N.Z SEA TRADE.

Star (Christchurch), Volume LXIV, Issue 938, 7 December 1933, Page 1

N.Z SEA TRADE.

UNFAIR COMPETITION ON BRITISH ROUTE. Foreign Ships’ Inroads. HON A. SHAW S ATTACK ON UNITED STATES. United Press Assn.—By Electric Telegraph—Copyright. (Received December 7, 8.45 a.m.) LOXDOX, December 6. At the Peninsular and Orient Steam Navigation Company’s meeting the Hon Alexander Shaw presided. He said: “We are still confronted with uneconomic competition from subsidised foreign lines.” He cited as a concrete illustration the sea-carrying trade between Australia and New Zealand, including Fiji. This was a purely British trade, created and built up by British shipping, but one of the great subsidising Powers, not content with lavishing millions upon ships for its own trade, was now on this route operating highly-subsidised vessels in what was a purely British trade, with the result that British ships were faced with uneconomic competition, which made lamentable reading. “ Loss follows loss, apparently unendingly.” said Mr Shaw. “ These ships are the property of a company controlled and managed most admirably in New Zealand, but the Peninsular has a large investment in this concern. You will not be surprised that we have received no dividend from this company. It is difficult to resist the conclusion that British shipping may gradually be driven out of that purely British trade, simply because its slender resources cannot compete against the unbounded wealth of foreign taxpayers. I venture again to draw attention to the fact that this uneconomic competition is by ships of a Power which, while sending its own subsidised vessels into a purely British trade between British Dominions, will not allow British ships to carry a single passenger or ton of cargo between her own ports and her own overseas possessions on the route in question, and thus already 'has deprived a British companj* of a formerly profitable trade.” Preposterous Law. Mr Shaw referred to “ the preposterous situation ” caused by the WhiteJones legislation of the United States, which conferred upon any American line the power to force its way into any shipping conference in any part of the w orld. “ The Peninsular Company has had recent experience of this Act,” said Mr Shaw, “ and in order to save from extinction the trade of three subsidiaries which run voyages between Australia and elsewhere and the United btates, had to admit a certain American line into a conference which, on its merits alone, it was in nowise entitled to enter.” If Britain s voice in the councils of i hurope was of less account than in pre-wgr times, Mr Shaw said that he unhesitatingly linked it with the fact that the shrewd eyes of foreign statesmen 4 see our commanding position in the oceans of the world gradually fadmg away.’ He did not favour a general policy of the reservation of all Empire trade for British ships only, but he did not believe that subsidies would provide a permanent basis for tJ ?S, maintenance of British sea although they might be administered to save life. He would not shut out any country which ran its ships on fair economic lines and treated Britain and her shipping fairly. Remedy at Hand. “ Where, in any particular area of the Empire, an attack is launched against us, which is uneconomic and potentially dangerous to inter-imperial communications, I suggest that a remedy is at hand,” said Mr Shaw. “ The situation might be referred to some expert authority, such as the Imperial Shipping Committee, which was representative of the whole Empire. Following its report, it °ught to be within the power of the Governments of the parts of the Empire concerned to provide bv Orders-in-Council that the trade between them shall not be carried in the vessels of a particular Power from which the danger proceeds. A remedy on these lines could be applied without undue difficulty. It is not aggressive, but is purely defensive and mild. Indeed, compared with the shipping laws of a number of foreign countries the British Dominion Governments might go a step further and announce that they will consider whethe.r their ports can remain open for external trade on equal terms to the vessels of the countries, which treat British shipping unfairly.” The Imperial Shipping Committee was set up in 1920, (1; to inquire into complaints from persons and bodies interested with regard to ocean freights, facilities and conditions in the interimperial trade, on questions of a similar nature referred to them by any of the nominating authorities, and to report their conclusions to the Govern- i ments concerned. (2) To survey the facilities for maritime transport on i such routes as appear to them to be j necessary for trade within the Empire and to make recommendations to the j proper authorities for the c *-or j cn i improvement of such facilities ' h regard to type, size and spccu .. \ ?>hlps t depth of water in docks and j channels. construction of harbour 1 works and similar matters. This committee was set up as a result of the j Imperial Conference.