THE PRIME MINISTER

Otago Daily Times, Issue 20060, 29 March 1927, Page 7

THE PRIME MINISTER

IMPORTANT DEPUTATIONS. QUESTION OF NEW POST OFFICE. THE POSITION CLEARLY STATED. FINANCE THE DECIDING FACTOR. The Right Hon. J. G. Coates, prime Minister, was waited on at the Grand Hotel yesterday morning by an inlluential deputation, when the two most important matters placed before him concerned the building of a now Post Office in Dunedin and the arranging for a better steamship service between the South Island of New Zealand and the Islands of the South Pacific Jecan and also with Australia. The Hon. K. S. Williams (Alinistcr of Public Works.) was also present. The deputation numbered about 60, and included representatives of the Chamber of Commerce, the Manufacturers’ Association, the Fruitbrokcrs’ Association, the Employers’ Association, the Hardware Association, the importer., and Shippers’ Association, he Retailers’ Association, the City Council, the Expansion League, the Merchants’ Association, and the Trades and Labour Council. Mr T. K. Sidey, ALP., said that the large and representative deputation was indicative of local feeling in connection with the Post Office question. The old Post Office had been vacated in 1916, but it had not hq.cn clear to those outside the department what had been the real reason for the tep. I* could hardly have been that the building was not fit for occupation, because it had since beci used for other Government departments. In ordinary circumstances one might have expected that the Government would not havo abandoned the old building until it was ready to put up a new one. One could only' assume that it was because of the war conditions prevailing at the time that the new building had not been proceeded with. While the war was raging the people of Dunedin could ict reasonably urge for the prosecution of the now building, but once the wa; was over representations had been made rom time to time by local organisations, and local members of Parliament had urged in th-i House that the building should be commenced. It was in 1923, nearly four years ago, that a vote of £20,000 had been placed on the Estimates, it being stated that this was on account of the new Post Dffiee in Dunedin. Tho work had not been started that year, and the vote had been renewed the following year. The mggestion for the postponement of the building then came from the people of Dunedin. This had been done in consideration of tho fact that considerable claims for money wore being made because of the building of tho Dental and Medical Schools, . nd also because of considerable claim; ui respect of the Exhibition. The C'namber of Commerce and other bodies had been willing that the University buildings should take precedence, and it was -minted out that, while the Exhibition was building, a very large amount of labour would be ihsorb».d there. It had also been contended that the building of the new Post Office after the Exhibition would absorb the labour that would then he available, and prevent any possibility of unemployment following the Exhibition. It had been fully and generally assumed that once the Exhibition was over the Post Office would be gone or with. In May of last year a qualified promise had been made by Mr Coates that the building would be commenced within the financial year. The citizens would not stick exactly to that, because in a very short time the new financial year would commence. It had been said "that another reason for the postponement was on account of the increased expenditure on the Alodical School building. It was true that the estimates for that building had been exceeded, but he wanted to say that tho University Council throughout had acted with perfect good faith in the matter, ami was not in anyway to ho c.’ia i-gcd with _ a want of frank ness as had been done locally. Ho woulfl like to say that when the promise had been made' with regard to the commence me nt of tho Rost Office tho actual cost of tho Alodical School had been known to the department. It was on Alarch 7, six weeks before that, that the tenders for the complete construction of tho building had been sent on to the department in Wellington a-king for its sanction. The speaker pointed out that the estimate ot the cost of the Medical School, as furnished four years ago, taken In conjunction with the known cost of the shell of the building in February, 1924, had been exceeded by npproxi inately £13,000. On such a big building he felt sure it could not be reasonably suggested that a difference of £13,000 could not be sufficient to make any serious modification in the proposed plans of the new IV,at Office. Air Sidey referred to the question of loan money, and said that, as the Prime Minister knew, there was a good deal of apprehension witli respect, to our large borrowing. It might be that the Government proposed to curtail the amount of loan money, in view of tho possible unfavourable market. AVhatever money was available., the speakei submitted that m cases where promises ban been given special or preferential consideration should weigh. In anv case, they, at least, expected a fair share of whatever money was available. —(Applause.) STATEMENT BY THE MAYOR. The Mayor (Air. If. L. Tapley, AI.P.) said ho thought the citizens seemed unnecessarily apprehensive in regard to the attitude ol the Government in connection with the new Post Office. In view, however, ni the reply given to representations of the Ora go Expansion League last week by (he Post-master-general (the Hon. Mr Noswortliy), it seemed to bo indicated that the new Post Office would not he gone on with yet for certain reasons, some of which had been mentioned by Mr Sidey. One of them was the extra cost of the Alodical School, 'they submitted that the Medical School should not come into the Post, Office question ot all.