D—No. 2

An objection lo the time table as now arranged may be taken on the ground that the three Inter-Provincial services divide the month unevenly, and that the inequality of the intervals is very marked t.t some p rrts. This is unavoidably the case; the time of departure of each boat from some terminus is fixed, not arbitrarily, but by the European mail dates; and in some cases a packet hurrying from port to port with the mail treads at last closely on tbe heels of the preceding one. Except perhaps in general outline the present service cannot be looked upon as final. A marked improvement might be effected by transferring the boat which leaves Manukau on the 10th of the month for the South, to the East Coast if the North Island; and adding a fourth monthly boat to leave the Manakau about the 17th. 1 his would be found to give Hawkes Bay the proper time for replying to English correspondence, and would also cause the Sydney and Cook Straits boat to work more in harmony with the Inter-Provincial service than is at present the case. The last special feature of importance in the service is one upon which the Post Office of the Colony must be content with making a suggestion. In the adjustment of the subsidies payable for the service an arrangement is submitted as harmonizing with tbe principles which have governed the consu'uction of the service itself. Its adoption would provide that, as som2 of the provinces are, while others are not, supplied with direct communication with Australia, those which eiyjoy the advantage should alone contribute to its expense, and the less wealthy provinces should be released from the burden. The arrangement proposed is described in the following table, which exhibits the whole cost of the seivice and its.proposed distribution. It will be necessary to exclude the Port Chalmers and Melbourne services, which the Province of Otago has undertaken to provide and pay for, and the permanent cost of which is not yet ascertained. Service Total Cost. Sydney and Auckland ----- £14,00.) •'' • Nelson and Wellington (conditional) - - 5,000 Inter-Provincial Service (I.C.R.M. Co.) - - 8,000 Two extra, do. do. 12,000 Canterbury and Melbourne - 3,000 Total ------ £42,000 This sum it is proposed to divide as follows :— Imperial contribution ----- £14,000 Province of Auckland ----- 3,000 " " Canterbury ----- 2,000 " - Wellington ----- 1,500 " " Nelson - 1,500 Colony ------- 20,000 £42,000 The Provinces of Taranaki, Hawkes Bay, Marlborough, and Southland, which are not visited by direct steamers from an Australian port would pay no special contribution. THE INTER-COLONIAL STEAM PACKET COMPANY. The alteration of the route of the Inter-Colonial Steam Packet Company's principal contract steamer by the substitution of Auckland for Nelson, has been attended with a not unimportant effect upon the relations between the Company and the Colony. In place of taking full advantage of the clause in the contract which enables the Government to alter the ports of arrival and departure as they please, a provision which might be made to bear very harshly on the contractors, a mileage rate has been adopted as the basis for calculating the subsidy payable for the distance performed on the principal services. This rate is fixed for tbe present at 8s. per mile, the same which has virtually been paid since the alteration of the contract in 18D9. Should the Sydney and Cook Straits service fail to be carried out as proposed, the total amount of subsidy payable to the Company will be reduced to £22,000 per annum, which is the amount payable under the contract from the end of the current year. The postal service of the past year has been performed by the Inter-Colonial Steam Packet ' Company with very creditable punctuality upon the whole. The condition of tlie ships and of the accommodation afforded to passengers (though not within the control of this deparlment), at first gave rise to remonstrances and to lengthened correspondence with the Company, and it is gratifying to be able to report a marked improvement in this respect since last year. A practical step was taken towards remedying some of the defects complained of, by appointing an Inspector of Mail Steamers, to perform the duties of survey which had been contemplated in the contract. This step, which had been for some time in contemplation and arrangements for which had been previously made, was carried into effect in October 1861, and has been attended with marked success. The Company, through their representative and general manager in the Colonies, have on their part shown themselves anxious to meet the wishes of the Government and the requirements of the public, and have been actively engaged during several months in improving the steamers of their fleet in speed and accommodation, and in making them generally as fit for the service as the vessels are capable of becoming. Though the Company have not been able to extend their operations so as to perform all the work i at present required by the Post office, they have intimated their intention to increase the number of

Objections.

Adjustment of expense.

Mileage rate of Eubsidy.

Performance of service.

Inspection of steamers.

Improveme t in boats.

Increase of fleet.

7

THE POSTAL SERVICE OF NEW ZEALAND.