23. Port and harbour dues are re- 
oresented to us as being exceptionally 
heavy in Australian ports, and it is 
apparent that in many cases the sums 
levied are in excess of the amounts 
necessary to provide the services, the 
valance being used as Commonwealth 
or State revenue. In our judgment 
such charges should be calculated to 
vield only sufficient amounts to cover 
working costs, including interest and 
sinking fund, and to provide out of 
‘ncome reasonable reserves for depre- 
ciation and other continpencies, and 
for necessary improvements, including 
‘he provision from time to time of all 
modern facilities for loading and un- 
loading, such as cranes, conveyors and 
‘ravellers, unless the capital cost in- 
rolved is of material amount. 
24. We think that the Government 
should not aim at deriving general 
revenue from such sources. New 
South Wales has already passed legis- 
lation to prevent this. It is true that, 
speaking generally, the shipowner is 
able to pass on such charges in 
freight, and that they therefore fall 
itimately upon the industries using 
shipping facilities, but this does not 
justify a charge which is in effect a 
concealed tax not equitably spread 
according to taxable capacity over the 
saxpaying public. 
25. The coastal clauses of the 
Navigation Acts apply to all ships 
registered in Australia, and to all 
ships, whether registered there or not, 
which are engaged in the coastal trade 
»f Australia. They impose certain re- 
juirements as to living space for the 
2rew, and prescribe that the wages 
fixed by arbitration in Australia shall 
Yo paid to the crews. It is admitted 
that the cost of the structural re- 
juirements under the Navigation Acts 
adds considerably to the cost of the 
vessel, and that the effect of the con- 
ditions imposed by these Acts makes 
it difficult for Australian ships to com- 
pete with other ships in the overseas 
trade, and that it is commercially im- 
possible for ships trading to and from 
Australia to engage in the coastal 
‘rade. 
26. The first of these effects is com- 
parable with the effect which is pro- 
duced bv wnprotection on the cost of 
rticles which have to be exported and 
old at the world’s price. The second 
flect means that if non-Australian 
hips are excluded from the coastal 
rade, which would otherwise natur- 
lly form a part of their activities, the 
reights which have to be paid for the 
'emaining services are increased, and 
his, as we have already explained in 
espect of harbour dues and similar 
sharges, ultimately adds to the cost 
f the production of exported articles. 
27. We have dealt elsewhere with 
she cost of labour. In so far as it is 
yxcessive it is a handicap to shipping, 
1s to other industries. In the case of 
ressels engaged in the coastal trade it 
s offset by the virtual exclusion of 
vther vessels from that trade; but this 
loes not affect the fact that any 
vbnormal cost of labour is added, 
‘hrough the medium of freights, to the 
ost of all goods landed at, or lifted 
rom, Australian ports. 
For these reasons we welcome, so 
ar as regards British ships, the 
wnnounced intention of the Common- 
vealth Government to repeal the 
roastal clauses of the Navigation Acts, 
nd to substitute a duty which we 
issume will not be prohibitive, 
recause, if it were, it would not really 
alter the existing state of things. 
28. The State of Tasmania requires 
pecial consideration in connection 
with the Navigation Acts. The report 
if the Joint Committee of Public 
\ccounts of the Commonwealth for the 
year 1927 says: — 
‘ Evidence placed before the 
Committee was emphatic and 
unanimous that the Navigation 
Act bad a detrimental effect on 
Tasmania by imposing a restraint 
on the free movement of passen- 
gers and cargoes.” 
The Committee, among their ohser- 
rations and recommendations, say:— 
“In approaching the question 
of what can be regarded as 
adequate communications between 
Tasmania and the mainland, it 
must be borne in mind that 
Tasmania, because of her compara- 
tive isolation and her separation 
by water from the mainland, is in 
a position entirely different from