INTERCOLONIAL TRADE.

Otago Witness, Issue 3889, 25 September 1928, Page 7

INTERCOLONIAL TRADE.

CONFERENCE IN DUNEDIN. GOVERNMENT TO BE APPROACHED. On Tuesday evening a conference was held in the Chamber of Commerce rooms, Dunedin, to give further consideration to the question of steamer communication between the South Island and Victoria and Tasmania. The executive of th-> Dunedin Chamber of Commerce, as the moving party in the matter, had ' issued invita tions to representatives of harbour boards, chambers of commerce, progress loa'nies. and other bodies in centres from Christchurch to Invercargill. There were present—Messrs E. A. Rosevear, A. H. Allen, J. Taylor, J. Park, T. C. Ross, H. C. Campbell, S. P. Cameron, A. C. Cameron (Dunedin Chamber of Commerce), W. Gow, R. Cuddie (Dunedin Importers and Shippers’ Association), W. B. Steel, G. J. Errington (Otago Expansion League). A. l e H. Hoyles R Strong (Invercargill Chamber of Commerce}, R. Galbraith (chairman Lyttelton Harbour Board), C. H. Clibborn (representing Lyttelton Harbour Board. Canterbury Chamber of Commerce »’■-! Canterbury Progress League), H. E. Moller (chairman, Otago Harbour Board), W Hinchey (Southland Progress Lennie; A. H. Aitken (Bluff Harbour Board nn 1 Gore Chamber of Commerce), J. S. Dick (Southland League), and James Begg (Sheepowners of Otago and Southland) Apologies for non-attendance were received from Messrs Alexander (nresid'mt. Southland Progress League), Reid (president, Invercargill Chamber of Commerce). Dawson (Timaru Harbour Board), and Francis (Canterbury Chamber of Com merce)

The chairman welcomed the delegates. In introducing the business, he said that prior to the war the South Island ports of New Zealand were satisfactorily and efficiently served by a weekly service between Melbourne. Hobart, Bluff Dun edin, Lyttelton, and Wellington, and vice versa. This service was discontinued on the outbreak of the war in 1914. «nd it was then understood that the service was to be reinstated after the close of the war. So far this _ had not been done, notwithstanding many appeals made Jo the Union Steam Ship Company. Instead an irregular service about every three weeks bad been running, but thi_§ had been found to be.very unsatisfactory owing to Jthe uncertainty of days and hours of sailing. Further, the one steamer in use compared unfavourably with steamers on other intercolonial routes, and _ this militated against the present service. Owing to the necessity for the annual overhaul, the s.s. Manuka was withdrawn, and not replaced, and in reply to the Dunedin Chamber’s protest the company advised that the service would be maintained by cargo steamers. In consequence of the pre sent irregular and infrequent service between Melbourne and the South Island, the people in this island were seriously handicapped. They desired to be placed on an equal footing with their'friends in the North Island, who had the benefit of two subsidised mail services, to which residents in the south contributed. The advantage derived from these subsidised services was reaped almost entirely at present by the north, as invariably visitors stated that they had not time to come south, which would mean doubling back on their route. The ideal service would be one that would enable visitors or others to come in at one end of New Zealand and to go out at the other, which could not be done until regular and frequent communication with Australia, via the south, such as they were ressing for, was re-established. All efforts to reinstate the regular service had been fruitless. While other chambers of commerce with the Dunedin chamber had been working towards this end, no united effort as yet had been made. At the invitation of the Invercargill Chamber two members of the Dunedin Chamber visited Invercargill some weeks ago, and after a conference with representatives of the Gore R'nd Invercargill Chambers of Commerce, the Southland League, and he Bluff Harbour Board, it was decided'to hold a conference in Dunedin of all South Island chambers of commerce, progress leagues, harbour boards, and other public bodies. The objective was to obtain unanimity in whatever action was taken, and to pre- . sent adequately the case for the reinstatement of the pre-war service between Australia and the South Island. It was felt that with such strong representation as they had at the present conference, the deliberations would result in a line of action _ that would -.impress upon the Authorities their determination to Der-

