MAIL SUBSIDIES

Evening Post, Volume CX, Issue 35, 9 August 1930, Page 10

MAIL SUBSIDIES

ECONOMY URGED

PAYMENT TO-UNION COMPANY

The question of the subsidies paid to the Union Steam Ship Company and the Governments of the United States and Canada for the carriage of mails to Europe via San Francisco and Vancouver was raised by Mr. C. A. Wilkinson (Independent, Egmont) during the' discussion on the Estimates in the House of Representatives yesterday afternoon. He was- told by the Postmaster-General (the Hon. J. B. Donald) that the present contracts terminated in March, and he requested that these be not renewed) but that the Government consider the transmission of mails in the future via Panama. He estimated that the saving would bo in the vicinity of £60,000. ■ Mr. Wilkinson said that the Government was at present paying a subsidy of £25,000 for the San Francisco service and £20,000 for the Vancouver service, while £9000 was paid to the United States Government for the carriage of mails across America and £5000 was paid to Canada for a similar purpose. The direct route was now practically as expeditious as the heavily subsidised routes, and he hoped that the Government would look into the whole position with a view to effecting economies. He also considered that tho cost of the services between New Zealand and Australia was excessive, but they were not under consideration at the present time. The shipping companies were making big profits, and they had an arrangement whereby the oil they used for fuel came into tho country duty free. Thus it was time that tho Government explored the position.