BLUFF-MELBOURNE SERVICE.

Otago Witness, Issue 3994, 30 September 1930, Page 8

BLUFF-MELBOURNE SERVICE.

THE SUBSIDY CONTROVERSY.

VIEWS OF CANTERBURY FARMERS

CHRISTCHURCH, September 24. Though they were unwilling to decide on definite action without the fullest investigation members of the executive of the North Canterbury Farmers’ Union to-day affirmed their previously expressed opinion that the Government subsidy on the Bluff-Melbourne steamer service should be discontinued. They held that it was Australia who should pay, be cause the trade balance was all in her favour, and that the Commonwealth was closed to many New Zealand products One member said that every ton of cargo exported by that service cost the country £1 in addition to freight charges. The chairman (Mr Colin MTntosh) explained that he had received a letter from the secretary of the Southland Executive of the union, which showed that the bal ance of trade was against New Zealand. The outward cargo was in the ratio of 6000 to 10,000. The Dominion was not getting value for its subsidy. Australia was getting it all and that country should pay. Mr R. T. M'Millan said he felt that we in New Zealand were really paying a subsidy on goods imported into the country instead of on those going out. “It seems that we want the service without having to pay the subsidy,” he added. ■ The chairman: I think we should sup port Southland. Representations from other bodies have not induced that union to change its view. Australia is anxious to see the service continue, so that they can get their fruit in, but what reciprocity are we getting? Mr G. C. Warren: It seems that much of the goods imported by that service is in direct competition with the produce of our own country.

It was stated that cargoes were largely composed of fruit and timber. Mr T. Thompson: I am in favour of supporting Southland. We are a farmers’ union, not a chamber 'of commerce.

Members thereupon inquired whether the Canterbury Chamber of Commerce had expressed an opinion. They did not want the farmers pulling one way and the commercial men another.

Air J. Roy Smith, secretary of the chamber, who attended the meeting at this stage by invitation, said the Canterbury Chamber had not come to a decision. They were waiting till they had discussed the question with the Dunedin representatives at the Dominion conference next month. Much depended on trade agreements with Australia being fixed, and whether the embargo on potatoes. for example, would be removed. Air W. W. Mulholland: We might use the subsidy as a lever to prise open Australian ports to our produce. The con tinuance of the subsidy means that in addition to freight* we pay £1 a ton for all goods we export by that service. Mr Smith asked whether the service would continue if th e subsidy wer e removed. It was well known, he said, that even now the service did not pay the Union Company. The Finance Committee was deputed to obtain all the information possible and to report to the executive.