COASTAL FREIGHTS

Patea Mail, 3 November 1937, Page 2

COASTAL FREIGHTS

DAIRY BOARD’S OPINION “We do not think that the payment of coastal freight by the shipping com. panics increases the ocean freight from bigger ports,” istated Mr. T. Brash, secretary of the New Zealand Dairy Board, in a letter to the Taranaki County Council meeting on Monday. The letter was in reply to a request, from the Council for information regarding the basis on which shipping contracts from coastal ports were baa. ed. It was mentioned at last month’s council meeting that there was a differential rate of freight payable on produce from Taranaki shipped through the New Plymouth and Patca ports, which militated against producers ship, ping through the New Plymouth port. “This is apparently brought about by the fact that 'while the freight charges arc based on the same service, the cost of transhipment from Patea coastal boats at Wellington is not a charge against produce shipped at Patea, this extra cast being met by a differential increase in freights on produce from deep.sea ports,” the council pointed out. “The deficiency in the cost of working the New Plymouth port is made up by levying a spec, ial differential rate over the various areas in the New Plymouth harbour district.

‘lt is accordingly felt," the council added, "that a considerable annual sum in excess of the annual costs on produce from North Taranaki has to be met by ratepayers in this area. It was stated that if Patca produce was shipped through New Plymouth this added burden would be considerably reduced and would lead to the discontinuance of the rate levy. "

MADE BY GOVERNMENT Mr. Brash said it was true that the Dairy Board did handle freight con. tracts for overseas produce, but all this responsibility and work was taken over by the Primary Products Marketing Department and the last shipping contracts w-,re made by the New Zoa. land Government. "We are not aware that there was any change, however, in the arrangements which wore made by the board so far as conditions were concerned," lie continued. "The arrangements in connection with coastal freight was that the shipping companies elected to pay coastal freight on dairy produce from grading ports where they were not able, or did not wish, to‘ship direct. You 'will no doubt be aware that for many years the coastal freight wav paid on all.of the dairy produce ship, ped from New Plymouth, as it is only in recent years that direct shipments have been made.

"The .shipping companion definitely said that if they were cut out the condition to face the coastal freight, they would not reduce the main port freights in any way," he continued.