—("Hear, hear.”) They claimed that the matter stood entirely on its own merits, and they felt that the Prime Minister would regard it in that wry- 1 hey f clt_ a little concerned about the reply ol ihe Postmaster-general. Deputations had met the lalo Air Massey, the Hon. Downie Stewart, and the Hon. Air Coates on the subject, and in 1523 the late Air .Massey practically had given a promise licit the new Post Office would be- gone on with as soon as possible. In IKS a deputation waited upon the lion. Air Crate-, who had given an unqualified promise that the building would ne commenced in 1926. Last year it had been suggested that tho old building should be pulled down in order to provide work for tho unemployed. The reply to that suggestion had been that some change had been made in tho plans, and that it was intended to put up a six storey building, m order to house the Gov eminent departments at present spread at. over the cdy. That seemed a very sound proposition. It was stated that, in view of the change, tho plans would not be ready till December. The assurance was then given that tho old building would be puller down in January. It was pointed nut thai it would be economically unsound to pul! down tins bulld'n-' <■’)' er "i.-ui-c about 10,030 square feet of space would have to be found at once for Government offices. 'lhe sneaker him next asked that the building should not be mill-d down till after the visit of the Duke of York, because thev did not want an eve ore in the centre of the city then .he Postmastergeneral had said that the now building ccuM not he gone on with this financial venr. Rut that did n-f matter if the l.qd-ff--' ■"'To CO! soon ; r, He- new financial year. In view of Iho promise ri -,i„le in lie- -livcnm o- Pm- m-d. 'be Micakcr thought tint the new building should bn cone on with right away. The. cost, of the building would lie stq-eac) over n few years. Tho deputation was repiv sentativc of all classes of the_ community, and be felt sure that the ’'"ime Almi-tei would see that the made would he kept, and that the Ir-iMin"' would he cornirenced oeme, lately.—tAppiai’-c.) AN IMPROVED OUTLOOK. Mx I 'ln vine (vice-pioddenl of (lie ' n hi it was recognised that the trade balance war, arrmn-i i -c ! mi ■ but it wnheliV.T'd that by the end of the present ■.car tire pendulum would swing the other way. Import? this year must be 'ess on account of the surplus stocks now field aa result of the excessive imports lad year and because of tho action of the hanks in tightening up money. Ihe situation v,-a = being helped by Iho improved spending power of the people of tho Old Count»v,

the same thin# applying to the Continent of Europe. Advanced prices had been received at recent wool sales and, owing io the competition among Continental buyers the bulk of the offerings had gone there. With the rental that would be obtained from the Garrison Hall building and the fact that all the Government departments would bo housed in the now building, it would probably bo found that tbo new building would pay for itself. He trusted that instructions would bo given to have the now post office commenced immediately. —(Applause.) PRIME MINISTER'S REPLY. The Prime Minister said ho would like to congratulate tho members of Parliament tor Dunedin district on tho excellent. manner in which they gathered round them the most powerful and inlluential men, individually and combined, to help their cause. (Laughter.I Thcv had put their case well, and ho had no intention of raising any point in opposition to tho statements made. Roughly speaking, ho thought Unit -Mr Sidey and Mr Taplov had correctly traced tho expenditure of public money, concerning Dunedin itself. He had never raised the question of overexpenditure, but lie had an admission of over-expenditure from Mr Sidey himself.(Daughter.) He would not use it against Mr dulev when he had occasion, as he hoped tie would, to criticise tho Government I i nti t ice.—(L a u gh t c r.) ■‘Tho position is just as slated, went on the Prime Minister. ”AVe had intended to go on with the Dunedin Post Office in 1926-27 —this financial year. . . . The Public Works Department has not been given any intimation with regard to suspension of operations- It went straight ahead witti matters after tho discussion of the matter hero last year. It went straight ahead with the preparing of plans and specifications and . general arrangement precedent to calling fo; tenders. I understand from Mr M’Kenzui (Public Works engineer) there has been no intimation to the contrary. Mr G. J. A!’Keiizic ; "No.” 