The Grey River Argus TUESDAY, September 22nd, 1936. THE "AWATEA."

Grey River Argus, 22 September 1936, Page 4

The Grey River Argus TUESDAY, September 22nd, 1936. THE "AWATEA."

A political as well as a commercial significance has been given to the advent of th c netv liner “Awatea” by both the Governor. General of this Dominion and the deputy-leader of the Government of our neighbouring Dominion Both have said that she represents, not merely a bid for better profits by her owners, but one for .-.hipping supremacy in the Pacific on the part of British Governments. This is the explanation of the subsidy which the shipowners interests concerned expect jiresenlly to receive from four Governments, aggregating something like a ipiarter of a million per annum. There are, of course, precedents for this, but the. subsidy campaign that preceded the understanding illustrates the most modern phase of capitalism. It suggests indeed a sort of compromise with what hitherto had been decried as socialism. There are any number of people vho would say that the State ought not to engage in trading, but who have not the remotest objection to State funds I being granted Io private traders, whether shipping, bankers, exporters or any others. A while ago the British Governent handed out about five millions to complete the “Queen Alary” for the Cunard and AYhite Star Companies’ shareholders, and is now going to hand more than as much again to provide the same interests with another mammoth Al- - line]-. It would also appear that the “Awatea” is a product of the. idea, that shipping combines may expect a State subvention to enable them to improve their competitive abilities in the Pacific. Dr. Ear] Page, the Australian Minister, yesterday referred to the “Awatea.” as a most important, ship, although he said that the A'latson Line, to fight which she has been built, had not actually taken away passengers from thc owners of the “Awatea,” but instead had increased the number of travellers by offering improved facilities. The American Company obtains*

Stille aid. and that is the reason lor the opposing line being similarly aided. There is no doubt Governments in (he capitalist countries arc tending every yea r to spend increasingly the public money in aiding private capitalists to improve their (ravel facilities. Nearly four millions has been paid by thy British Govern menl to (he Imperial Airways Company in subsidies, while American air liners have been given Stale subsidies much more heavily. It might seem (hat all of this is simply' a proof that competition is not only inevitable. but is the life of trade and motor of progress. It will be admitted that New Zealand is interested in maintaining on the Pacific a passenger lin e undei British ownership. It had been argued that without State money or State protection in some othei fashion the line iu question conic not continue, in operation, even if as now stated, the American com petition had not meant a loss ii its passengers. .Incidentally there has been in this ease m tariff war. The public have t< pay for each and every improve mem in accommodation, speed ornamentation, etc. The stand arc! has not been set by the inilia live of the travellers, but rathe by the rivaj transporters. Th subsidy, therefore, in the case o the Pacific, like that of the Allan tic, is going to make simply .to costlier travel, unless the tiim saved makes up to the travellers in the great majority of cases for an increase in fares. Thus a new brand of "socialism’’—the capitalist brand! it might be interesting were it feasible to run other passenger liners, as well as those of the most elegant type, . whose object would by t° provide nothe fastest or most sumptuous travel, but the cheapest, consistent, of course, with reasonably accommodation. The tendency, however, is entirely the other wav. For this the shipowners hav e the responsibility. N'ow admitting the attraction these Homing palaces exercise, and the impetus they may give tourist traffic, there is still one question the solution of which can scarcely be given before years have passed. ° It is as to what is going to bo the ultimate upshot of this competition and the costs entailed. Will the subsidies roquir ( . to be progressively increased’ Iheip is no avowed intention to eliminate or restrict thy. competition. Rather arc thy indications that the subsidies will only operate Io intensify 7 it. It looks a better thing in the meantime lor the shipowners than it does lor anybody else. They' have now succeeded, with the aid of publicity and State patronage, in persuading people that their rivalry involves national, honour. No doubt, the "Awatea” will shortly lower the Tasman record, but if the Americans put on a. boat to go oily belter still, is that going io entail some more subsidy? This is the question. For (he answers we can only wail and sec. Meantime our annual con tribution is only 7 £‘20.000. II will be worth while so long as it does not begin to increase in proportion to the speed of the new liners and their cost.