high freight rates
p. 34 · Read in the full issue
The Solomons object to high freight rates
From a Honiara correspondent Australia can count herself lucky that she does such good business with the Solomon Islands. Because of the high freight rates between Australia and the Solomons—it costs more to freight goods from Australia than it does from Europe—many Solomons importers buy European whenever possible. The reason why Australia remains the Solomon’s main supplier is that she is handy, and on a regular shipping route.
Solomons importers tend to blame the high freight rates on Australian unions who will not allow ships trading with the Islands to be manned wholly by Islands crews.
The high freight rates are not the only grumble among Solomons im porters. The quality of Australian meat has come in for some strong criticism. Importers warn that when the Solomons start buying NZ meat (which will arrive on Holm Line vessels), nobody will buy fresh meat from Australia unless Aus tralian exporters buck up and pro vide better quality meat.
However, most importers are quick to point out that they are quite satisfied with the quality of Australian goods other than meat.
Although Australia is the Solo
mons’ main supplier, she provides only a small percentage of motor vehicles. Reason: Japanese, Eng lish and Italian vehicles are cheaper and smaller and they cost less to import.
Other countries which do trade with the Solomons are Japan, Singa pore and the UK. Here is a break down of the current trading situa tion between those countries and the Solomons:
Captured by Japan
Japan comes into the import pic ture as far as motor vehicles and motor cycles are concerned. About half the market has been captured by Japan. Other items from Japan don’t do as well in the Solomons.
The reason is that Japanese firms require such large orders that im porters in the Solomons cannot pur chase the quantities required.
Singapore supplies most—if not all—the piece goods, ready-made clothing, etc. Until about a year ago a good deal of this stuff (manu factured in Japan) was being bought by the Chinese from Hong Kong.
Service from Singapore is better than from any other source out side Australia.
The UK loses terrific opportuni ties in the Solomons because of the long delays in suppying orders. If it were not for this it is very pro bable that there would be a further swing away from Australia.
Exports
Copra remains the main export, but timber is now being sent out in increasing quantities. Logging companies are experiencing some difficulty in establishing Solomon Island timber in overseas markets because some of the species are new to overseas buyers and the
quality (for work such as joinery) is not very good.
Hopes are held here that the Solomons will soon be more than self-supporting with rice, and that within the next year or two there will be a surplus available for ex port, possibly to the New Hebrides, but here again only time will show whether these hopes are justified.
Solomons businessmen are watch ing the rice scheme closely. The tonnage handled by the Ports Authority dropped last year, and if the rice scheme is successful there will be a further drop in the ton nage handled by the Authority.
Shell is still being exported but it fetches such poor prices that it hardly pays the natives to collect it. The cocoa scheme can only be regarded as a failure. The gov ernment will not accept this, and blames the Solomon Islanders for laziness. But many businessmen feel the government is culpable.