IS IT GOOD BUSINESS?

Sun (Auckland), Volume III, Issue 873, 17 January 1930, Page 8

IS IT GOOD BUSINESS?

THE decision of Cabinet to sever Norfolk Island’s present connection with New Zealand by reducing the itinerary of the Government motor-ship Maui Pomare is by no means an unexpected blow, and serves to illustrate the proverbial reluctance of politicians to depart from preconceived plans, however inopportune these may be. After March 31 the Maui Pomare—a vessel fated, seemingly, to a discordant Career under State guidance—will continue to call regularly at Lyttelton, Wellington and Auckland, while Dunedin will be visited every second trip. Many Norfolk Island settlers are New Zealanders who were attracted by the pleasant prospect of regular and direct communication, and with whom New Zealand firms have built up a prosperous little export trade. If the latest decision is carried into effect, these settlers, inevitably it seems, must transfer their business to * Australia. The fact that the Government has been faced with the problem of a ship which has failed to prove itself a paying proposition is not challenged, though this cannot be accepted as an excuse for dispensing with the only portion of the service that does pay. In any case, as a State-owned vessel the Maui Pomare is merely following general precedent, for State-owned shipping lines often are expensive undertakings, which may he justified by circumstances apart from bald ledger figures. Business men of the Dominion as a whole, and Auckland in particular, who have taken all reasonable advantage of the Maui Pomare connection with Norfolk Island and have founded what was previously a promising trade; Norfolk Island residents who have concentrated on a small hut growing reciprocal trade; and a travelling public that is becoming increasingly impressed with the attractions of an island holiday at reasonable cost and without undue waste of time—-all these represent factors which have been outweighed by a stubborn determination to retrench, even though there is nothing to prove that the move will bring about the desired result.

In September last the Auckland Chamber of Commerce discussed the problem of losing the Norfolk Island portion of the Maui Pomare service, and was party to an attempt to dissuade the Government from its threatened intention. At that time a review of the shipping position failed to disclose an alternative service, nor have the passing months solved the difficulty. At present the volume of trade does not warrant a regular and direct service between Auckland and the Island, it being estimated that the cargoes could be handled by a vessel diverted to that run for only one week in five. The use of coastal steamers is made difficult by necessary changes in crews for longer trips. Therefore, unless a solution is found —and no sslution, thus far, has made itself even vaguely apparent—New Zealand stands to gain possibly a healthier Maui Pomare balance-sheet at the expense of a profitable and expanding outside market and its accompanying facilities. This may be good accountancy, but is it good business policy! _