SHIPPING SUBSIDIES

Evening Star, Issue 20595, 22 September 1930, Page 3

SHIPPING SUBSIDIES

TOTAL ABOLITION ADVOCATED SOUTHLAND FARMERS STAND TO THEIR GUNS [Special to th* ‘Star.’] INVERCARGILL, September 20. When si strong deputation of representatives of important loeal bodies waited on the Southland Exceutive of the Farmers’ Union at its meeting today to remonstrate with tho fanners on their resolution passed a month ago urging discontinuing tho subsidy for the Melbourne-South Island shipping service, it was confidently expected that tho executive would bo induced by the eloquence of tho deputation, and the weight of the figures presented, to rescind tho previous motion, which has not yet been forwarded to tho Prime Minister. It came as a surprise, therefore, when tho mooting did not merely confirm its earlier resolution, but decided to request discontinuance of all shipping subsidies, particularly the amount of £CO,OOU for the ’Frisco service.

ft was maintained that, with tariff barriers raised against New Zealand produce by Australia and tho United States, the dominion derived no benefit from tho subsidies paid for maintenance of the shipping services, and it was contended that, if any subsidy was to bo paid, it should bo , forthcoming from the countries which bcnclittcd from tho trade.

Tho deputation prcseiiicd a strong case, urging that there should he proper communication between Australia and tho South Island of New Zealand, and it was desirable that tho service which had been in operation before iho Avar should be built up again, in order that tho South Island should have flic benefit of direct trade.Avith the Commomvoalth, giving an opportunity for tho primary producers of this part of the dominion to sell some of their products in tho market, across the Tasman. Government assistance Avonld bo necessary until the support to the service became sufficient to make it selfsupporting. For the first year a subsidy of £6.000 had been paid, and it Avas not advocated that a largo sum should be paid by tho Government. During the first year that the service had been iii operation Avith Government assistance, tho outAvard cargo bad amounted to 0,710 tons from tho ports of Wellington, Lyttelton, Dunedin, and Bluff, and tho imvard cargo 10,080 tons. Regret was expressed that, just as the support of tho avliolo of the South Island, and the acquiescence of tho North island, had bcchi secured to the subsidy, the Farmers’ Union Executive should make a drastic pronouncement nullifying tho effect of the long agitation.

Immediately on tlic retirement of the deputation, tlio chairman of the previous meeting moved that the resolution be confirmed. Ho declared that the deputation had failed to enlighten him that the service was of anv benefit.

Mr W. J. M'Gregor, \vho first brought the question under the notice of the executive, declared that tho service would not bo of any value to New Zealand until Australia agreed to a reciprocal tariff. The present harriers effectively prevented exportation to the . Commonwealth -of dominion products. Tho balance of trade for tho past year ■ was stated to be £4,000,000 injavour of Australia, and it was contended that, if any subsidy was necessary. it should be paid by the Commonwealth Government. Tho subsidy of £GO,OUU for the ’Frisco service for the establishment of a quick mail service to Britain was now rendered quite unnecessary, when tho journey via Panama occupied only two days more, and the tariff against Now Zealand products nullified tho possibility of trade with tho United .States or Canada.

“ New Zealand has paid millions aAvay year after year, over and above tho balance of trade to Australia, Canada, and America, million s which avo noAv sorely realise should have gone to tho country on Avhich avc absolutely depend for our bread and butter,” continued Mr M'Grcgor. " Like a bolt from the blue the day has struck us when Britain can no longer pay us tho high prices of the past for our produce, Avhilo her industries languish for the Avant of our support that wo have so carelessly given to countries avlio count ns as naught.” Finally a resolution was passed “ that, in vieAv of the economic situation, and tho trade barriers raised against Ncav Zealand produce by Australia and the United States, ail shipping subsidies to these countries Go made a matter of negotiation with flic Governments concerned, and not rcnoAved until trade Avith these countries could bo re-established on a fairer basis than at present.”