SOUTH ISLAND PRODUCE

Otago Witness, Issue 4042, 1 September 1931, Page 15

SOUTH ISLAND PRODUCE

NORTHERN MARKET ENDANGERED HIGH COSTS OF TRANSPORT. CHRISTCHURCH, August 26. The likelihood of a collapse of arable farming in the South Island because trade with the north at competitive prices was made impossible by the high freight charges between the two islands was predicted by Mr W. W. Mulholland at a meeting of the North Canterbury branch of the Farmers’ Union. He advocated a close investigation of the position with a view to obtaining reduced charges. The subject arose in the discussion of a letter from the South Canterbury Executive asking for support of the following remit:—"That, in view of the low prices received by farmers for their produce, the Dominion Executive should be requested to set up a sub-committee to investigate

the freights, wharfage, and commission charges imposed when shipping these goods between the two islands, with a view to a substantial reduction in these and other charges.” Following the receipt of this letter, the head office of the Farmers’ Union had made representations to the shipping companies asking for a reduction of the charges, and had received replies from two of them concerned in the interisland and coastal trade setting out that present conditions made it impossible to take any steps in that direction. “ I think this matter should be taken up energeticallv,” Mr Mulholland said. “ The cost of the transport of farm produce between the two islands is too great, and if a conference or committee representing both the North and South Island Executives can be arranged, some light may be thrown on the problem and indicate a course of action. The price figures for some of our produce sold in the North Island compared with the prices we receive for it here margin of difference even greater than the farmer’s original return. We, in the South Island, will find it im possible to produce goods at a price the North Island consumer can pay, because of the cost of transporting them. If such a state of affairs continues the arable farming area of the South Island is going to be turned into sheep country and production will be reduced by millions of pounds. An investigation, Mr Mulholland said, would show what the position was, but if no means of remedying it could be found he was afraid the South Island produce trade was going to be lost. If' a committee were set up the personnel should not be confined to the Dominion Executive. The inquiry should go far wider than freight alone, for he felt that shipping freights were not the only trouble, being, in fact, only a small part of it. He moved—“ That the matter be further inquired into and that the head office be advised accordingly.” Mr R. T. M’Millan said that he had formerly held the same opinion as Mr

Mulholland, but that since meeting the shipping company representatives he was inclined to think that big profits were not being made. The motion was carried.