SOUTH SEA TRADE

Hokitika Guardian, 25 May 1927, Page 4

SOUTH SEA TRADE

VIEW OF AUCKLAND FIRMS. AUCKLAND, May 23. A deputation representing the business interests connected with the Islands trade discussed with Mr Coates the proposed new Government steamer service to Nine and Samoa. Mr J. I). Gray, secretary for the Cock Islands Administration, stated that the filial port of departure far the new specially built thousand ton steamer would lie Auckland From Niue, the vessel would proceed to Samoa, thence to Lyttelton, 'Wellington and Auckland. A flat rate would he charged between all New Zealand ports mid the Islands both ways The round trip was expected to occupy three weeks. The vessel would have facilities For the carriage of fruit amt copra in separate holds. Several members of the deputation doubted the commercial soundness of the venture, but Mr Contes said that he would be satisfied so long as a substantial increase resulted in the Do-

minion’s trade with dependencies and mandated territories. Opposition was expressed to the flat rate, the merchants explaining that the existing service and the closer proximity of Auckland to the Islands had justified local manufacturers, installing n plant for tinning goods for the Islands, and that a flat rate was practically a bounty in favour of the Southern manufacturers. It was also pointed out that Aucklanders desirous of exporting to Tahiti enjoyed no such fiat rate, hut were loaded with coastal freights between Auckland and Wellington. Mr Gray replied that flat rates were already in existence between New Zealand ports and Britain, hut in rebuttal it was pointed out that the analogy did not hold. New Zealand coastal freights were small in proportion to freights between New Zealand and Britain, but the same was not true regarding tbe trade between New Zealand and the Islands, while the small quantities of trade between the Islands and southern ports was another factor alfccting the comparison. Mr Coates said that lie had carefully studied the question of fiat rates, and was of opinion that they only led to anomalies, but as ins Cabinet colleagues bad decided the matter in his absence, be proposed giving the new service a trial.