SHIPPING OF PRODUCE.

Star (Christchurch), Issue 16455, 17 June 1921, Page 5

SHIPPING OF PRODUCE.

PROPOSALS TO GOVERNMENT. [Fbr Pricks Association.l WELLINGTON, June 16 A deputation representing the freezT ng companies’ organisation waited on the Acting-Prime Minister with reference to proposals that have been made for obtaining relief from the situation with which the producers are confronted in relation to the shipment of their produce. Mr Del a U tour said that while the freezing companies were entirely in sympathy with what the Producers’ Committee was doing, they asked that the report from the committee should not b© taken as having been considered by tho freezing companies. From the point of view of the freezing companies the suggestions made to the Government by the committee were perhaps more detailed and more elaboiate than was necessary. The point that the freezing companies had been anxious to s€fe put in a prominent place—representation of the Government on any board created—had been left out. He thought that was a mistake. The matter came before the companies acutely when the last contracts expired. They found that they were in a very helpless position. There was no body that could approach or deal with the shipping companies, which were now in a well-organised state. The freezing companies had to accept a contract that placed the producers in a bad position because high freights based on increased costs, if they were to continue, with the reduced value of produce would practically deprive producers of the fruits of their industry. The year for which the contract was made would terminate very shortly, at the end of next season. They would bo then in practically the same position as when this contract was made, unless in tlie meantime some organisation was set up and it would be quite impossible to protect the producers. What he would suggest was that they should be content to take the first step to provide an organisation that would have power to contract, with the approval of the Government, and also to charter. He did not think that it would be necessary to enter into a policy of acquiring ships wholesale or building them. The world was full of unemployed shipping. They had reason to suppose that those ships could readily be placed in a condition suitable for the New Zealand trade at a flat rate per ton that would be advantageous to the Dominion as a whole They suggested that the Government should consider creating a board with full Government representation, one of the Government nominees being chairman. This body, composed of Government nominees and producers’ representatives, should have some standing to contract, and, if a reasonable contract was impossible, to take other steps.

Sir Francis Bell: Would that be of any use without power to prevent competition, without power to coerce the producers to adopt those ships as their vehicles?

Mr Delautour said it was hoped that the producers themselves would contribute by voluntary assessment or otherwise, through their respective organisations, and this would itself act as a force for coercion.

Sir Francis Bell said that the Government had had a very sad experience of attempting to control certain essentials of public supply, in respect of wheat, butter and other matters. They fkfrmd thajt c 6 repetition came in at once against Government purchase, with the result that the Government lost. With this vacant shipping of which they spoke, if a contract were made, unless it were coercive, someone was going to lose on that contract if other shipping came in in competition.

Mr Delautour said that personally he had no objection to coercion on that line. Of course it might make legislation more difficult. What he wished to avoid was any involved forecast or distribution of scrip or profits in shipping. The proposal appeared wholly unnecessary and created detail that was open to objection. They would like to see some board set up with authority, ftnd as it showed its capacity, its power should Jae increased. It was only fair to the shipping companies that there should be. some body that could speak with authority. The Producers Committee, with members scattered all over the country, though it had its usefulcould not deal with the question fairly.

Mr Ewan Campbell. said that many years ago a position similar to that existing at present arose, and a keen business man was sent Home from Napier with a guarantee for the shipment of 200,000 sheep. With that guarantee he was able.-to arrange with the Tyaer Line to come out here to bring down freights to*what the producers considered a reasonable figure. He suggested that they .could get a guarantee from the freezing companies, who were now much more combined than previously. Sir Francis Bell: If you do not have power to coerce the guarantors to abide by their guarantee, the whole thing would burst. Mr Campbell said it did not before. Sir Francis Bell said that if the whole of the freezing companies combined it would be a different matter. They really wanted some body .. than could take action if they- were unable to contract- If the guarantee were not from the freezing companies it would not be wortji much. Mr Delhtour said they would arrange a guarantee, but in deference to the wishes of the producers they had sunk their own independence. Sir Francis Bell: You do not handle the whole of the uroduoe? Mr Delatour: No. We prefer to do something that will be representative of the whole of the producers rather

than something which might be said to be a monopoly. Sir Francis Beil said he would very much preier the alternative suggested b.v the second speaker, because it would relieve the Government of all interference, but he was impressed with what Mr .Delatour had said. “ 1 am very much impressed, speaking: for myself.” he continued, “ with the desirability of having a statutory body outside the Government authorised and empowered to make provision for tne export, of our produce from New Zealand. with power to speak, as the Government speaks, on behalf of the producers. so that we should be a powerful body having a powerful trade to offer, not able to dictate our own terms, of course, but able to insist upon fair terms. lam personally quito rcadv to bring before mv colleagues tlie necessity for legislation for that purpose. It has one great advantage from our point of view, that it substitutes a bodv not the Government for the Government.” The Government had been called on to undertake all kinds of functions, which were really not administrative functions, and if they could constitute a chamber of commerce with power to contract and act, they would be returning to something like the true functions of the Government, legislating and administering. His experience of the attempts of the Government to provide for the community had been that everybody criticised the Government and nobody gave it credit for the benefit that was derived.

Mr Campbell : They never do. Sir Francis Bell said they did not want that, but the profit that was made at the time when the Government was undertaking supply should be credited against the time when dumping came in against the Government purchase. That was never done. He understood that this was an effort to substitute for the Government the persons concerned, to incorporate them and c-ive them a. united front and united power, with Fniliament behind them. He was entirely in accord with that, and would the proposal berore Cabinet. He had not vet brourrnt the nronosals of tho Producers’ Committee before Cabinet, because he had not the monev necessary to meet the rather large liability the Government was asked to undertake: also" the Prime Minister must, be here to deal with a matter of that kind. It was useless discussing it in his absence.