severe until such time as their objec’ was attained. The chairman also read a letter received by the Dunedin Chamber from the Hobart Chamber, in which the president of that body said that his chamber would do all it could to get a service to the South Island of New Zealand restarted. The conference was then opened for discussion. Mr Gow said he did not think that he need stress the necessity for the re-estab-iishment of the service, for the want of which the whole of the South Island was suffering. It was advisable, however, before a remedy was proposed, that the difficulties should be considered. At a conference which had been held at Wellington the Union Company had stated that if it gave a weekly service with the type of steamer which was now required it would lose £lOO,OOO a year. He did not know how that figure had been arrived at. The possibility of a successful service could not be considered unless a very different type of steamer from those used before the war was employed. The larger class of steamer would mean greater expense. All these difficulties, however, should be faced. Another difficulty was that the Australian navigation laws had a deplorably bad effect. It was not permissible for any ship not registered in Australia to carry passengers to ports within the Commonwealth. The benefits of the previous service had been derived largely from connection with Tasmania, and that had been an important element in making the service pay That trade was at present impossible unless the Australian Government could be induced to exempt the ships on the service from the operations of the law to which he had referred. Owing to the tariffs in Australia the export of oats from Southland had been lost. That trade had been a large element in the success of the former service. Another difficulty was the tendency of the Union Company to make its policy centralised. It desired to restrict the ferry service to Sydney, Melbourne, and Wellington, the idea being that it could use large boats which could be made to pay. They must set themselves against that policy if they could. They must see that they obtained a service with ships of a satisfactory character to keep the service going. There were other difficulties too, but those to which he had referred had been mentioned for the purpose of discussion. It was only right that when a remedy was being sought some of the difficulties should be made known. Mr Allen said there was no necessity to stress the need of a service that was enjoyed some years ago, and was cancelled shortly after the outbreak' of the war. He had pleasure in submitting the fol lowing motion:—With a view to the proper development of the South Island as regards its commercial interests, mail services, and its overseas tourist traffic, this conference is decidedly of the opinion that this can be secured only when adequate passenger and cargo steamer connections with Melbourne and South Island ports, via Bluff, are provided, and recommends: (1) That the Union Steam Ship Company be urged to reinstate the former excellent service, known as the horseshoe service. (2) That the Government of New Zealand be urged to grant such subsidy as may be necessary for the establishment of that service. (‘3 That the Government of New Zealand place our views fully before the Federal Government of Australia, the Government of Victoria, and the Government of Tasmania, with a request that each' of these Governments assist by also granting subsidies. (4) That the Government of New Zealand urge upon the Federal Government of Australia the necessity for exempting from the Australian Navigation Act passenger steamers carrying cargo calling at Tasmania en route to and from New Zealand.

In support of • the motion, Mr Allen said that in the pre-war days there was a considerable transhipment of cargo at Melbourne for New Zealand. This trade had been allowed to drift. It would not have been as bad as it was to-day if the Union Company had continued the old service from Melbourne to Bluff, but- unfortunately the company had concentre, tea' on Sydney, so that New Zealand cargo was now carried past Melbourne to Sydney, on to Wellington,- and then down the coast. If the Union Company could be urged to arrange with the overseas carrying companies again to discharge cargoes at Melbourne the cargo for the South Island 'ports of New Zealand could be transhipped at Melbourne and sent here by way of the Bluff. By such a method there would be only one transhipment, which would mean a cheapening of distribution costs. The Union Company, however, would not support the service that the Dunedin Chamber was looking for, because it would act as a draw-off from the Sydney-Wellington service. He admitted that if tha loss was to be such

as Mr Gow had stated it would be unreasonable to expect the company to de what a private individual would not do. and if the service could not he m de to ■'■ay it should be subsidised. A subsidj would not be a total loss to the Government, because a larger number of people in our-midst would mean an increased use of the Government services—railways, tourist resorts, and so on. Mr Allen also pointed out that already two services in the North Island were subsidised by the Government—the Vancouver and _San Francisco routes. Mr Taylor, who seconded the motion, s'ated that if a better class of boat 'ere run on the proposed service passengers would travel by that route. Mr Clibbourne said that, as business men, they were entitled to consider the attitude of the Union Company towards its business. If they could ask the two Australian Governments concerned to contribute with the New Zealand Government in the payment of a subsidy it would be getting near the mark. The Canterbury Chamber of Commerce was wholeheartedly behind the effort if a reasonable subsidy could be procured, but it was against-the proposal that the New Zealand Government should be asked for the whole of the subsidy. The Canterbury Progress League was also in favour of the proposal. It was doing its best with other progress leagues in an attempt to foster tourist trade. Unfortunately, when tourists came south they were bl eked, and had to go back to Wellington to continue their journey to Australia. The conference should look at the question from another angle—the basic causes of the present state of affairs. A few years ago there were no.tariff walls, which at present Australia and New Zealand were building up against each other. If the conference would face the question of tariff first there wou’d be a greater -chance of commending the propose! „ the mind of the meeting. It was almos* useless to press for a service without overhauling tariffs and encouraging trade. Mr Hoyles said they ought to look at the matter from a common-sense point of view. He believed if the.v asked for the reinstatement of the old horseshoe service they would be turned down flat. The Union Company would never reinstate it. one reason being that there was not the cargo offering at present. As they all knew, there was an excellent direct service from the Old Country to. New Zealand. which was not available in early days. It had to be remembered, too, that the expenses the comnany incurred to-day were much heavier than in the old days, because when a stermer reached a port it was not known positively when it would leave again. This was an important point from the company’s viewpoint. He thought the utmost they could do was to urge the Union Company to put on a more regular service, and then apply to the Government to subsidise it. A subsidy was their due right, because it was proper that they should get something of the kind that the North Island was getting in that respect. Mr Strang said they all knew that the cargo and passengers offering for a service from the South Island to Melbourne had dwindled away to a low ebb. and the only way to make it pay-was to get a subsidy from the Government. The leagues and other bodies in the South Island, also in Victoria, should do their utmost to see that such a service, if granted, was used, and as much publicity as possible should be given to it The Tourist Department should also be approached and asked to give greater publicity 7 to th° tourist resorts of th n South Island. The Invercargill Chamber of Commerce would do its utmost to act with other chambers. This was "not a North Island v. South Island matter. The North Island must be served, and it was not over-seryed at present, but the South Island required a better service, than it was getting to-day. Mr Hinchey said that it was not possible to revive the horseshoe service. The indications were that the Union Company had set itself out to build up a terry service between Auckland, Wellington, and Australia.' At present it was i making people in the’south go to Wellington first if they wanted to visit Australia. A sufficient number of people had left for the Eucharistic Congress in Sydney to justify the company in running a boat from Bluff. It was expected that the company Would revive the service if a subsidy were provided, but in view of the fact that it did not. want to run a boat it would probably require a subsidy so large that it would not be possible for anybody to pay it. The market for oats and the passenger trade had gone, and a new trade must be built up. If people knew that the boat was running he had no, doubt that the trade would come. The' Union Company had used the argument that the trip from Bluff to Australia wad rougher than that

