E.—No. 41
The Select Committee appointed "to inquire into the subject of connecting New Zealand, by Submarine Electric Cable, with other countries," beg to report, — That they have taken into consideration the several means by which a Cable connection with Australia might be established ; and that they have also considered a special offer made by Mr. Blackett, on behalf of the Telegraph Construction and Maintenance Company, and an offer which was sent out, through the Commissioners, by Messrs. Henley and Co. The Committee were not able to recommend that the offer submitted by Mr. Blackett' should be accepted. Whilst recognizing that it is most desirable to connect New Zealand with Australia by Electric Cable —especially seeing that Australia is likely soon to be connected with Great Britain—the Committee agree that it is not desirable that an absolute money cost should be imposed upon the Colony, as a consequence of securing that connection, unless the lino was entirely in the hands of the Governments of the different countries through which it must pass, between England and New Zealand. It appears to the Committee that the principle that lines of telegraph should bo in the hands of the Government having been recognized in Great Britain and most of the Colon:es, the same principle might most advantageously be carried out in respect to submarine lines. The Committee agree, therefore, that the best course which could be adopted would be for the Governments of Great Britain, India, and the Colonies, to combine for the purpose of constructing a through communication ; the funds to be raised by Great Britain, and the respective countries to be charged annually for interest and redemption fund, in proportion to the extent to which the line should prove to be used by each. Failing such an arrangement, the Committee believe that the nest best plan would be that a Cable should be laid and worked by a contractor, without guarantee, but upon a concession for a stipulated number of years. It would bo necessary, however, that in the event of any such concession, stringent conditions to the following effect should be incorporated with it: — (1.) A time to be specified, within which the line must be completed. (2.) Penalties to be stated, sufficient in amount to insure that the line shall be kept in working order. (3.) If the Cable should prove insufficient for the work to be done, a second Cable to be laid, or the monopoly to terminate. (4.) Power, within specified limits, to regulate the rates of charge. (5.) Provision insuring a regular order in the transmission of messages, including right of priority for Government messages. (6.) Defined terms on which the Government might at any time purchase the Cable, and wholly extinguish the concession. (7.) On non-fulfilment of any of the preceding conditions, the Colony to have the right to terminate the monopoly. - Should an arrangement under this concession principle be effected, there would be nothing to prevent such a wording of the purchasing condition as to enable Great Britain to become the purchaser, in the event of its proving possible to carry out the arrangement already stated as that which the Committee believe would be best for the Colony. The Committee have also had under consideration whether, instead of a monopoly being granted, the Colony should for a given number of years undertake to employ a Cable to an amount yearly, not less than a sum to be specified; that sum to be paid for each year, but the money paid in excess for any year or years to be chargeable with future business. Whilst the Committee do not recommend the adoption of such a plan, they think it one that might be worthy of further consideration, should there bo failure to secure a Cable on cither of the plans previously stated. The Committee draw attention to the appended letter from Messrs. Henley and Co. The Committee recommend: — (1.) That authority be given to the Government to conclude an arrangement with Great Britain, upon the basis of the Imperial Government finding the necessary funds, &c.; or (2), at its discretion, to agree with responsible contractors, upon the basis of a concession, subject to such restrictions as those already set forth. Jraiirs Vogel, Chairman.
REPORT OF THE SUBMARINE ELECTRIC CABLE COMMITTEE.
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