SHIPMENT OF PRODUCE.

Wanganui Chronicle, Volume LXXVI, Issue 18206, 17 June 1921, Page 5

SHIPMENT OF PRODUCE.

FREEZING COMPANIES’ PROPOSAL. DEPUTATION TO ACTING-PREMIER (Per Press Association.) WELLINGTON. June 16. A deputation representing freezing, companies’ organisations waited on the Acting-Prime Minister in reference to proposals that have been made for obtain, ng relief from the situation with which producers are confronted in relation to the shipment of their produce.

Mr De Latour said that while freezing companies wpre entirely in sympathy with what th« Producers’ Committee was doing, they asked that the report from the committee should not be taken as having been considered by freezing companies. From the point of view of freezing companies, the suggestions made to the Government by the committee wer< perhaps more delai’ed, n ore elaborate, than was necessary. Tlie point that freezing companies had been anxious to see put in a prominent place—the representation of the Government on any bopAd created —had been left out. He thought it v. as a mistake. The matter eame hefo e the companies acutely when the last cantiacts expired. They found they were m a very helpless position. There was nobody that could approach or deal with the shipping companieg, which were now in a well organised state They had to accept a contract that placed producers in a bad position, bedcause high freights based on increased costs if they were to continue with the reduced value of produce, would practically deprive the 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 then be in practically the same position as when this contract was made. Unless in the meantime some organisation was set up, it would lie 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, also to charter. He did not think 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 bo 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 the chairman. This body, composed of Government nominees and producers’ representatives, should have some standing lo 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 producers to adopt those ships as their vehicles ?

Mr De Latour 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 very sad experience of attempting to control certain essentials of public supply in respect of wheat , better and other matters. They found that competition 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 De Latour 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 of the distribution of scrip or profits in shipping. ’The proposal appeared wholly unnecessary, and created a detail that was open to objection. They would like to see some board set up with authority, and as it showed its capacity its power should be increased. It was only fair to shipping companies that there should be somebody that could speak with authority. The Producers’ Committee, with members scattered all over the country, though it had,its usefulness, could not deal with the quesk tion fairly.

Mr. Ewan Campbell said that manyyears 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 Tyser line to come out here to bring down freights, to what the producers considered a reasonable basis. He suggested that they could not get a guarantee from freezing companies, who were now much more eomoined than ever previously. Sir Francis Bell--If you do not have power to coerce the guarantors to abide by their guarantee, the whole thing would burst in.

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 somebody that could take action if they were unable to contract. If the guarantee were, not from freezing companies, it would not be wdTth much.

Mr. De Latour 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 produce? * Mr. 'De Latour-—We prefer to do so—something that will be representative of the whole of the producers, rather than something which might be said to be a monopoly. Sir Francis Bell said he would very much prefer the alternative suggested by the second speaker, because it would relieve the Government of all interference, but he was impressed with what Mr. De .Latour said. “I am very much impressed, speaking for myself, with the desirability of having a statutory body outside the Government authorised and empowered to make provision for the 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 s> powerful body, having a powerful trade to offer. We are not able «o dictate our own. terms, of course, bu > are able to insist upon fair terms. 1’ am personally quite ready to bring before my colleagues the necessity for legislating for that purpose. It has one great advantage, from our point of view: it substitutes a body not the Government, for the Governme.nt had been called in 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 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 credit for 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 Government purchase. That was never done. He understood this was an effort to substitute for the Government persons concerned, to incorporate them, and give the united front and power of Parliament' behind them He was entirely in accord with that, and would bring the proposal before Cabinet. He had not yet brought the proposals of the Producers’ Cornu mittee before Cabinet because he had not flje money necessary to meet, the rather large liability the Government was asked to undertake. Tffe Prime Minister must also be here to deal with a matter of that kind. It was useless to f discuss it in his absence..