MATSON LINE

Timaru Herald, Volume CXXXIX, Issue 20073, 2 April 1935, Page 6

MATSON LINE

COMPETITION WITH N.Z. SHIPS ACTION CONTEMPLATED By Telegraph—Press Association WELLINGTON, April 1. In the House of Representatives today Mr P. Fraser (Lab., Wellington Central) moved for leave to introduce the Shipping and Seamen Amendment Bill. In support he referred to the competition of foreign subsidised shipping, and submitted that the matter could be dealt with by New Zealand and Australia without embarrassment to the British Government. Many people were concerned as to the future of New Zealand as a maritime country, and members were unable to ascertain the actual position regarding co-operation between New Zealand and Australia. They asked that something should be done immediately, and he did not think that Mr Walter Runciman and the Board of Trade in Britain would interfere in any action taken by New Zealand. He contended that it would be possible to introduce an amendment to the Shipping and Seamen Act or to the Customs Act making it impossible for shipping to carry passengers between New Zealand and Fiji and New Zealand and Australia unless they paid the current rate of wages for the time being ruling in New Zealand. Every member of the House, he was sure, was agreed that it would be fatal in a maritime nation like New Zealand to have its merchant shipping destroyed. The effect on seamen in New Zealand was so serious that the Government should institute an inquiry into the competition of subsidised shipping with New Zealand shipping and also the use of New Zealand ships in the Nauru Island phosphate trade. A Vital Matter Mr A. J. Lee (Lab., Grey Lynn) supporting the motion, said no country in the world depended to a larger extent on its mercantile marine than New Zealand. He thought it was vital that something should be done. If the United States could declare it illegal for a New Zealand ship to carry goods or passengers between the United States and Honolulu, New Zealand could prevent United States ships carrying passengers and goods between New Zealand and Australia. Mr W. A. Veitch (Ind., Wanganui) gave his whole-hearted support to the Bill, and said it was necessary that some action should be taken to meet the undoubtedly unfair American competition in New Zealand waters. It was obvious that if industrial conditions in New Zealand ships were to be maintained, protection against foreign shipping must be given. Mr F. Jones (Lab., Dunedin South) quoted the subsidies paid to Matson liners trading to New Zealand. The American shipping competition had been going on for three years, and why nothing had been done he could not conceive. It was time that some sort of fight was put up as the competition as very unfair. Only One End Mr R. A. Wright (Ind., Wellington Suburbs) said he supposed the position was that the British Government did not want to disturb the friendly relations that existed with the United States Government. The competition had gone too far. If the competition continued to receive the Government assistance it had received in the past, it could have only one end, and that was that the New Zealand shipping industry would be extinguished. Mr R. Semple (Lab., Wellington East) with other members, hoped that the New Zealand Government representatives when at Home would take the matter up with the British Government.

The Hon. J. G. Cobbe said it was incorrect to say that the Government had done nothing in connection with the matter. He had done everything possible short of introducing legislation. and that would give rise to very complicated questions. The matter went further than most members seemed to think. It was an international matter, and when the representatives of the New Zealand Government went Home they were fully aware of the seriousness of the business and he was sure that they would bring it under the attention of the British Government and it was hoped that something would be done. Mr J. Hargest (C.. Invercargill) said that if an American shipping line secured possession of the New ZealandAustralian trade it would not bother about the South Island at all, and would take only the cream of the trade. He agreed that something must be done to restrict the activities of the American shipping company. The need for training young New Zealanders for the sea and also the necessity for conveying New Zealand troops oversea if the need should arise had also to be considered. Mr M. J. Savage (Leader of the Opposition) said he did not remember any proposal that had met with such universal approval as the present one, and if there were any difficulties they were not in the House. It was obvious that they could not continue to go on as they were going, and they might as well face up to it now. Living standards were at stake, and that was a most important matter. He was sure that America would see the justice of the position and he hoped that the Prime Minister would lose no time in taking up the matter when he reached Home. Mr E. F. Healy (C., Wairau) said shipping competition was a big matter at the Ottawa Conference, and he suggested that the New Zealand delegates should tell the House what was done there. It was a far-reaching matter and was not only a question of New Zealand trade with Australia but Britain’s trade with other parts of the world. Negotiations in Progress Mr Coates said the matter had been under very close negotiation between Australia, the United Kingdom and the United States Governments. -The question of a subsidy was a matter that gave much room for thought. Negotiations were at the moment being carried out between New Zealand. Australian and the United States Government to endeavour to arrive at some arrangement by which ships would not be forced out of the trade. The Prime Minister had said he would take the matter up with the Imperial Government, and he believed that the Imperial Government fully understood the position. The question was how to reach an amicable agreement among all the parties. He agreed that it was a matter of great importance. The Bill was introduced and read a first time.