Bremerhaven
p. 14 · Read in the full issue
Disturbs N. G. Trade Representations Made to Federal Authorities
Canberra, July 14.
THE manner in which the German steamer Bremerhaven is cutting into the business of Australiau firms trading in the Mandated Terri tory of New Guinea is now receiving the attention of the Federal authorit ies. The Bremerhaven (N.D.L.) is now running regularly between Far Eastern ports and New Guinea.
It has been represented to the Prime Minister’s Department here that the Australian companies trading in New Guinea are contemplating the reduction of their costs —more particu larly in relation to a departure from the Australian wage standards so that they may meet the Bremerhaven competition.
The Australian companies state that they do not fear the Germans so far as Rabaul is concerned. The amount which the planters receive by consign ing through the Bremerhaven is sub stantially the same as they receive by selling to the big firms in Rabaul.
With copra at £12 per ton the com panies operating in Rabaul pay £8/15/per ton to the planters, taking ex change into consideration. The amount received by the planters from the Germans, on a Rabaul basis, is approximately £8/17/- per ton, but the companies emphasise that the follow ing substantial differences may be noted: (1) The companies pay the plan ters spot cash for the copra. The Bremerhaven does not pay until the copra has gone to Europe and ac count sales have come back. (2) The companies take delivery of the copra, store it in their sheds and place it under insurance from that moment, without any charge to the planters. In the case of the Bremerhaven, the copra has to be stored by the planters at their own cost, and then delivered by them to the ship, and there is no free in surance.
It is in regard to the outports that difficulties arise. The companies have to charge the copra-producers the cost of freight from the outports to Rabaul. The Bremerhaven goes to the outports and picks up the copra there without extra charge. Those of the out port planters who can afford to wait for their money and deal with the Bremerhaven, benefit to the extent of the freight between the outports and Rabaul.
It has also been represented to the Commonwealth Government that the Bremerhaven is the centre of a vigor ous effort which is being made to cap ture the New Guinea market for Ger man goods. German commercial trav ellers have been busy in the Territory: and the Bremerhaven, manned by very cheap labour, is bringing the cheap goods at low freights, to the disad vantage of Australian manufacturing industries. The companies ask that the Germans be placed on the same basis as the Australian enterprises. If the latter are to retain their copra con nection, one of two things must occur, (a) The Australian companies must cut their wage rates and even contemplate the employment of cheap foreign labour, so that they may be able to reduce costs and themselves pay freight between the outports and Rabaul, or (b) The cheap labour advantages enjoyed by the Germans must be offset in some way, preferably by restricting oversea ships to the main Customs ports only, in the way that has been adopted recently by the British administration in the Solomon Islands.
It is pointed out by the Common wealth officials that the coastwise trad ing provisions of the Australian Navi gation Act were applied to New Guinea and Papua some ten years ago.
They did not operate at all satisfac torily and the position wag inquired into by a Royal Commission in 1925.
As a result the operation of the Act was removed from those territories.
That seemed to accord with the gen eral wish. The officials say that to place any restriction now upon the opera tions of the Bremerhaven would en tail the re-apnlication of the coastwise trading provisions of the Navigation Act and that probably, would arouse strong protests.
It is recognised, however, that Aus tralian trading interests and wage standards in the Territory are entitled to protection: and the whole position in relation to British competition is under consideration.
Union Complaint to Mr. Scullin Complaints that Australian crews have suffered by the growth of foreign shipping in the Mandated Territory are contained in a letter forwarded by the secretary of the Marine Stewards’
Union (Mr. A. H. Moate) to the Prime Minister (Mr. Scullin), (says The Syd ney Morning Herald, of July 11).
Mr. Moate asked, in his letter, that the Federal Government should pro claim the Navigation Act in the Man dated Territory, that the duty of 8/a ton imposed on Australian trade in the islands should be lifted and applied to foreign shipping, making the
duty payable by foreign companies not less than 16/- a ton. In this way, he points out, a fillip would be given to Australian shipping, and more employ ment would be created for Australian crews.
Allegations made by Mr. Moate are that the Norwegian and Chinese lines pay lower wages and carry smaller crews than Australian vessels, and that a Japanese line is considering entering the trade.
Mr. Scullin has replied that the question of proclaiming the Navigation Act in the Mandated Territory has been referred to the Administrator of the Territory and of Papua for a report.