MATSON LINE

Wanganui Chronicle, Volume 79, Issue 85, 9 April 1936, Page 7

MATSON LINE

GOVERNMENT ACTION MEETING COMPETITION OUTLINE OF PROPOSALS W EI >LJLN G TON, Ap; il 8. An indication of the Government’s policy in connection with meeting competition from subsidised shipping jn ihe Pacific was given by t'he Hon. Al. lagan (.Leader of tne Legislative Council), when speaking in the Address-in-lvcply debate in the Legislative 'Council yesterday afternoon. Air. Fagan said that the Government regarded the question of subsidised shipping competition as a very serious one. Indeed, it was one of the most important questions facing the Dominion at tire present time. The British line had pioneered the service to San Francisco 26 year» ago, and had developed the country. There were about 600 persons employed on the British line ships, and the majority were married men with homes in New Zealand. It would be a serious thing if those people lost their employment and became a charge on the Unemployment Fund. Nor was it desired to sec a British line chased off the seas simply because the subsidy offered to the Matson Line wag too big to cope with. 1 do not say that we can put up a £ for £ subsidy and compete with the United States of America in its endeavour to keep its ships on the sea, but the Government will do all that is humanly possible to assist in keeping the British-owned line on the waters of the Pacific, said Air. Fagan. Basis of Subsidy Air. Fagan said that negotiations were now proceeding with Great Britain, Australia and Aew Zealand and if New Zealand was to contribute its share of the subsidy with the other two countries, the subsidy would not have to be based on the old idea of tramp ships or of other inferior ships. It was realised that the public would travel on the best boats, and if it was hoped to compete with the Alatson Line, steamers equal to, if not superior to, the Mariposa, Alonterey and Lurline would have to be placed in coin mission. “If the subsidies are granted —and I believe they will lie given—a condition will be that the British-owned line will have to be put on the run two steamers costing net less than £1,000,000, so that each will be able to compete with the Alatson steamers in the matter of comfort to passengers,” said Air. Fagan. “I can assure the Council that the Government will do- everything in its power to ensure that the British-owned line of steamers is kept on tne Pacific.” International Question Air. Fagan recalled that the matter was discussed at the Parliamentary Association conference in Lo-ndon last year, but at that time neither New Zealand nor Australia could do anything because t-he question was an international one. The American authorities would not let New Zealand ships trade between American ports, yet the American ships insisted on picking up passengers and cargo for transport between Suva, Auckland and Sydney. “Although we would have liked to have exercised our rights in t-he matter, we had tc- consult the British Government because the question was an international one. The American authorities would not let New Zealand ships trade between American ports, yet the American ships insisted on picking up passengers and cargo for transport between Suva, Auckland and Sydney. “Although we would have liked to have exercised our rights in the matter, we had to consult the British Government because the question was an international one,” said .Mr. Fagan. “We have been successful in having certain difficulties removed, and the way is now open for Mew Zealand, Australia and Great. Britain to take steps that will, 1 feel, make for more even competition between tfhat heavily subsidised line —the Matson Line —and the British line to which I have referred. ■’ ‘ BASIS REACHED LONDON DISCUSSIONS FORMIDABLE OBSTACLE LONDON, April 7. The visiting Australian Ministers met the prcsiileiit of the Board . ot Trade Mr. Eunciman the Dominions .Secretary, Mr. Makmm ALacDonald, and the Canadian :S'.d New Zealand High Commissioners, with their respective experts, ami agreed upon a basis tor discussion of the I’aeilic siiipping situation when they meet again alter Easier, in order to obviate each country putting forward separate plans. The Associated Press understands that inaugural Anglo-Dominion con sulfations on Pacific shipping revealed that tHro British Government is likely to be the most formidable obstacle te an agreement to maintain the services with inter-Governmcntal aid. Air. liuneinian s non-committal atlo tude is dictated by fear either of a counter-subsidy or the reservation of certain routes’to British shipping, r.m. produce American retaliation m tb-J Pacific or elsewhere. This, with the addition of Air. Runciman’s and the Government’s reluctance to broaden the principle, of subsidies means that no- solutionjs yet apparent.