asked the Minister for Transport and Power if he is aware that the companies controlling cross-Channel freight have recently increased freight charges by approximately seven per cent.; that world freight charges have recently fallen; and that Irish ships are at present idle; and, if so, if he will consider establishing an Irish-controlled shipping organisation.
Ceisteanna—Questions. Oral Answers. - Irish-Controlled Shipping Organisation.
44.
I am aware that the principal cross-channel shipping companies, following increases in their costs of operation due to higher wages and other costs, have increased their port-to-port charges by approximately 7½ per cent. from 16th July. I am also aware that because of the recent further sharp fall in world tramp and time charter freight rates, Irish Shipping Ltd. have found it necessary to lay up one of their ships. The type of regular liner service required for the traffic moving between this country and Great Britain is not, however, affected by the factors which influence the level of world freight rates nor is the type of ocean going dry cargo ship now laid up suitable for use in the cross-channel trade.
As regards the latter part of the question I would refer the Deputy to my supplementary reply to a question on 26th October, 1960, on the question of increases in cross-channel freight rates at that time.
Arising out of the Minister's reply, is it a fact that Transatlantic freight rates are cheaper in proportion than cross-Channel shipping rates?
Many efforts have been made by various enquirers to make a comparison between them but it is very difficult to make any relevant comparison as the types of trade are so different. One of the factors so far as the cross-Channel trade is concerned is that nearly half the costs are incurred at the ports at either end which makes a comparison extremely difficult to calculate.
Is it a fact that the cost of freight between New Zealand and Great Britain is as cheap as it is between Ireland and Great Britain? In view of the fact that Irish Shipping Ltd. have been engaged in Transatlantic shipping would the Minister reassess the position so that Irish Shipping Ltd. can be used to carry our goods across the channel?
It would be better if that matter were raised in the debate on the Estimate for the Department as it is far too lengthy a matter to deal with now. There have been comparisons made. One example taken was the charges incurred from a port in this country to a port on the Continent as against the charge between London and Copenhagen and the difference in the cost was negligible. To make comparisons of costs between long distance services by ships designed for those services and cross-channel costs is very difficult. We have the report on the cross-Channel services made in 1957 and the Government have been using the evidence in that report in any way it can to improve the situation.
Does the Minister not agree that in actual fact the cross-Channel freight rates have increased by 62½ per cent. in the last ten years?
Hear, hear!
Would the Minister not further agree that the rise in the cross-Channel freight rates is due to the fact that there is no competition?
Hear, hear!
Some measure of competition has been established.