STEAMSHIP SUBSIDIES

New Zealand Times, Volume LXXI, Issue 4306, 15 March 1901, Page 4

STEAMSHIP SUBSIDIES

It is very probable that the Government will annciunco in a few days the amount of subsidy that will be given to either! the New Zealand Shipping Company or the Tyser Company for the institution of a regular steamship service between this country and South Africa. One of the conditions the Government will insist upon is that the rates of freight shall be fixed for a definite period, and in order to earn the subsidy the service will have to he regular and adequate. The Premier has been assured that a London shipping company is willing to establish a service between Cape Colony and New Zealand, so that there will be no dearth of shipping facilities for the'development of a trade which, it must be confessed, has been too long neglected. In determining to offer a substantial subsidy for such a service as this country needs, the Government is only following the example and policy of all commercial nations. We are in the habit of criticising adversely the United States Government for having passed a Shipping Subsidy Gill, whereby the Oceanic Steamship Company now trading to New Zealand is enabled to earn sixteen thousand dol- • lars each trip from San Francisco to Sydney -via Auckland. It appears, how- > ever, that the United States Government I is not so great a sinner, if sin it be, in : this matter as those of other countries. ' Indeed, the amount of shipping subsidies ; paid TTy European Governments is far in excess of that expended by the Gov--1 eminent at Washington. Last year Great Britain paid £764,000 in mail subsidies and bounties, whereas the United States expends £357,000, or lass than half of Britain’s expenditure. In proportion to the shipping engaged, however, the British Government paid less than the United States; and the payment made does not seem too groat for the services rendered. Seven large companies participate in the bounty, and something like one hundred and sixty vessels, representing a capital value of twenty millions sterling, are engaged. If America worq, to pay in proportion to the extent of shipping engaged in her trade and mail services, the Unh-.i 1 ■States would have to pay ten times as much as is now expended. France spends a million more than Great Britain in the way of mail subsidies, and this enable* French steamers to compete successfully with the British steamer even in Australian waters. For the purpose of enabling the public to travel more cheaply and attract foreign custom to the French boats, the Government of the Republic spent in subsidies last year a sum ex ! ceeding a million, and three-quarters sterling. The Government of the United States has adopted the methods of older countries in declaring that the shipping subsidies can only be earned by Ame-rican-built and owned steamers. There is no valid reason why the same policy should not, with modifications, be pursued’by the Government of this country. It is true that- New Zealand has no ships built, owned and exclusively manned by her own people, but there, are lines of steamers trading roundj

* our coasts and doing; our intercolonial traffic the prosperity o' which is linked with of this country, and these might he encouraged and subsidised sufficiently to enable thorn to compete with tlio 'American lino, and extend and develop the production and commerce of New Zealand. The South Island merchants, holding largo stocks of such farm produce a? South Africa is most in need of, arc impatient at the Government’s delay, and arc urging the Promier to action. We have reason to believe that the matter is all but settled, and as there is a demand for various kinds of New Zealand produce in the South African [ market, the trade should prove profitable to our producers, provided freights are sufficiently low. A substantial subsidy is necessary to enable the shipping company that may undertake the service to compete successfully with the subsidised vessels of foreign nations, and wo have no doubt the people are prepared to pay the price in order to secure) such a- desirable market.