Papua-N. Guinea’S Economic Headaches

No Cement :: Asian Ships ‘Wipe’ Moresby :: ‘Control’ of Motor Importations :: End of Socialists’ Coastal Shipping Set-Up

From R. W. Robson.

Pt. Moresby, May 30.

BECAUSE of failures in supply and transport, Papua-New Guinea now is faced wth confusion and expense which, at least, will equal some of the worst records of the last ten years.

The Territory has a huge public con struction programme, and, for work on roads, ports, airfields, houses, planned towns, water and hydo-electric services, it is committted to an expenditure that is literally staggering. Under an arrange ment with the Territories Department, the Australian Department of Works and Housing has in Papua-New Guinea now an establishment that embraces a thous and Europeans, many thousands of natives, and enormous equipment.

The basis of a large proportion of W. and H. operations is cement. But Austra lia, in the past year, has become very short of cement, and now has none for Papua-New Guinea. Both Administration and private importers have been told that they will get only a trickle of Australian cement, and other building materials, for a long time.

Arrangements accordingly were made to bring in foreign cement, especially from Japan. This is good cement, well packed in waterproof containers. Some other building materials were available from the same sources. The E. and A. Line agreed that their ships, running down from the East, should call at Port Moresby.

This pleased Territories importers. The intolerable conditions created in Austra lian ports by watersiders and other Red Unions have caused European shipowners to curtail their services. As a result, it has become difficult for P-NG importers to bring goods out from Europe for trans shipment in Australia to Papua-New Guinea. When the E. and A. Line decided to make a Territories call, the P-NG merchants decided they could get their goods from Europe by having them ship ped to Singapore or Hongkong, for trans shipment there by E. and A. to Papua- New Guinea.

But now, owing to the unsatisfactory condition of the Port Moresby wharves, and the limitations of the port generally, the E. and A. Line has announced the cancellation of its scheduled calls there.

Thus, at one blow, the hopes of many kinds of importers, and especially the pub lic works people, have been shattered.

Very strong efforts are being made to in duce the E. and A. Line to resume the Territories call; but, at the moment, the prospect is depressing.

Control Over Motor Vehicles

MEANWHILE, certain “controls” as operated by uncoordinated and blundering officialdom, are causing exasperation, anger and ridicule. There is, for example, the matter of dollar ex change and motor-vehicle importations.

P-NG wants a lot of vehicles—and especially those of American make, which are most suitable for Territories condi tions. After much argument, Canberra decided to make dollars available, pro vided that as many parts of the vehicles as possible were made in Australia and that the American (dollar-bought) parts and Australian parts were assembled in Australia. It took the P-NG importers

weeks of time and work, and endless headaches, to get this new system all lined up. The system was most incon venient, and it added considerably to the delivered cost of motor-vehicles.

Now, it is noticed that certain makes of American cars are being imported in toto—that is, they are being delivered complete, and without any Australian ad mixture. They come from the manufac turers who have no Australian factories.

So far as P-NG is concerned, the shrewd buyers are inclined to nominate the products of the American manufac turers who have no Australian workshops.

A good example of the old saying that every “control” imposed on trade and

finance breeds, in addition to exaspera tion and confusion, more and more “con trols.”

Shipping Department In

Suspension

WHEN the Ward-Murray Socialist re gime was fastened on P-NG after the war, the first industry taken over was shipping. Apart from the large and growing air services—which take care of passengers, mails and urgent goods— P-NG moves and has its commercial being on the water. The coastal services are of vital importance.

Ward-Murray Socialism wiped out pri vate enterprise in shipping, created a

Government Shipping Department, and proceeded to introduce a large fleet of little ships, to carry goods and passengers out to the plantations and little ports, and bring back produce. The story of its failure need not be told again. The Ship ping Department followed the almost in variable pattern of all such Socialistic enterprises.

When Australia ejected the Socialist Government, it was soon decided to abol ish the Socialist shipping organisation in P-NG, and private enterprise was invited to take it over.

Private enterprise, in the shape of the big trading firms, has not rushed the proposition. The “little ships” are not in an attractive condition, and port facili ties are not as good as they could be, seeing that six years have passed since war left the area.

The Government ran the coastal ship ping as one organisation. The private com panies cannot see it that way. Conditions vary widely between the south coast of New Guinea (Papua) and the north and east coasts, and the coasts of New Britain, New Ireland and Bougainville.

So far as they have gone, negotiations indicate that Burns Philp & Co., Ltd., and Steamship Trading Co., Ltd., will jointly form a company to take over and run the coastal shipping in Papua, or the south coast thereof; while another combination, or combinations, of the big trading concerns in New Guinea will take over the rest of the establishment. The ships in New Guinea are in poorer shape than those in Papua.

Progress in discussions has been pain fully slow. The chief obstacle has been the valuation of the ships to be taken over. Mr. Halvorsen, head of the well known Sydney firm of shipbuilders, was making his third visit —and valuation — at the end of May; while the big firms

re hourly awaiting some decision from •. Halligan.

Some people were accusing Mr. Halli a of prevarication and delay; but Mr. lligan has had a change of Ministers, d the induction of a new Minister to :e care of.

Naturally, the new Minister will want give the final word on an important .nsaction like the sale to private en prise of the Socialist Administration’s istal fleet of little ships.