MAIL SERVICES..

Wairarapa Daily Times, Volume XXIX, Issue 8277, 19 October 1905, Page 5

MAIL SERVICES..

The Vancouver Contract.

(Received Last Night, at 11.2 p.m.)

Melbourne, Yesterday,

In the House of Representatives, to-night, Mr Austin Chapman, Postmaster-General, moved the extension of the Vancouver mail contract to July 31st, 1906, with a proviso that if neither party gives not less than three months' notice of termination prior to the latter date, the contract to continue until July 31st, 1907. The amount of subsidy payable by the Commonwealth to be an annual rate of £23,863 from May to the end of July, and a rate of £26,626 from August, the difference between the two amounts being the Commonwealth's proportion of the total increase of £6000.

Mr Chapman stated that the New Zealand Postmaster-General had recently announced that his Government was willing to pay a subsidy of £20,000 if the Vancouver steamers called there instead of at Brisbane, and the company was willing in that case to reduce the Commonwealth's subsidy to £20,000 for ten years.

From a purely postal point of view, continued Mr Chapman, the Commonwealth was paying about £23,000 more than it cost to send mails at poundage rates. It was, to a large extont, a trade subsidy. Unfortunately, trade between Canada and Australia was decreasing, and under the new contract there would be no improvement in speed, and no change except the increased subsidy. From a postal point of view the lino was of very little value, but as it was an all-red route, there naturally was sentiment in favour of retaining and keeping up inter-communication with other parts of the Empire. The trade value of the service, said MiChapman, had proved disappointing, but with larger steamers, better facilities, and higher speed, great developments might take place. Mr AVatson thought, in view of the falling trade, it was very doubtful whether the service should be continued. The present subsidy was practically equal to a £ for £ subsidy on the value of Australia's exports to Canada. The matter called for serious investigation. Mr Knox and Mr J. Cook urged the Government to make efforts to increase trade with Canada.

The motion was adopted on the voices