THE PACIFIC CABLE.

Timaru Herald, Volume CXXV, Issue 18355, 28 August 1929, Page 3

THE PACIFIC CABLE.

MERGER WITH MARCONI SYSTEM. PROTESTS IN HOUSE OF RE PRESENTATIV ES. By T*legrapb—a Aaaociatlon. WELLINGTON, August 27. The Pacific Cable Sale Authorisation Bill was also introduced by GovernorGeneral’s message, and considered in committee. The Hon. J. G. Coates asked whether the Bill conformed exactly with the terms to which New Zealand had agreed, and whether provision had been made for Pacific Cable Company employers in New Zealand. Mr H. E. Holland (Buffer), asked what would be the consequence if New Zealand refused to sanction the merger. The undertaking had been made without reference to Parliament, and now a Biff was submitted to the House. It seemed to him that this course might have been taken before New Zealand bed ever been committed. Sir Joseph Ward said the Biff provided for such ratification as was necessary on the part of New Zealand The position was that a merger had been agreed to by other parties, including Britain, the principal shareholders. Personally he was not in favour of the merger, but when it had been reported to the House it had been too late ot do anything of a practical nature by means of protest. Mr Coates said it was purely as a result of the combined recommendation of representatives of all partner's in the cable that New Zealand hail taken action.

Sir Joseph Ward said it was no use looking back at the transaction now, but he had his opinion that the British Government, as it exercised majority control over the team system, and was the principal partner in the cable, should have compelled the Marconis to Join in with its organisation. In his opinion it had made a great mistake. New Zealand had lost its identity, and would probably never again have opportunity of securing part-ownership of a cable service to Britain and Canada.

Mr P. Fraser (Wellington), said that alj the House was expected to do was to give its formal assent. It would have been a foregone conclusion that the last Parliament would have adopted the recommendations if the Government had approved of them, but even so it would have given those membei of the House that disapproved an opportunity to express doubt as to the wisdom of the transaction. The present Labour Government in Britain would have opposed it, and so would the present Government in New Zealand. That being so, Canada, Australia and South Africa would probablv have been persuaded to hold out. It was very unfortunate that the step had been taken, but nothing could be done now. Mr Coates said the British Government might have controlled the beam system so far as the Empire was co.i cerned, but at the time the merger was arranged there was danger of a combination cf the Eastern and wireless systems. Figures showed a faffing off in business of both cable companies, including the Pacific, and this meant that some organisation would have to be formed to bring into line the wireless and cable services. The real point was whether the partner Governments were prepared to carry on, incurring losses. Power had been retained to convert the whole combination to the service of the Empire in the event of war or a world-wide disturbance. New Zealand was placed in the position that it had to agree either to bear the whole of losses of the cable, or to subscribe to the arrangement foi combination.

Sir Joseph Ward said that if the British Government had taken a stand none of the other partners in the Pacific Cable would have insisted on the merger, and no other organisation would have been able to beat a combination of this cable and the beam. He considered that the British Government had made a big mistake. He added that at the time the arrangement was made it was not so much a case of the Pacific Cable Company losing money, as it was of other companies losing money through competition of the Pacific Cable. Mr H. E. Holland (Buffer), said he agreed with the Prime Minister that the merger had not been a wise arrangement. “Our lines of interEmpire communications have been handed over to one of the most powerful combines that the world has know'll,” he said, “and now one of the most sinister figures in British history. Lord Birkenhead, is at the head of this combine at an enormous salary.” It was true, Mr Holland added, that the Tory Governments had given consent to the merger, but he was satisfied that had the voice of the peoples of the partner countries been consulted it would have gone against, what had been done. If a private company could carry on the organisation without loss, the Government should havebeen able to carry on with combined system and obviate loss. It could have conducted the organisation even morn satisfactorily, as it would have acted primarily in the interests of the people. The Hon J. B. Donald, replying to a point raised by Mr Coates, said tluu nothing had yet been done in the matter of making provision for Pacific Cable employees in New' Zealand, but the subject was under consideration. The Biff was then reported to the House, and read a first time.