asked the Minister for Transport and Power if he is satisfied that the shipping facilities for export of all forms of goods from this country are price competitive to ensure equitable conditions with other countries in the Common Market.
Ceisteanna—Questions. Oral Answers. - Export Shipping Facilities.
39.
I am not clear as to what precisely the Deputy has in mind. Freight rates are a matter for settlement between exporters and importers on the one hand and shipping companies on the other; they are not subject to official control nor in the nature of the trade is such control feasible. There are no restrictions on the employment of ships of any nationality between here and other countries.
Vessels engaged in bulk trade are normally chartered for voyages or periods at competitive rates which vary with demand; at present these rates are very depressed.
Freight rates in the regular liner services are generally based on classification systems but I understand that most of the regular traffics which pass in significant volume to and from Great Britain and the Continent are carried at exceptional rates negotiated directly between customers and shipping companies.
Cross-Channel freight rates have, from time to time, been compared unfavourably with rates for similar goods on other routes. Exact comparisons of this kind are very difficult to make, however, because circumstances may differ very much. It would be pointless, for instance, to compare the rate per ton for meat sent by ship loads from South America to Britain with rates charged for container loads on the cross-Channel services.
Following the increase in cross-Channel freight rates last July the Irish and British Traffic Association, which represents the shipping companies, gave me an undertaking to give special consideration to particular traffics where it could be shown that the increase was detrimental to the interests of the trader. I am informed that a number of firms have secured reduced rates as a result of this undertaking.
The Tribunal of Inquiry into cross-Channel freight rates reported in 1959 that the evidence was insufficient to support a conclusion that the general level of cross-Channel rates was high by comparison with the level of rates on other routes. The Tribunal also reported that their examination did not suggest that the cross-Channel shipping companies were making excessive profits. I have no reason to believe that there has been any significant change in that situation since then. It is of interest in this connection that the Committee of Inquiry into the shipping services between Britain and the Six Counties set up by the British Minister of Transport has now reported that the freight services, which had been the subject of much public criticism, were in fact satisfactory and that the general level of rates was reasonable.