'the Prime Minister went on to say that as far as the Public Vi orks Department was concerned the Hon. Mr Williams had done his job. He thought they would all agree, however, that it was wise very carefully to scrutinise and consider a building of this description. Ho did not think, h they had tried, they could have made any further advance than they had. But_ theie was tho cither side qf the question a rathor more serious one. He hoped it would bo only temporary. 'I ho Minister ot finance was finding some difficulty in finding all the money tho departments required. It was just a question of which works should bo gone on with first. If by chance the Minister of Finance found some difficulty, ho might havo to a:-k thorn to consider * a doforn'ent of tho Dost Office, I he position nt tho moment was that he had not definitely considered the matter. Ho thought matters would bo ready for consideration when they got hack to Wellington this time. 'lho question of what po.-t offices-and what buildings were to ho gone on with would engage their consideration. Ho appreciated all that had been said, but ho did not think ho could say much more. He knew nf tho promise though it was thought wise at that time to put in a proviso. Iho plans were complete, but no doubt some rearrangement would be made in such a building. He could not say more. If tho money wore available tho_ Post Office would be gone on with; if the money were not available ha would I e perfectly trank and give the reason, and tell them there would bo a postponement. For the moment ho was nnable_ to oi'e them any more assuring promise Mian ho had conveyed. In thnr king the Prime Minister for -e ceiving tho deputation, Mr Sidey said he was Mao to learn that, there had been no suspension ot preparation on the part of the Pubb? Works Department. SHIPPING FACILITIES. BETTER SERVICES WANTED. SOUTHERN DISADVANTAGES. The second matter brought before tho Prime Minister was tho peculiar disadvantages which the South Island, and particularly the southern portion of it, suiters from la;n of adequate shipping services. A SHIPPING COMPANY’S POWER. Mr H. C. Cum,.bull (president of the Chamber ol Commerce) reminded Mr Coates that a deputation had waited upon him in August last ucoul the same matter, but unfortunately there had been no iniprovement, though whilst the Prime Min ister was at Home he had had plenty ot opportunities of discussing matters. He considered that with the amount of money paid to the Union Steam Ship Company it should give a fair and reasonable service to all ports. Mr Coates had admitted that, the Union Company could make or break anv port. He pointed out that we only had an irregular three-weekly service, but Wellington and Auckland bad regular weekly' ones. They had boon told that the services did not pay. but he asked how it, was that another company with only one boat going between the Dominion and Australia was able to keep an. office staff in Auckland and another in Wellington. Giving an instance ot the inadequacy ot the serv’ce between Australia and this pa.it of the South Island, tho speaker referred to what he described ns the •‘terrible muddle” that resulted when the delegates to the Medical Conference canto hero. tl was hoped (hat our tourist resorts would havo received the best advertisement that they ever got. but unfortunately they had not done so. Ho had suggested to some of the doctors that thev should leave for Melbourne by Bluff, which would havo given them an opportunity of seeing our scenic attractions, but they had all told him that owing to tbo uncertainty of the service this could not bo dono. Tno oourn Island did not get any advertisement from nn-/ pn.n ; on"or service: it wa c > all Auckland and Wellington. The speaker expressed tbo hope that tho Union Company did net yet control the destinies of the country 'though he was afraid that this might happen. ’ He stressed that - a regular and better service would bo to the advantage of tho railways. It had been stated that the railways in the South Island did not pay but he would like to remind the Prime Minister that, tho cost of haulage over most of tho South Island lines was lower than elsewhere in the Dominion. Ho considered that the deputation was on titled lo a reasonable reply. ISLAND FRUIT WANTED. Mr F, U Reilly, representing iho bruit and Produce 'Brokers’ Association said that many years ago when the Union bteam Ship Company had nead office in Unn cd’n we had a very fine service running between here and Melbourne and Sydney and also to the Islands. He wished to speak chiefly now with regard to the pro-po-ed development of the Island tiado. He understood it wa, the Government, s intention to put on a steamer to serve the Islands and also to serve the bouth Island with fruit shipments Tears ago we had from Suva a regu.ar steamship service to Dunedin. Ye had very large quantities of bananas coming through here, and thev wore able to give a very fine (Utributfon to InvrrcargiM and as far north as Timaru The service was discontinued during the war, end since then it had been going from had to worse To-dav we were wholly dependant op fruit coming from Auckland or Wellington Auckland had a particularly good service Phe had the direct service from buva, and nrocMcallv Ihe whole of the Suva bananas were distributed from the Auckland market. to the south Unfortunately in many cases before thev received delivery of. the fluff