Greymouth Evening Star. AND BRUNNERTON ADVOCATE. SATURDAY, DECEMBER 14th., 1935. PACIFIC SHIPPING.

Greymouth Evening Star, 14 December 1935, Page 6

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. SATURDAY, DECEMBER 14th., 1935. PACIFIC SHIPPING.

yHE announcement that the shipping services between New Zealand and X. America, run by British companies, are to be withdrawn, is one that will give cause for regret, based on sentimental as well as commercial reasons. Such withdrawal has been threatened for a. long time, but the previous warnings were, perhaps, not taken seriously. The trouble, of course, arises from the competition by U.S.A, concerns, which are heavily subsidised by their government, under the form of mail contracts, etc., and which are thus placed in an advantageous position. According to the P. & O. Company, its Pacific services have been run at a loss for several years, and it cannot be reasonably expected that the Company will go on meeting these annual deficits. It has sought government financial aid, or legislation limiting American enterprise’ but without success.

The present fares and freights are not so low as to arouse the gratitude of the passengers and icrehants concerned, and if these

charges were increased, patronage would decline. The British, New Zealand, Australian and Canadian Governments, have not, hitherto, been enthusiastic about granting subsidies. Much negotiation has taken place, but apparently, the ease presented by the shipping companies concerned, has not been considered strong enough to justify | calling on the national treasuries. As for placing any form of embargo on American ships using British ports, this raises a question with wide ramifications, and a solution of the problem has not yet presented itself. The U.S.A. Government does not permit unfettered trading by foreign-owned ships at American ports, but it is less easy to retaliate than appears on the surface. The Matson line is the principal competitor, but apart from Auckland, which receives large sums annually, through the Matson liners’ calls, there would be objections raised in many parts of the Dominion, were the Matson or other American ships barred; from this country. The Matson facilities of transport have proved a convenient supplement to the Britishowned vessels, especially in times of industrial disputes in New Zealand, or Australia. The present hold-up in the Commonwealth supplies another instance of this; the Monterey bringing passengers to New Zealand, who would otherwise be held up, indefinitely, at Sydney. English and American-mails, too, arrive more frequently. Nevertheless, a real effort must be made to retain what are now the main shipping services* between this country and North America. The Labour Ministry may prove more sympathetic where subsidies are concerned. Some may think that the P. & 0. Company is bluffing. making a last desperate effort to obtain help. So little information has been divulged to the public over the whole business, that comment has to be nebulous, but the principle that the Pacific shipping services should not be left as a monopoly for the Americans, or other foreigners, will be generally supported. The Americans cannot be blamed for making the most of their opportunities, unfair as their trading system may seem. Shipping companies complain 1 often of meagre profits, or heavy losses, despite charges being high enough from the customers’ viewpoint, and it would seem that the expenses of running the services have been permitted to become too high. Any attempt to reduce wages ' is energetically opposed, but there may be ways and means of lowering the overhead and maintenance costs. Subsidies to shipping mean that the general taxpayer will have to pay whatever sums are granted. The stoppage of the present regular services would be disastrous in various directions, as apart from the officers and crews involved, waterside and transport workers would be hard hit. Subsidies, like tariffs, rarely remain at their original figures, and the ultimate cost to the countries served, might in due course, become very heavy. Doubtless, the new Labour Government will give careful consideration to the question, and may succeed in finding a practical answer, which should depend on the re- | ceipts and expenditure by the companies involved. The public will be against the withdrawal of the British ships and also against the payment of subsidies. If one of these evils is inevitable, the Government, when it has full information, must decide which is the lesser.