Pacific Shipping

Hawke's Bay Tribune, Volume XXVI, Issue 227, 8 September 1936, Page 9

Pacific Shipping

PROPOSED SUBSIDY Recommendations From Australia TWO CLASSES OF SHIPS By Telegraph—Press Assn.—Copyright SYDNEY, Sept. 7. The “Sun’s” Canberra correspondent says: “Recommendations that Australia co-operate with other Governments concerned In an effort to maintain British shipping lines in the Pacific in competition with American services are understood to be contained in a special report submitted to the Federal Cabinet. The report was prepared by Hie Hon. G. R. Menzies, Attor-ney-General, and the Hon. Dr. Earle Page, Minister of Commerce, following London conferences with representatives of the British, Canadian, New Zealand and Fijian and the shipping interests affected.

“Proposals were discussed for an annual subsidy of about £250,000 to assist British ships to meet the heavilysubsidised American services. It is suggested that the subsidy be contributed on the following bqsis: Britain £90,000, Canada £BO,OOO, Australia £50,000, New Zealand £20,000 and Fiji £lO,OOO.

“If general agreement is reached for the ’ granting of a subsidy, it is suggested that the subsidies should be provided in competitive zones by the respective governments, jointly or separately according to the nature of the services.

“For important services shipping would be standardised into two classes —modern passenger liners with refrigeration space, and cargo steamers capable of a speed of 17 knots. “Shipping on all branch lines would be co-ordinated and placed on the most efficient working basis possible. Obsolete, uneconomic shipping would be replaced by modern vessels, so that as fine a service as possible could be provided. ’ ’