her- it was in a hopeless, rendition owin', to detcrornbon. I hey had We,, known to receive fruit from Auckland in seven days but it was also a fact that it had ta'-en fruit Corn Am-Mond 21 days to reach Dunedin. That mig'-t seem almost unbelievable but it haooened three weeks a. Fruit which end them 19= in Auck land arrived in this market m a hopeless condition He thought he wn= quite safe b. savin'* that fruit coming through from Auckland to Dunedin deteriorated to the extent of at least 30 ner cent In some indances it was a total loss Fruit which rod jn the Islands 12s on an .average Ihroue-hont the rear cn=t in the Auckland markets about 19= If there was not ,a steamer coming on : f had to he railed, (erred and then railed again L- Bus market at a f--f of 8= fid a en«e That was a rather 'urge amount to -a>- for a rase of bananas which webd'-d VMb and con ♦ ab'e-t 7 nn bananas on the average -r h ■ ~,.n v. ,,.p ~o t 1 1. r— -mit the year wa= bdM to re'ni’e'-s Mlo'-inn a loss of a third 'he,, ■. mm ..-he .rid h!= han-nes P< otrrV „ Tiffin,, -ot OK- for a ca-e which netn aHv cost b : rn M. Tt wa= onlv right ~ 1-K„ „tm..ld l-.m..- I'm f.mW Tl, >ro.dd„ „-e s (he damaee .v tw l Iw the delav ill eomi'n" overland 'Che., realised thpt \nekland had verv fine services from Pvd any, from Vancouver an,l from the IMands. and her geographical position enabled her to taka advantage of these. Small blame

to her! Wellington had also very fino services from Sydney, San Francisco, ana Raratongal We in the south had. nothing. Everything must come through Wellington or through Auckland. When the Government spoke about putting on a steamer that was the only hope wo had. If tho Government wished to develop tho Islands of Samoa and to help tho South Island, then its opportunity was now to gi\e ns a direct service lo Dunedin. No other service would bo of any benefit. Some of the heads of tho Government had 'said that that would mean that instead of making the 12 trips a year to Auckland, they could only make 11 to tho South Island. Then, he said, make it 11. Was it not far better that we should have fruit landed in a marketable condition rather than to have it, brought to Auckland and railed and ferried and railed again to Dunedin, and deteriorate in the winter time in the south fully 80 per cent, owing to frost conditions? Bananas wore hard to carry and so were oranges, but under favourable conditions with a direct steamer service to Dunedin they could distribute to Gore and Invercargill and reach even as far ns Christchurch. He was speaking on behalf of the South Island Fruit and Produce Brokers’ Association. “Give us a service and allow ua to develop,” he concluded, “and the Government will fco doing a good, thing not only for the people of the Islands, but will bo helping tho South Island as well.” DEVELOPING ISLAND TRADE. Mr J. Hogg, president of tho Dunedin Manufacturers’ Association, said ho pro posed to refer .to a further aspect of the trade with tho Islands. When General Richardson was in Dunedin during the Exhibition ho mot representatives of tho manufacturing and commercial interests of the city and requested them to assist him ana the Government also in every way in their power to develop the trade between Western Samoa and tho Cook Islands group and the South Island both in imports oncl exports. The Prime Minister had heard what Mr Reilly had said regarding.the possibilities of tho fruit industry. They believed that if the South Island received direct steamer communication and the fruit arrived here fresh, that double or treble the iruit would be consumed. They also believed that the problem of back loading, referred lo by tho Hon. A. D. ADLcod, would be partly solved, because the South Island manufacturers were ready and anxious to develop the trade. They would go so far as to send a representative at their own expense to these islands to consider and develop trade possibilities. It they turned to consider tho figures for tho four groups—-tho Cook Islands, Samoa, Fiji, and the Tonga group, the importations to these four came to £832,090. Out of that New Zealand had received 45 per cent, of tho total trade. Auckland was receiving tho whole of the business being shipped for tho Cook Island group and 9U to 95 per cent, of tho trade of tlie other groups was going through Auckland. In view of that, what opportunity had Otago and Southland of getting a fair share in that trade? It was many years since wo had had direct communication with any of these Islands, and they said that the bouth Island was entitled to equal opportunities. They did not envy tho Auckland men. bm, they asked that now, when there was a possibility of giving them a direct service, that it bo accorded to them. Representatives of all tho bodies present had met tho Hon. A. D. APLcod when he was here two months ago, and discussed tho matter privately with him. They had since heart! that the itinerary of this new Government boat was settled, and that Auckland, Wellington, and Lyttelton would be included, and that Dunedin would bo again cut out. They did not know if that were true, but if it was so, they wished at. that stage to protest against Dunedin being again left out.