What Australian Government

Is Doing To Islands Trade

Dislocation of Shipping, Trading and Planting BP Chairman Outspoken

MANY times in past decades, since it was established 65 years ago, Burns, Philp & Co., Ltd., have been attacked by Leftist politicians or disgruntled competitors; but the Big Firm always followed the policy of not answering back. It took pride in giving a fair deal to its public and its staff, and let its trading record speak for itself.

But times are changing. There is no longer fair dealing as between traders and Governments —especially Governments run by Leftist Trade Unions. It is time for the trader, “getting it in the neck” from all directions, to speak out.

At the annual general meeting of Burns, Philp & Co., Ltd., in Sydney, on May 28, the chairman, Mr. James Burns, spoke out as follows:

WE have in the last two years been trying to adapt ourselves to the many changed conditions now ruling.

Since 1940. we have lost six motor ships, but have only contracted to build one new one. This vessel will probably not be completed until the end of 1948.

During the year we have extended our interests in country stores. In this class of business we find less worries and troubles than in shipping, in connection with which we have to deal with so many Unions.

It might interest shareholders to know that, with all other companies, we are experiencing delays in ports at which our vessels call, and I am sorry to say we are only handling in Australia per hour per gang per hatch one-third the same type cargo we did in 1939.

Only this month we closed the account of a vessel which in pre-war days was on the Sydney/Eastern run, and took a little over 60 days, being full of cargo each

way, calling at the same number of ports, but extending to Penang instead of Java.

Owing to delay in loading and discharg ing in various ports, this ship was 153 days from the time she went on the load ing berth to the time she finished dis charging on her return—truly a reminder of the old sailing ship days!

This sort of thing is a great handicap to a country with a large interstate and oversea trade. Freights naturally rise to pay for slow handling and delays, and this increases cost of living and decreases the nett return to the primary producer for his goods, as a higher proportion of the proceeds of his produce goes in the increased freight. As most exports from Australia go forward by non-Australian companies, high oversea freights are a direct loss to Australia.

I have heard it often said that only in creased productivity can raise wages with out raising prices. But it is equally cer tain that only an acceleration in the handling of c&rgo will decrease freights

and passage money. In other words, most shipping companies want twice the freight and passage money as in pre-war days to cover the extra time spent on voyages and the extra costs for higher wages, victualling expenses, fuel and everything else to do with the shipping industry.

APART from all these serious delays to ships, and increased costs in other directions, we cannot plan ahead for future tonnage until we know the Gov ernment policy as regards nationalising,

or partially nationalising, Australian coastal and islands shipping.

In pre-war days we received a subsidy, and in some cases charged rate of freight that would nowadays not always pay for the loading and discharging expenses.

We are still paying 50 per cent, war bonus to our crews; and. if we have to face a 40-hours week at sea, it will be most important to see that we have some hope of leimbursing ourselves for costs, even if we do not make profits.

A small Islands vessel like the “Montoro”, with diesel engines, is Jikely to run into nearlv half a million: and this is a great deal of money to get back, after all expenses are paid, in the Islands Trade.

Apart from shipping, we have a large building programme ahead. We do not expect to be allowed to do very much before the housing problem is satisfactorily settled, but we have half a dozen properties we want to build on in Australia.

In the Islands, practically all our buildings and wharves have been damaged or totally destroyed. We cannot get building materials or labour, and consequentlv most of our staff in Islands

centres are living in native-built houses, or makeshift quarters constructed from wrecked old buildings. Probably it will cost us double what we will receive in war damage insurance to get all our Branches and Islands properties going again in pre-war style, IVIANY of the plantations we control, I?JL or are managing, have no native labour and are gradually going back to virgin bush. We have latelv bought and fitted up a vessel, at a high cost, for the transportation of labour, to en deavour to get sufficient to do something in the way of clearing roads, building bridges, etc., and later on we may try to clear some plantations.

In the meantime, thousands of tons of coconuts on our properties alone are rot ting or being eaten by wild pigs—while most of the world seems to be starving or short of fats.

We have a good and able staff on the spot, and they have been there for nearly two years, but you cannot “make bricks without straw”, and you cannot cope with the rapid encroachment of the jungle without labour. It takes six months feeding up with tinned beef, rice,

biscuits, etc., to make the ordinary labour we now get able to do a day’s work; so that, allowing for time taken in transpor tation from and to their villages, a planter is lucky to get six months’ efficient work on the 12 months’ agreement.