PACIFIC SHIPPING

Poverty Bay Herald, Volume LXIII, Issue 18987, 11 April 1936, Page 4

PACIFIC SHIPPING

SUBSIDY PROBLEM A MERIC A N COM PETITION EMPIRE ACTION LIKELY Reference to the competition of foreign subsidised shipping in the Pacific was made by tile Jreader of the Legislative Council,' Hon. M- Fagan, during the Address-in-Reply debate. “In seconding the motion the Hon. 1. F. Doyle discussed the question of subsidised shipping, and was referring, of course, to the Matson Line, said Mi. Fagan. “The question is contentious and is one of the most important lacing the Dominion at present. Here we have a llritish-owned line which pioneered a service to San Francisco 26 veais ago and has done a tremendous amount in helping to develop our country. It would be a serious thing if the 600 men employed on the run to the Pacific coast by this British line lost their employment and became a charge on the unemployment fund. NEC OTIATIONS PROCEEDING “Nor do we wish to see a British line of steamers driven off the Pacific Ocean simply because the subsidy ottered to the Matson L:.ie :s too big to cope with. I do not say we can put up a pound for pound subsidy and compete with the United States in its endeavour to keep its ships on the sea, but the Government will do all that is humanly possible to assist in keening the Britishowned line on the Pacific.’’

Mr. Fagan added that negotiations were now proceeding between Great Britain, Australia and New Zealand. If the Dominion was to contribute its share of the subsidy along with the other countries mentioned the subsidy would not have to be based on the old idea ot tramp ships or oilier inferior vessels. The Government fully realised that the public would travel in the best ships and if the British line hoped to compete with the Matson Line it would have to place in commission steamers equal if not superior to sucli ships as the Mariposa and Monterey. Those Matson liners were certainly getting the trade now'. STEAMERS COSTING £1,000,000 “If the subsidies are granted,” said Mr. Fagan, “and I believe they will be given, a condition will be that the British-owned line will have to put on tho run two steamers costing hot less than £1,000,000 each in order that they may be able to compete with the Matson vessels in comfort to passengers. Only last year a conference of the British Parliamentary Association, attended by the Hon. P. Fraser and myself, took olace in London and this question was discussed. At that time neither Aus trnlia nor New Zealand could do anything because the problem was international.

“We have been successful in having "ertain difficulties removed and the way is now open for New Zealand, Australia and Great Britain to take steps that will make for more equal competition between the Matson Line and the British line to which I have referred.”