PACIFIC SHIPPING

New Zealand Herald, Volume LXXIII, Issue 22349, 21 February 1936, Page 12

PACIFIC SHIPPING

SUBSIDY QUESTION

VANCOUVER-CHINA SERVICE CANADA'S REDUCED GRANT CRITICISM' OF GOVERNMENT By Telegraph—Press Association— Copyright (Received February 20. 5.5 p.m.) OTTAWA, Feb. 19 Declaring that the Government ■was shirking great responsibilities for the Empire in the Pacific by opposing shipping subsidies, Mr. G. G. McGeer ' (Vancouver), in the House of Commons, clashed with the party by denouncing the cut of 349,0' X) dollars in the ejrant to the Vancouver-China service. He said the Government should realise what •was being done by he Mother ' Countrv at 'Singapore and Hongkonc;. Japan had beconjie a leading war Power. t Mr. R. L. Baker (Conservative— Toronto > interjected: " Therein lies the danger." Denouncing the attack as heroics, the Minister of Finance, Mr. Charles Dunning, defended the cut as a needed economy. The Minister of Trade and Commerce, Mr. W. D. F.uler, cited the increase in the subsidy to the Vancouver-New Zealand service rendered necessary by American competition in view of the trade between Canada and New Zealand. Replying to the demands of several mem'bers that only white men should / be employed on ships for the Orient, Mr. Euler said that was impossible as most of the vessels were registered in London.

The mail service between Vancouver, Honolulu, Suva, Auckland and Sydney is maintained by the CanadianAustralasian Line, Limited,- with the vessels Aorangi and Niagara. The Canadian-Australasian Line was formed some years ago as a Canadian company, with a capital of £'1.000.000, the Union Steam Ship Company, Limited, of New Zeahind. and Canadian Pacific Steamships, Limited, being interested equally in the concern.

The New Zealand payment to the Canadian-Australasian Line in respect of services rendered under the terms of the mail contract is £'IS,OOO a year. About a year ago Canada's payment was increased to about 200.000 dollars annually. A yearly contribution is also paid by the Government of Fiji. A mail service is also maintained

between New Zealand and San Fran-

Cisco bv the /Union Steam Ship Company under contract with the New Zea- ( land Government, the steamers concerned being the Makura and the Maunganui. The monthly sailings of these vessels alternate with the sailings of those operated by the Canadian-Aus-tralasian Line, to provide a fortnightly transpacific mail service. The New Zealand Government pays £22,500 annually for the service under the San Francisco mail contract.