MELBOURNE-BLUFF SERVICE.

Taranaki Daily News, 12 November 1929, Page 8

MELBOURNE-BLUFF SERVICE.

The subsidy that is to be paid for the steamer service between the South Island and Melbourne is a large one. Some indication of this was given by the Prime . Minister when announcing that arrangements had been made, but .it is safe to say that tire actual amount ( £30,000) would come as an unpleasant surprise to most of New Zealand. For the San Francisco service a subsidy of £20,000 is paid, and for the Vancouver one of £25,000. Tn these services modern steamers are engaged, and-the passengers, mail and cargo traffic is constantly developing. For the southern service the country is to pay four-fifths of the cost of the two American services for the Tunning of an old-time steamer — the Maheno—between southern ports and Melbourne during seven months of the year. A very considerable expansion of trade will be necessary if the expenditure is to be justified. To representations upon the matter the Union Steam Ship Company asserted that the service maintained by the Manuka and two cargo steamers, though not frequent, was sufficient for all the traffic offering. The magnitude of the subsidy demanded makes it evident that the company is still of the opinion that if the service is required it must be paid for by the community, for there is little hope of it becoming self-supporting. It is true, of course, that the establishment of the service will mean a certain amount of expenditure from which southern ports of call will benefit, but the net result is an additional burden for the taxpayer to shoulder.