CANADIAN SHIPPING.

New Zealand Herald, Volume LXVI, Issue 20332, 13 August 1929, Page 5

CANADIAN SHIPPING.

NEW SUBSIDISED SERV!CI.

VANCOUVER TO .AUSTRALIA

MAY CALL AT NEW ZEALAND.

[FROM OUR OWN CORRESPONDENT. ] VANCOUVER. July 24. A new shipping service, to be mainly devoted to lumber, is to be established at Vancouver, under a subsidy from the Dominion Government. Before the contract was advertised it was learned that the Union Steam Ship Company, whose vessels maintain mail communication between Canada and Australia and New Zealand, could not meet 'the situation as regards lumber export. The contract provides for an annual subsidy of £IB,OOO and will form a very useful adjunct to tho Australian reciprocity treaty, whose benefits New Zealand enjoys.

Tho treaty runs tho gauntlet of some heavy fire in the House of Commons at Ottawa, and from Federal politicians and dairy farmers during the recess, mainly on account of the success of New Zealand butter on the Canadian market. Australia until recently got tho blarne for all the ills or supposed ills Canadian dairy farmers suffered at the hands of New Zealand butter and, when each butter shipment arrived, there was a demand for the abrogation of the treaty. The establishment of the subsidy is expected to whittle down a good deal of tho criticism levelled at the treaty in tho past. Lumber will be the principal cargo, as there is always a big demand in Australia for British Columbia lumber. The sponsors of the treaty and subsidy in Canada hope that they will result in much of the trade in lumber that has gone in the past to tho mills of Washington and Oregon being diverted to Canada. Some years ago, when tho Canadian Government Merchant Marine was running regular steamers to Australia and New Zealand, a respectable trade in lumber was built up in Sydney and Melbourne. When the ships were withdrawn, the trade fell gradually into the hands of American firms, which had regular sailings and could provide regular cargoes, and which, aided by American Government subsidies, were also able to cut prices to the detriment of Canadian lumber. British Columbia shippers will now have the advantage of such rates as can be provided under the subsidy and of being able to make contracts with Ausi tralian dealers, backed by regular sailings. ! At present there is no preference for lum- ■ ber under the Australian treaty, but out of the hotch-potch of criticism levelled against the new United States tariff this is a development of Empire trade that Canadians are looking forward to. Trade in other commodities may develop between Canada and the two sister' Do. minions by the new line plying to Melbourne and Sydney. Whether it will call at New Zealand ports, as tho Canadian Government boats did. is a matter for arrangements in the future. It has been a complaint by Mr. Bruce and Mr. Coates when they passed through Canada that this Dominion does not buy enough of the products of Australia and New Zealand. In this connection the Vancouver Daily Province, a warm supporter of the treaty and the subsidy and the improvement of fiscal relations between the three Dominions, says:—"lf we expect to increase our exports materially, we must increase our imports. The whole obligation does not, of course, lie with Canada. If Australian producers wish to market their goods in Canada, it is up to' them to adopt salesmanship methods, advertise their wares and press them. With thi3 end in view. Australia recently sent a trade commissioner to Canada, and representatives of privatp firms will no doubt follow. The new steamship line, having space to offer on tho return trip, _ should be an important factor in increasing the volume of Australian goods brought to the Dominion."