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
