ALL CONDEMNED

Evening Post, Volume CX, Issue 72, 22 September 1930, Page 10

ALL CONDEMNED

FARMERS' SURPRISE

RESOLUTION

DEPUTATION MILS

(By Telegraph.)

(Special to "The Evening Post.")

INVERCARGILL, This Day.

When a strong deputation of representatives of important local bodies waited on the Southland executive of the Farmers' Union at its meeting on Saturday to remonstrate with the farmers on their resolution passed a month ago urging the discontinuance of tho subsidy for the Melbourne-South Island shipping service, it was confidently expected that the executive would be induced by the eloquence of the deputation and the weight of the figures presented to rescind the motion, which has not yet been forwarded to the Prime Minister. It came as a surprise, therefore,' when the meeting did not merely confirm its earlier resolution but decided to' request the discontinuance of all shipping subsidies, particularly that of £60,000 for the San Francisco service. It was maintained that with tariff barriers raised against New Zealand produce by Australia and the United States, the Dominion derived no benefit from subsidies paid for the maintenance of shipping services, and it was contended that if any subsidy was to be paid, it should be forthcoming from the countries which benefited from the trade. The deputation presented a Strong case, urging that there should be proper communication between Australia and the South Island of New Zealand, and it was desirable that the service which had been in operation before the war should be built up again, in order that the South Island should have the benefit of direct trade with the Commonwealth, giving an opportunity for primary producers of this part of the Dominion to sell some of their products in the market across the Tasman. Government assistance would be necessary until the support given to the service became sufficient to make it self-sup-porting. For the first year a subsidy of £6000 had been paid, and it was not advocated that a large sum should be paid by the Government. During the first year that the service had been in operation with Government assistance, outward cargo had amounted to 6719 tons, from the ports of Wellington, Lyttelton, Dunedin, and Bluff, and inward cargo amounted to 10,083 tons. Eegret was expressed that just as the support of the whole of the South Island and the aequiesenee of the North Island had been secured to the subsidy, the Farmers' Union executive should make a drastic pronouncement nullifying the effect of the long agitation. Immediately on the retirement of the deputation, the chairman of the previous meeting moved that the resolution be confirmed. He declared that the deputation had failed to convince him that the service was of any benefit.

Mr. W. J. M'Gregor, who first brought the question under the notice of the executive, declared that the service would not be of any value to New Zealand until Australia agreed to a reciprocal tariff. The present barriers effectively prevented the exportation to the Commonwealth of Dominion products. The balance of trade for the past year was stated to be four millions in favour of Australia, and it was contended that if any subsidy was necessary, it should be paid by the Commonwealth Government. The subsidy of £60,000 for the San Francisco service, for the establishment of a quick mail service to Great Britain, was now rendered quite unnecessary when the journey via Panama occupied only two days more, and the tariff against New Zealand products nullified the possibility of trade with the United States or Canada, "New Zealand has ; paid millions away year after year over and above the balance of trade to Australia, Canada, s_d America —millions which we . noyr sorely realise should have gone to the country on *-hieh we absolutely depend for our bread and butter," continued Mr. M'Gregor. "Like a bolt out of the blue the day has struck us when Britain can no longer pay us the high prices of the past for our produce, while her industries languished for the want of our support that we have so carelessly given to countries who count us as nought." Finally a resolution was passed that in view of the eoonomie situation and the trade barriers raised against New Zealand produce by Australia and the United States, all shipping subsidies to these countries be made a matter of negotiation with the Governments concerned, and not renewed until trade with these countries could h& re-estab-lished on a fairer basis than at pre» sent.''