SHIPPING COMPETITION.

Taranaki Daily News, 21 October 1933, Page 6

SHIPPING COMPETITION.

The discussions between the Ministry and the Australian Government in regard to unfair shipping competition have shown how difficult it is to deal' with this problem. From one point of view there is much to be said in favour of as much competition as is possible among shipping services. Competition stimulates improvement in services and keeps costs as low as possible, both of which are matters with which countries that depend a good deal upon sea-borne traffic are much concerned. But when in addition to ordinary trade competition the Dominion shipping lines are handicapped by foreign legislation and by foreign State subsidies the position is entirely different. The United States has legislated to prevent foreign-owned ships trading between American ports except upon conditions which heavily handicap the foreigner in any competition with American vessels. In addition, as recent inquiries have shown, heavy subsidies have been paid by the United States Government to assist in the expansion of American shipping services. With the aid of those subsidies the American shipowners can offer facilities for travel that are not justifiable under ordinary trading conditions. Such'- vessels are coming to New Zealand from the United States and trading between New Zealand and Australian ports to the detriment of Dominion-owned shipping that is not allowed to trade between American ports. Appeals have been made for legislative action in both Dominions, but apparently the way is not so easy as it would appear. The question of British shipping generally is involved, and Great Britain cannot afford to reach misunderstandings with the United States which might affect the vastly greater Atlantic trade. Nevertheless the injustice to Dominion shipping is undoubted, and it is satisfactory to note that New Zealand and Australia are together seeking a way of removing it.