TRADE WITH SOUTH AFRICA.

New Zealand Times, Volume LXXII, Issue 4565, 17 January 1902, Page 3

TRADE WITH SOUTH AFRICA.

DI JMTATION TO Til !•: BCi'-MIFI

THE GOVERNMENTS INTENTIONS

A deputation which represented dairy importers waited upon I he Brenner yesterday with reference to shipments to South Africa. The members of the deputation wore Messrs J. IT Alachwaii, David J. Nathan (Defiance Duller I 1 aelorics), James Vonng (New Zealand Eanners’ Dairy I'ldon), George Dim (Wellington Fresh I 1 oral and ice Company), J. J. Reach (Joseph Nathan ana fo.), and C. K. Beattie (National Dairy ITiion). Representatives of other firms in sympathy with the deputation Mere unable to he present. Air Beattie said the Australian markets were practical ly closed to -Sow Zealand exporters of dairy produce, and limy therefore looked to the Cape for an outlet. The deputation would like to know whet her the Government vas making arrangements for the eemcyance of dairy produce to South Africa, nr whether there was any probability of arrangements in that direction being made.

Air AlacEwan said he thought the main object of the exporters Unit Hi rnam was to draw attention to the lad that they believed there was a splendid opening in the South African market for New Zealand produce, and especially for 1 he lines which they were interested in. As the Premier was aware, they were shut, out of the Australian market in consequence of the Commonwealth tariff. They believed the loss of. that, trade would he more than made up if they got. a regular and sat isfaotnry Steamship service to South Africa. The exporters had all their connections made, and they believed that South African buyers were prepared to make contracts either f.o.b. here or c.i.f. South Africa, if a reasonable undertaking could he given to deliver at stated times with a fair degree of certainty. The exporters had been working as best they could individually for two or tlwee years, but their efforts had not been successful. They considered it was one of the functions of a Government to assist in the opening of new markets, especially by means of new services. The quality of New Zealand’s dairy produce was second to none, and it was believed that South African buyers wore prepared to take consignments of it, especially of butter. It was necessary, if the trade was to be properly established, that there should be a fair amount of certainty about the shipping of the produce. To ship via Australian ports meant additional expense. If the Government was not prepared, or if it was not quite ready to subsidise or institute a regular direct service from Now Zealand to' South African ports, the deputation would like to know whether it would bo prepared, in the meantime, to give a small subsidy to enable exporters to .ship from Wellington via Sydney or from the south via Melbourne, so as to connect at those Australian ports with the regular South African boats. Exporters .believed they could sitip via Sydney at an increased cost of from ]d to jjd, if ordinary storage were used as far as Sydney. If cold storage were used to Sydney, it would mean practically Id more. That represented a handicap of from fd to Id on New Zealand exporters in their competition with Sydney and Melbourne merchants. They felt there'was a sple idid chance in the South Africa market. and they were prepared to give everv assistance as individuals or firms, but they believed that the case was one in which they must look to the Government to see that a service-between the two countries was established on a proner working basis.

Tho Premier, in reply, said lie was happy to bo able to inform the deputation that in the course of a day or r.wo the advertisements for these steamers would bo published. Ho hoped within a month from now to bo able to announce that they had .secured a direct, steam service between Now Zealand and the Cape. Tho question bad boon besot with difficulty, and tho Minister cf Trade and Commerce and himself had taken some considerable trouble to obtain information. First they had had ro inquire as-to tho class of boat to bo run. Tlio boats must bo suitable for the trade, taking juto consideration tho character of the harbours of South Africa and tlio accommodation and means of discharge there. Another matter,was tlm the Government wanted to embrace Western Australia in the route. Notwithstanding the tariff, that State would be a market for 501110 of thoir Now Zealand produce. The next question was what, tho freights should bo. There was also the question of’whotlipr they should make arrangements for flic carriage of passengers as well as of mails .from Now Zealand to tho Capo. They had now finally come to a conclusion, and there was only one point on which they were seeking further information. He hoped to have tho information he required by the next day or Saturday at> the latest, and if so, tho tenders would bo. published either 011 Monday or Tuesday. Coming to tho next question, as to what tho Government intended to do in the interim, the answer was “Nothing.” The deputation would appreciate tho position in which the Government was placed. It could not devote the money voted by Parliament for tlio purpose tho deputation now asked it should bo devoted to. That would bo equal to tho giving of a bonus. The ■ deputation was asking for a bonus on v produce exported of jd a pound, leaving it to the shippers to got tho produce to South Africa as host they could. That, of course, was not what Parliament intended. Parliament voted_ the money for a direct, steamship service to Sfonth • Africa, so ho could not devote it to the purpose mentioned by the deputation. He could not very well subsidise butter and cheese. Producers of other articles would then also ask for assistance to get them'to market; and they would have an equally strong claim as the exporters of dairy produce had, because tho money voted by Parliament was for tlio conveyance of all produce, and not any particular kind of produce, to the Capo. Continuing, the Premier said ho was only too glad to bo in a position to give flic deputation tho information which be had imparted. .There was nothing further that lie need add, except that tho Govcrnout hoped to get a good line of steamers, and that the service would bo a success. Ho was pleased to hear from the deputation that there was every probability (bat tho market would prove .satisfactory. Tho Government was in possession of a very able report from its Trade Commissioner, Mr Gow. And be might say that Mr Gow had informed tho Government, as the deputation had informed him (Mr Seddon), that there was. a good market in South Africa for New Zealand produce. Tho advice that Mr Gow tendered was, tho Premier believed, in tlio best interests of the exporters and producers of tliis colony. As to the erection of> cold stores in South Africa, by tie. New Zealand Government. Air Gow did not seem to bo in favour of that step. Tim Commissioner thought that I to established firms in South Africa were now in such a.position that snob a step might militate against Now Zealand produce. Tho Premier added that

he was glad to be able to make theannoimcemeiit, he had just made. Ihe Government wished to have the service with Soulh Africa made an accomplished fact, because ii had felt that the producers of Xew Zealand bad been labouring under a handicap. He was satisfied that if they had had direct commiinication during the last twelve months or two years a, much larger amount of Xew Zealand produce would have found its way into South Africa. As it was, a good deal of New Zealand produce had gone there from Australian ports. A.nd in that time the middleman had been taking Ids profits. Air Nathan, in thanking the Premier for receiving the deputation and answering its inquiries, said he thought. Air Seddon had misunderstood part of Air MacKwan's remarks. I he deputation was not asking for a subsidy or bonus on the export of butter or cheese. What they wished to know was whether it iron Id not bo possible to subsidise the Lnion Steam Ship Company to enlarge the freezing space in its intercolonial boats so as to enable exporters here to get dairy produce carried in the best possible manner to Sydney or Aleibourne for transhipment ‘to ‘South African boats. The deputation was not asking for a bonus on the export of dairy produce. They suggested that more cold space might bo provided on the Union Company’s intercolonial steamers if that company, which was a Now Zealand company, was given a subsidy in consideration of its meeting the requirements of the dairy produce trade of this colony in Ihe manner indicated. At present the cold space was limited, and dairy produce had to go as ordinary cargo unless the cold space was secured before it was taken up for fish.