TRADE OF THE DOMINION

Poverty Bay Herald, Volume LII, Issue 17154, 2 October 1926, Page 8

TRADE OF THE DOMINION

The adverse trade balance of New Zealand, and the potentialities of centralised shipping as one of the mediums of curbing the use of over many small and expensively operated ports, were subjects comprehensively dealt with in an address at Palmerston North by Colonel G. Mitchell, of Wellington (states the Manawatu Standard). Colonel .Mitchell dealt more particularly with shipping and freights and their bearing on the general economics of the Dominion. The meeting addressed by him was at the committee room of the Manawntu A. and P. Association, the president of which body, .Mr. Janies Knight, of Fcilding. presided. After brieilv introducing his subject. Colonel .Mitchell said: “Wo should examine the facts impartially, and, if necessary, take action to remedy a very great- wrong in respect to the presentsystem of shipping of produce from the Dominion. This queseion is very largely bound up with the prosperity or otherwise of the Dominion, and that at a time when we are ‘ up against it.’ He proceeded to state that, owing to more intensive overseas competition, ive must expect leaner years, and, continuing, dealt- with the adverse trade balance of New Zealand during the past six yews. During the years 1914-1919, he stated, the value of our exports, was £205,000,000 and of imports £145.000,000. After paying interest cn money which went out of the country, there was u credit balance of £41,000,000 for those six years. The consequence was a- boom. attended by extravagance. IMPORTS AND EXPORTS. , The 1920-1925 period told a different tale. During that period the value of our exports was £287,000,000, but imports reached £283,000,000. Interest cn money which went out of New Zealand made a total expenditure for the period stated of £311,000.000. leaving a debit balance of £24.000.000. We bad not felt the “pinch” because we had borrowed £28.000.000 during that, period when we lost £24,000,000, but that sort of thing could not go on indefinitely. Colonel Mitchell alluded to the colossal expenditure on motor-cars and petrol--about £5.000.000 per annum for the past three years—stating that, while he did hot deprecate the use of motors, lie wished to point, out the load of extravagance which the country was bearing, and what- a- great benefit- would have resulted bad half of that money been spent on the land—in manures, for instance. England was buying more from the countries about her than from the Dominions, and only in wool was the outlook at present bright. He pointed' out to what a relatively .small degree we patronised the Old Country, which bought, hv far the greater proportion of cur produce. Colonel Mitchell then proceeded to deal with the manner in which the working of a- great many small and inconvenient ports increased the freight charges on produce sent overseas. ITe advocated that, failing a policy of centralisation. by which all exports would be shipped 5 at main ports, those availing

themselves of the “ luxury ” of small local ports should bear the extra- cost of working such. At present, he made it- clear, the largest- and best-equipped ports had to help bear the extravagant cost of operating the smaller shipping centres, which was most unfair. On an average the cost- of keeping a liner in port- was £3CO a day, lie stated, end the time occupied in 'some small harbors, where vessels bad to lie lightered, was very considerable, lie quoted ono ease where a- ship was at- a porr, for fourteen days, during ten of which she had to stand out to sea. on account had weather. We had, in fact, 22 ports in Now Zealand at which Horne steamers called, and not- a few of these poris had insufficient trade to nicertheir maintenance, with the result that they were obliged to strike a rate. Ho instanced Timaru, Napier, Oamaru, Rater, Wairoa, Nelson, Whakatnne,

POUR TRAGEDIES. A man struck a match to see if the petrol tank was empty. It wasn’t. Another touched an electric tram wire to see if it was alive. It was. A man jumped out of j boat to see if he could swim. He couldn’t. A business man cut out his advertising to save money. He didn’t.—Empeco Paper New's.

Hokitika, Opunake, and Tolaga Bay, whose rate collections totalled £56,000 per .annum. Farmers should not he taxed for non-self-supporting ports, he declared, stating that, even if the pro--duce which ordinarily went through such were shipped to the main ports by coastal steamers, there would still he a saving. WHAT COULD BE SAVED. i In the case of one port £90,000 a year could be saved if its Home trade -> were diverted to Auckland or Wellington, after allowing, £41,000 for tho transport costs by coastal steamer from it to the main port of exportable produce. The cost of handling goods at Wellington for export was 8s 4d per ton, as compared with £2 5s to £4 10s 6d per ton at some of the lessor ports with poor facilities, and, as bo had said, it would’ pay better to have , export cargoes diverted from these to j the main, shipping centres by coastal) steamers and railways, while money sc> J spent would remain in tho country. j Desirable as centralisation in shipping was from the standpoint stated, there , was yet another feature in which the supporting of main, well-equipped ports was being penalised. Xo one, said Colonel Mitchell, desired to prevent ships calling at small ports if those responsible for them were willing to pay the extra charges for

IMPERIAL PREFERENCE AND CENTRALISED SHIPPING

what he termed a- “ luxury.” Actually, the people back of a small port did not. hear all. the cost- of the waste of time and money involved in liners calling there, for tiie shipping companies now operated on a- fiat rate freight charge, paid by all, and designed to cover the expenses of working the minor places of call. Those who had paid for the splendid facilities at- Wellington and Auckland, therefore, were no better off in this respect. SMALL PORTS A LUXURY. “Those desiring the luxury of small ports should be prepar'd to pay for it,” lie declared. “If the ' call at, the farm’ policy was cut- out. the, overseas freight charges from New Zealand would be cut- down by at least a quarter.” lie proceeded to demonstrate how Palmerston North, as a supporter of Wellington port, bad to suffer under the fiat, rate freight system. The cost per ton from Palmerston North to the steamer at Wellington, he stated, was: Railage £2 Is 3d, wharfage 2s 4d —total £2 3s 7d. The, cost per ton from lTnwcra to the steamer at Wellington was only 24s 3d, being railage to the nearest port—nearly £1 a- ton less than tho charge from Palmerston North to Wellington, because the shipping companies, under the flat rate system, themselves paid tho coastal steamer freight operating from ITa-wera-’s nearest- port to Wellington in the instance stated.