STATEMENT BY THE PREMIER.

Auckland Star, Volume XXX, Issue 230, 28 September 1899, Page 5

STATEMENT BY THE PREMIER.

WELLINGTON, September 20

'In Committee of Supply on the Estimates, item yE4B,OSI, conveyance of mails, the Premier made a statement regarding the San Francisco mail service. In reply to a question by Mr Massey he said the present contract would expire in March next, but the. proposal for a fortnightly service was not lost sight of. Practically the service would continue for another year. Three steamers, with a guaranteed speed, of 17 knots an hour, were being built for the service. They would perform the trip between San Pruncisco and Auckland in 16 days, the time between this colony and London being reduced to 26, ov.SSf dpsIt was believed the reduction in time would have the effect of expanding the trade. It was admitted that the San Francisco service was the most advantageous in regard to speedy delivery of: mails, though not the best for trade. But a fortnightly service would, largely increase the cost. The.lmperial authorities, did not favour the San Francisco service, and had notified the Government that it need not - expect any further aid in that direction.'For this year nothing could be done, because' the steamers would not be ready to be placed on the route,.and if tenders were invited to-morrow for a five years' contract there would be no tenderers. At present the United States would not give more than' a yearly guarantee, but he was in hopes of inducing the States to join with this colony in a five years' contract for a fortnightly service. He proposed to submit proposals to the House for the renewal of the service for another year, and also to authorise the Government to enter into negotiations so as to prepare for a five years' contract at the expiration of a year. The Government could not do more than that, and when the subject came before the House he would ask for extensive powers to enter into negotiations for an extended term.

Mr McGowan thought the tenders should be invited in sufficient time for offers to be received within nine or twelve months, so that other companies besides the Union, Steamship Company might have the chance of competing. Possibly by that means more advantageous terms might be obtained and a superior service.

The Premier said there was something in the .suggestion, but what would happen if New South Wales were to decline to join in a five years' agreement? Even if the Government of this colony were to conclude a contract at once for a five years' service it could not commence for another year, and meantime full information could be obtained.

In reply to Mr Buchanan the Premier said the Government would stipulate that one-third of the steamers should be British owned.

In reply to Mr Holland, the Premier said at present the three conti-acting parties were New Zealand, New South Wales and the United States. If he were to at once bring down proposals for a five years' contract it would be playing with the House. It would be better to have a contract for a year, and meantime to negotiate with New South Wales and the United States for a five years' contract, with an improved service, the conditions of which he would state when the matter came before the House.

Mr Massey hoped a five years' contract via San Francisco would be concluded as soon as possible.

Mr Buchanan: Via Vancouver. Mr Massey: No; via San Francisco,