A SOUTH TASMAN SERVICE

Otago Daily Times, Issue 23558, 22 July 1938, Page 8

A SOUTH TASMAN SERVICE

It was an impressive deputation, both in point of numbers and in its representation of the civic interests of the South Island and of Wellington, which approached members of the Cabinet yesterday to urge Government assistance for a direct steamer service with Melbourne. Every argument which was advanced by the spokesmen was sound and commendable, and it did not exclude the admission that the crux of the whole matter is finance. There can be no question that a steamer connection between Melbourne and South Island ports would be of considerable convenience to shippers and to the public. It would, as has been demonstrated, assist considerably in encouraging tourists to visit the South Island, and would permit southern residents in New Zealand to reciprocate by travelling to Australia more easily and inexpensively than they are able to do at present. Apparently the experience of the Union Steam Ship Company in con-

ducting a seasonable service on this route has been far from financially encouraging. A loss of £40,000 or more would, it is suggested, be incurred on a service of sixteen trips in the course of a year. The results of a seasonal service hardly seem to us to convey an accurate indication of the results that would accrue from a continuous service. A trade cannot be built up on a service of which there is no promise of permanence. Much, naturally, is made of the fact that in former years a regular Melbourne-South Island service was maintained, and was plainly successful. But it has to be recognised that changed conditions have affected the commercial success of the service. South Island exports of primary produce to Australia have fallen away, owing to high tariffs, embargoes and other factors. The development of the direct cargo services between Great Britain and New Zealand has reduced transhipments from Australia, and tariff protection against goods manufactured in the Commonwealth must inevitably reduce New Zealand imports from the neighbouring Dominion. That the potentialities of a renewed service cannot be adequately exploited with a vessel which is old, and presumably expensive to maintain in the running, must be conceded. It is quite possible that with a modern vessel, offering excellent accommodation for passengers and affording expedition to shippers, a service between the South Island and Australia would justify itself. Unfortunately, however, the provision of such a vessel would have to precede the testing of its capacity to stimulate the trade. The Government, generous as it has been in its expenditures in many directions, is unlikely to provide such a vessel. The public bodies represented on the deputation probably—with the possible exception of the Bluff Harbour Board—have not funds to divert to this purpose, and it seems obvious that no shipping company is prepared to make the venture without some assurance of financial assistance, such as that which the deputation sought from the Government.