Rangatira’s losses GOVERNMENT HELP MAY BE SOUGHT

Press, Volume CXII, Issue 33063, 2 November 1972, Page 1

Rangatira’s losses GOVERNMENT HELP MAY BE SOUGHT

(New Zealand Press Association)

AUCKLAND, November 1.

The Government may be asked to help keep the new sl2m inter-island steamer Rangatira in service. The Rangatira, bought by the Union Steam Ship Company to replace the Wahine, has been running at a loss since she came into service in March.

Tonight Sir Reginald Smythe, deputy chairman of the company, said in Auckland that consideration had been given to selling the 9300ton vessel, which can carry 768 passengers and 200 cars.

Sir Reginald Smythe said: •‘lf the Government wants this service to continue something will have to be done to get more trade for the ship.”

Although no approaches had been made to the Government, he said, he thought that

the matter would end up in discussions with the Government.

Sir Reginald Smythe was commenting on a terse statement in the company’s annual report, released today: “The economics of the vessel’s operation are in serious doubt at this stage. Unfortunately rotor failure in a turbine forced the lay-up of the vessel in September and October and this has further affected the economic viability of the vessel.” -

Sir Reginald Smythe said: “The Rangatira is not a profitable operation but, ,of course, she was ordered before we came into it. We have to make the best of it. “We thought about selling the boat elsewhere but that would have cost more. than she originally cost. She would have needed rebuilding. To sell her to another line or shipping service, she would require to be more than a one-night operation.” The Union Steam Ship Company is now owned jointly by New Zealand and Australian interests which bought the company from its former owners, the English P and O group. GENERAL POSITION But, in spite of the Rangatira’s troubles. Sir Reginald Smythe said, the company as a whole was making a profit. Operating profit was sl.9m against a loss of $513,909 for the 12 months to September 30, 1971.