entirely in sympathy wita what the Producers' Committee was eiuing, they askeet that the report from the committee should not ho taken as having been considered by the freezing companies. From t:;e point of view of freezing companies the suggestions made to the government by the committee were perhaps more detailed and more elaborate than was necessary. The point that the freezing companies had been anxious to see put in a prominent place waa the representation of tho Government on any board created. This li id been left out. lie thought it was a mistake. Tile matter came before tiie companies acutely when tile last contracts expired. They then found they were in a very helpless position. T here was nobody that they could approach to deal with tile shipping companies, which were now in a well-organised state, and they had to accept a contract that placed the producers in a bad posi. tion, because the high freights were based on increased costs. li they were to continue with a reduced value for produce it would practically deprive the producers of the fruits of their industry. The year for which the contract was made would terminate very shortly—at the end of next season. They would then he in practically the same posh ion as when this contract was made, unless in the meantime some organisation was set up. It would be quite impossible to protect the producers, and what he would suggest was they should bo content to take the lirst step to provide an organisation that would have power to contract with tho approval of the Government, also to charter. He did not think it would be necessary to enter into a policy of acquiring ships wholesale or building them. The world was full of unemployed shipping. They had reason to suppose that those ships could readily be placed in a condition suitable for the New Zealand trade at a flat rate per ton that would bo advantageous to tho dominion as a whole.

They suggested that the Government should consider the creating of a board with full Government representation, one of the Government nominees being the chairman. This body, composed of Government nominees •nd procurers' representatives, should have •ome standing to contract, and if a reasonable contract was impossible to take other I teja.

Sir Francis Bell: Would that be of any use without power to prevent competition, without power to coerce producers to adopt these ships as their vehicles? Mr de Lautour said it was hoped that the producers themselves would contribute, by voluntary assessment or otherwise, through their respective organisations, and this would itself act as a force for coercion. Sir’ Francis Bell said that the Government had had a very sad experience of attempting to control certain essentials of public supply. In respect of wheat, butter, and other matters, they found that competition came in at once against Government purchase, with the result that the Government lost. With regard to this vacant shipping of which they spoke, if a contract were made, unless it were coercive, someone was going to lose on that contract if other shipping came in in competition. Mr tie Lautour said that, personally, no had no objection to coercion on that line. Of course, it might make legislation more difficult. What he wished to avoid was any involved forecast of distribution of scrip or profits in the shipping proposal. It ap peared wholly unnecessary and created detail that was open to objection. They would like, to see some board set up with authority, and as it showed its capacity its power should be increased. It was only fair to shipping companies that there should be some body that could speak with authority. The Producers’ Committee, with members scattered all over the country, though it had its usefulness, could not deal with tlio question fairly. Mr Ewen A. Campbell said that many years ago a position similar to that existing at present arose, and a keen business man was sent Homo from Napier with a guarantee for the shipment of 200.000 sheep. With that guarantee ho was able to arrange with the Tyser Line to come out here to bring down freights to what producers considered reasonable. He suggested that they could get a guarantee from the freezing companies, w r ho were now much more combined than previously. Sir .Francis Bell: If you do not have power to coerce guarantors to abide by their guarantee, the wholo thing would burst in. Mr Campbell said it did not do so before. Sir Francis Bell said that if the whole of the freezing companies combined it would be a different matter. They really wanted some body that could take action if they were unable to contract. If the guarantee was not from the freezing companies it would not, be worth much. Mr de Lautour said they would arrange a guarantee, but in deference to the wishes of the producers they had sunk their own independence. •Sir Francis Bell : You do not handle the whole of the produce? Mr de, Lautour: No, we prefer to do something that will be representative of the whole of the producers, rather than something which might be said to be a monopoly. Sir Francis Bell said lie would very much prefer the alternative suggested bv the second speaker, because it would relieve the Government of all interference, but he was impressed with what Mr de Lautour said. “I am very much impressed, speaking for myself, witn the desirability of having a statutory body outside the Government, authorised and empowered to make provision for the export of our produce from New Zealand, with power to speak as the Government speaks, on behalf of producers, ko that we should be a powerful body, having a powerful trade to offer, though not able to dictate our own term's, of course, but able to insist upon fair terms. I am personally quite reach' to bring before my colleagues the necessity for legislation for that purpose. It has one great advantage from our point of view, that it substitutes a body. Tint the Government, for government. The Government had been called in to undertake all kinds of functions which were really not administrative functions, and if they could constitute a Chamber of Commerce with newer to contract, and act, they would be returning to something like Ha true functions of government, legislating and administering. His experience of attempts of the Government to provide for the community had been that everybody criticised the Government and nobody gave credit for any benefit that was derived.”

Mr Campbell: They never do.

Sir Francis Bell said that they did not want that, but any profit that was made at a time when Ihe Government was undertaking supply should bo credited against the time when dumping came in against the Government purchase. That was never dene. He understood that this was an effort to substitute for the Government, the persons concerned, to incorporate them, and give them a united front and a united power with Parliament behind them. He was entirely in accord with that, and would bring the proposal before Cabinet. Fie had not yet brought the proposals of the Producers’ Committee before Cabinet, because he had not the money necessary to meet the rather large liability the Government was asked to undertake. Also, the Prime Minister must be here to deal with a matter of that kind. It was useless discussing it in his absence.