—(‘‘Hear, hear.”) Wo paid our due share of taxes going to support these boat* and the southern districts contributed as much to tho carrying on of the country an any other part, and they wore entitled to duo consideration. If a direct steamer was run they would do their best, as keen business men, to see that a trade was developed. As an illustration ol wiry we should secure trade, ho quoted the case of Western Samoa, to which Australia sends a great deal of goods. Nevertheless, Australia bought only £760 from there, while New Zealand was taking £II,OOO worth ot produce. They hoped that this protest from Dunedin would bo regarded, and that fair consideration would l>e given them; for all they asked for was txjual opportunities. MR COATES IN REPLY. Tho Prime Minister, in replying, said ho would like to explain that there was aiu-olutelj no discourtesy meant to Mr Campbell b.y not replying to his letter. It was perfectly true that when he was in England he had the opportunity on many and various occasions of discussing with tlie management of the steam shipping companies the question of improved ser vices between Great Britain and New Zealand and also vvith Australia and New Zealand. lie thought that the basis ot the discussions centred round a fortnightly service, Alolbourne-Blutr-Dunedin, and so forth. Up to the time of leaving London, however, he might say that lie had accomplished nothing, for the reason that the facts as placed before him by the companies showed that tho service was not payable from their point of view. 'lho figures presented were being taken out with the object of endeavouring to show the other side, but he regretted _to say that up to the present the discussions had not le ; to anything at nil. nor was there any guarantee of an improvement in this particular trade In regard to tho Island question ho would bo very glad to discuss it with tho Minister of Industrie? ami Commerce and also with tho Minister of Internal Affairs, and go into tho matter of tho trade so far as the South Island was affected. Ho did not propose to discuss it any further in the meantime. They all knew tho history of the Island trade and how it had grown. Naturally enough Auckland had the greatest amount of trade with the Islands because they had business branches there, and also in tho Society Group. Ho agreed that, the matter was an important one, and one that concerned the whole of New Zealand, and the Government had deeded to set up a Parliament ary Committee as soon as tho House met with a view to taking evidence, and obtaining an idea what course should lie adopted in regard to tho South Island services generally in an endeavour to ascertain what is neces snry in tho future to improve tho services. The services between Australia and New Zealand could bo included in the investigations, He could not go into the discussions ho had had in England, because some of the information was confidential, beyond the statement made to him about the service.-, not paying, and until they had the figures from tho Parliamentary Committee the Government could make no definite state menl. As regarded the scheme of subsidy, he would hesitate to build up business by subsidies. When the facts were ascertained the Government would consider what was best to he done in the general interests of the country. —(Applause.) Air Sidey thanked the Prime Minister for tho assurance that the matter was going to be investigated. They only hoped that tho result of investigations by the Parliamentary Committee might lead to .something tangible in the way of better services for the South Island. PUBLIC SERVICE APPRECIATED. Tho Mayor (Mr H. L, Tapley, M.P.) said that as this was tho Prime Minister’s first visit to Dunedin since he had returned to New Zealand from tho Imperial Conference, he would like to extend to him a warm welcome. They all recognised the splendid manner in which ho had repre seated the Dominion at tho Conference.— (Appluse.) Air Coates, in replying, said he had dono his host at tho Conference, and it was very gratifying to know he had earned the appreciation of the people of Dunedin. PEAIBROKE DOAIAIN BOARD, Mr J. Horn, AI.P.. introduced a deputation from the Expansion League. Air W. B. Steel, secretary of the league, said that Pembroke Domain Board wanted an increased grant, either bv way of land rentals or by a sum from tho Consolidated Fund, towards assisting the hoard to further b-antify the rcenic attractions of Rake Wanaka. Mr '’oates; What can they do to improve Wanaka? Air Steel : Is it perfect now Sir? Air Coates: Pretty well, I should think. Air Steel; There is (he matter of improving iho approach to tho lake on tho island. Mr J Horn, AT P., said that some of (ho Islands that were hush-clad had been burned out, and they wanted (hern replanted, 'flion of course thev wanted landing? on some of the other islands. The Domain Boards total revenue wa- £’.B, and thev ■ou!d not do rn ’ch with that nicy were thankful for the three new jetties that had been had)- wanted, but still a little more •o Iff he done. Air Coates- | suppose we had hettc =ee • hat the Mitrster of the Tourist Department ran do. Air Horn said that Ihe Lands Department wa? also interested. | Mr Coates; Air William- and I will cer- j tainlv confer with the Tourist Minister ] and see wbnt funds it any, are available to a = ?i?t the Domain Board. 1