STEAMER SERVICE.

Press, Volume LXVI, Issue 20039, 22 September 1930, Page 10

STEAMER SERVICE.

BLUFF-MELBOURNE. PROTEST AGAINST SUBSIDY. (OFECIAL TO TKB I'EESS.) INVEKCAEGILL, September 23. When a strong deputation rcpresental tive of important local bodies waited I on the Southland executive of the Formers' Union at its meeting to-day to remonstrate with it on the resolution pressed a month ago urging the discontinuance of the subsidy for the Mel-bourne-South Island shipping service, it was confidently expected that the executive would be induced to rescind its previous motion, which has not yet been forwarded to the Prime Minister. It came as a surprise, therefore, when the meeting did not merely confirm the earlier resolution, but decided to request the discontinuance of all shipping subsidies, particularly the amount of £60,000 for the San Francisco service. It was maintained that with tariff barriers raised against New Zealand produce by Australia and the United States, the Dominion derived no benefit from the subsidies paid for the maintenance of the shipping services, and it was contended that if any subsidy was to be paid, it should be forthcoming from the countries which benefited from trade.

Tho deputation urged that there should be proper communication between Australia and the South Island of New Zealand, and that it was desirable the service which had been in operation before the war should be built up again in order that the South Island should have the benefit of direct trade with the Commonwealth, giving an opportunity for the primary producers of this part of the Dominion to soil some of their products in the market across the Tasman. Government asnistanco would be necessary until support to the service became sufficient to make it self-supporting. For the first year a subsidy of £6OOO had been paid and it was not advocated that a large sum should be paid by the Government. During the first year that the service had been in operation with Government assistance outward cargo had amounted to 6719 tons from the ports of Wellington, Lyttclton, Dunedin, and Bluff, and inward cargo was 10,083 tons. Regret was expressed that juGt ai» the support of the whole of the Soujth Island.and the acquiescence of the North Island had been secured to tho subsidy the Farmers' Union executive should make a drastic pronouncement nullifying the effect of the long agitation.

Resolution Confirmed. Immediately on the retirement of the deputation the chairman of the previous meeting moved that the resolutionbo conflrinod. He declared that the deputation had failed to enlighten him that the service was of any benefit. Mr W. J. McGregor, who first brought the question under the notice of the executive, declared that the service would not be of any value to New Zealand until Australia agreed tp a reciprocal tariff. The present barriers effectively prevented exportation to the Commonwealth of Dominion products. The balance of trade for the t>ast>ear was stated to be £4,000,000 m favour of Australia, and it wa» contended'that If any subsidy was necessary it should be paid by the Commonwealth Government. The subsidy of £60,000 for the San Francisco service for the establishment of a quick mail service to "Britain was now rendered quite unnecessary when the journey via Panama occupied only two days more and' the tariff against' New Zealand products nullified the possibility, of trade with the United States or Canada.

"New Zealand hftfl paid millions sway year after year over and above the balance of trade to Australia, Canada, and America, millions which we now sorely realise should have gone to the country on which we absolutely depend for our bread and butter,"' continued Mr McGregor. "Like a bolt out of the blue the day has struck us when Britain can no longer pay Us the high prices of the past for our produce, while her industries languished for the want of our support that we have so carelessly given to countries who cottiit us as hftught." A resolution was passed: "That in view of the economic situation and the trade barriers raised against New Zealand produce by Australia and the United States, all shipping subsidies to those countries be made a matter of negotiation with the Governments concerned and not renewed until trade with these countries could be re-established on a fairer basis than at present."