from Wellington, but he had been assured by seafaring men that that was not true. They were entirely in the hands of the union Company. This part of New Zealand was not being taken into consideration as the communities were small. A shipping commission had been set up to consider the question of reviving the service, but in view of the report of the Union Company, it had not given the question of granting a subsidy a hearing, lhe same treatment would be given on this occasion. He had put forward a proposal that the people should find a certain amount of money themselves. Perhaps he was too ambitious, but he was convinced that they must help themselves. He had a feeling that if the local bodies could find a proportion of the money they would have a good lever to obtain Government support. If they wanted Government support they must send up a “ hefty ’’ deputation to Wellington. A voice: This is election year. Mr Hinchey: All the more reason that it should go to Wellington. Mr Allen said that it was intended that a deputation should approach the Government. Mr Hinchey pointed out that North Island people argued that the subsidy for the boat on the Vancouver run benefited the whole of New Zealand. This remark was greeted with cries of “ No,” Mr Steel pointing out that South Island merchants had to pay freight from the North Island.

Mr A. C. Cameron quoted articles that might be sent to Australia frn m the South Island, such as butter, cheese, pelts, and other goods. Further, there was a growing trade in tallow with India, and the bulk of that business went to the North Island because of inadequate shipping facilities from the South Island. The bacon trade was increasing with Australia, and the South Island would get a portion of that trade if the shipping facilities were suitable. Mr Allen replied to a number of- statements, and urged that it was the old passenger-cargo service he wanted reinstated. In answer to a question, Mr Allen said the horseshoe service he referred to was this: Melbourne, Hobart, Bluff, Dunedin, Lyttelton, Wellington, and return. It was decided to take the motion clause by clause. After a discussion, clause 1 was altered to read: “ That the Government be asked to approach the Union S.S. Company, or some other company, to establish a regular and more frequent service between Melbourne, Hobart, Bluff, Dunedin, Lyttelton, and Wellington, and return.” Clauses 2,3, and 4 were carried, as above. ' It was decided that the South Island delegates attending the conference of chambers of commerce in Wellington on October 12, together with representatives of other bodies who might find it convenient to be present, should carry the resolutions to the Government. It was resolved that a representative of each body at the conference that night should ask candidates for Parliament at the forthcoming election if they are prepared to support in the House-a'resolu-tion in favour of the service now being asked for. Mr Strang moved that the deputation approach the Tourist Department asking it to give the motion which had been carried its support. It had already been pointed out, he stated, that the Government would approach its departments, asking for reports on the matter, and the conference should be sure of the support of the Tourist Department. He also moved that the department be asked to give greater publicity to the scenic resorts of the South Island. The chambers of commerce and progress leagues should communicate with the corresponding bodies in Hobart and Melbourne, so that they could-ask their Governments to support the proposals. Mr Galbraith seconded the motions. Mr Errington said that he had interviewed the tourist agents in the Australian cities, and they had stated that they were waiting for a better service, so that they could send people to the South Island. . , The motions were carried. A motion proposed by Mr Allen that the motions previously carried and newspaper reports of the meeting be sent to the Melbourne and Hobart chambers of commerce with a request for their' support was carried. Mr Campbell referred to transhipments from Melbourne, and stated that merchants must try to stimulate business between the Victorian capital and the South Island. " At the conclusion of the conference the delegates were entertained at supper at the Savoy by the Dunedin Chamber of Commerce*