The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 23, 1926. SHIPPING SERVICES.

Hokitika Guardian, 28 July 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 23, 1926. SHIPPING SERVICES.

The mercantile ca-mmuiiity in the South Island is indebted to Sir Joseph Ward for the clearness and vigour with which ho has directed attention in the House of Representatives to the neglect that is being suffered by it in respect of shipping services. The matter is one which in reality does not concern only the mercantile community. The importers and other business people are directly penalised bv the system under which a preference is shown by the shipping companies for North Island ports, since.it happens not infrequently that goods imported by northern merchants are sold by them in south* 1 - centres before similar goods imported by. South Island merchants in the same vessel are delivered to the consignees. If, however, business people in the South Island are handicapped by the arrangements under which goods consigned to them pro discharged from

the vessels, and if they lose trade in consequence, it follows that the general community in the South Island must suffer. Moreover, the general community is interested because every taxpayer is a contributor to the subsidies that are paid for the important overseas services that are, as Sir Joseph Ward puts it, centred in tho North Island. During the past financial year, a sum of £24,840 was paid by way of mail subsidy in respect of the San Francisco service and a sum of 1*20,641 in respect of the Vancouver service. These services are, however, not subsidised merely because they are mail-carriers. A subsidy of £IO,OOO upon the Vancouver service and one of 112,500 upon the San Francisco service were paid last year by the Industries and Commerce Department. These latter subsidies are trade subsidies, pure and simple, says the Otago Daily Times. Moreover, they are of special benefit to traders in the NSrth Isaiul. Sir Joseph has, however, made the point that not a single service that touches at tho South Island carrying passengers and mails is subsidised by the country. The, country as & whole pays for the subsidies that are granted, but the North Island receives the benefit of tho services that are subsidised. That in itself is inequitable, but representations in favour of the establishment of a flat rate of freight to any port in New Zealand upon goods in these subsidised services have, so far, been ignored. Placed in a position of inferiority in this matter, tlio business people of the South Island, not. surprisingly, are expressing a. growing resentment over the additional circumstances that the shipping services to their ports are seriously inadequate. If it is necessary that these services should* he subsidied .in order than an improvement in them may he effected and that outliern business people may ho freed from the disadvantage to which the preferential treatment of the North Island exposes them, the payment by the Industries and Commerce Department of subsidies to the San Francisco and Vancouver services, furnishes a precedent that may he legitimately he applied.