DWINDLING ISLAND TRADE.

Auckland Star, Volume LII, Issue 190, 11 August 1921, Page 7

DWINDLING ISLAND TRADE.

• —i . AUCKLAND MERCHANTS PERTURBED. COMMITTEE TO INVESTIGATE. At a conference called by the Auckland Chamber of Commerce held ve"sterdav afternoon. Mr. A. G. Liinii, president of the chamber, in the chair, it was derided to set up a committee of island traders and others to act with the chamber in getting better communication with tlie Pacific Islands and do ,all possible to get back the trade between New Zealand and those islands. There ■was a representative attendance. Several letters were read, including one from the Department of Industries and Commerce and another from Messrs. Henderson and McFarlane, both of which called attention to the heavy blow to Auckland trade by the recent establishment of a heavily subsidised steamer service between the Commonwealth of Australia, Fiji and England. Messrs. Henderson and McFarlane said they understood that Uie freight on Cnpra "between Suva and the United Kingdom was ft! a ton as against £10 S/6 on copra transhipped through Auckland. Mr. Lunn said the Union Steamship Company did not seem inclined to foster the island trade, which was once such an important thing to Auckland. What was wanted was some means of stimulating the Company to activity or finding some other means of improving the present inadequate service. It should be brought home to the Union Company that it ought to be prepared to keep thingu going and face losses like every other business concern during these abnormal times. The Union Company could resume the service at any time, but once the trade was lost to Auckland and New Zealand it could never be recovered. Mr. R. Burns said that one reason why the trade had tended to drift away from Auckland was that during the war when Government control- was in force, the island trade was the first to suffer when there was a. shortage of any commodity. Referring to the Eastern Pacific trade he commented on the fact that though Auckland was the place where the trade was developed it was now necessary for passengers to go through Wellington both on the outward and the fnward trips. Mr. Burns said he understood that the slackening off of ihe fruit trade from the Eastern Pacific was due to the unsuitability of the steamer and irregular running. By the time the fruit got to Auckland it was often rotten. With regard to the Western Pacific trade, which was formerly an important one, it would not he regained unless we could get a moderate freight rate. He thought that one reason why the steamer services had been so unsatisfactory was that business was controlled from Dunedin, whereas it should be controlled from Auckland by the men who were familiar witli all the needs and peculiarities of the trade. SOME SUGGESTIONS. Mr. A. Millar advocated a revival of the old round trip service which gave, a direct connection between Tonga and Auckland.

Mr. D. B. Russell gave instances where thousands of cases of fruit bad been wasted- through the failure of the steamer to call in the Cook Group. He advocated a 6teamer to collect fruit in the islands and take it to one central port for shipment to New Zealand, ana he mentioned the name of a Canadian firm which would be willing to consider proposals for a service between New Zealand and the islands.

Mr. A. SpenceT said something must be devised, as they could not afford to let -the valuable island trade slip through their hands. If New Zealand had done the proper thing six years ago and put an export tax on all produce there would have been a sufficient fund in hand to meet such a crisis a3 had arisen in the island trade. If they had a fund they could talk about establishing or subsidising services. On the motion of Mr. Lunn, seconded by Mr. Spencer, Messrs. E. Anderson, W. H. Grove, E. Turner, A. Donald, A. Millar, F. Colbeck, A. Spencer, and a representative from Merediths, Ltd., were appointed a committee to represent Island interests, and act with the Chamber of Commerce in investigating the question of Island trade, a report to be drawn up and submitted to the Chamber at a future date.

UNION CO.'S ANSWER. Mr. D. Carter, manager of the Union Steamship Company at Auckland, was present, and -was asked to address the meeting. He said he could not see on what they 'based the charge that the company 'had neglected Auckland interests in the Island trade. As a matter of fact, wherever there was trade to -be done his company was quite alive to the fact, and catered for it. The company had always catered amply for the trade between the Islands and New Zealand. As an instance of what the company had to face he quoted the case of the steamer Flora, which had arrived from the Islands on Tuesday night. She brought 5-10 tons instead of 1200 tons. The steamers in the trade were easily carrying all the cargo that was offered. As far as the trade in copra was concerned, and. the rate to London, he did jiot see how a company could quote a jate which would make it profitable for i.nyone to send copra through Auckland for transhipment, as against the rate charged iby the subsidised Commonwealth line between Suva and London direct. As far as the Union Company was concerned, if there were a demand for more steamers in the Island trade it would be prepared to face that demand. Mr. Lunn said he understood that the Flora was not a suitable boat, and that was why she came back half full. That was a matter which could be eonisdered by the committee that had -been set up, and another matter was that of subsidy. If a subsidy were aibsolutely essential, then it must 'be considered. i'lr. H. W. Hudson said the subsidy was the crux of the whole matter. The}' must have a schedule service, and to e.naible that to be run there must bo a subsidy. Mr. Lunn questioned whether the Union Company was sufficiently longheaded to be able to look into the future and see what this Island trade would be.