LOSS ON SERVICE

Sun (Auckland), Volume IV, Issue 1014, 3 July 1930, Page 11

LOSS ON SERVICE

MELBOURNE-SOUTH ISUfo £IO,OOO IN FIVE MONTHS I-oss on the service 'at ween , Island ports and Melbourne suffered by the Inion Steam company to the < xttnt of elusive of maintenance costa. tAN' revealed in the summary of reeeJ* and expenditure for the period *2,' which the Government subsidy rbeen payable. Tho Government offered a for a contract proposing that, dura period of two years c-mmenciiwT! October 1. IS2**. two steamers if “ less than 5,“0b tons should performround voyages between Dunedia Melbourne, proceeding alternately 7* Bluff and Wellington, with calu £ Lvltelton. Actually, the double vice was not run. The Mahen, iL delayed .-it ilydni y for repairs , her turbines were and tS Manuka was wrecked on I >w- .- hast year. Since then, the ilita* has carried on the sorvic, m The ship's total earnings frw* ceinber 11 until Man . 21, the i-i.-. of tho Union Company* liaif-yd) were £39,278, as against oisbtaw. ments of £43.571. The first Bgum are inclusive of the Government sidy, and the disbursements do tv Include the fT/JWO or £B.OOO avera*. cost ot periodical overhauls, or th depreciation, or interest on oapit; value. From April 3 to May ?0. the flrday of tho last trip, the • rnings „g ii 1-1.788. the corresponding dbb**; ments In ing £20,387. leaving a defcof £5.598; thus the total excess « expenditure over r- venue was uj;

DUNEDIN OPINIONS ALLEGATIONS OF NEGLECT COMPANY “LUKEWARM" From Our Own Correspondent DUNEDIN. Today. Commenting on the statement regarding the losses made on the BluffMelbourne shipping service, the Dunedin Chamber of Commerce ha* issued the following statement;— It is unusual for the Union Steaz Ship -Company to divulge informatk/L of this nature and the question naturally arises, who made it available? I’rior to the Union Company's preset contract with the Govt mmeat tho* service, with the exception of Blr_ being included on every outward voyage. was carried on without any snfc. sidy. .During the short period tfcr il jnuka and the Maheno were in the service there was a steady increase a trade, in spite of the fact that the service was running for oniy three month* and with no advertising by the Unite. Company, either in the Dominion sr abroad. “If the Union Company is really anxious to make this service pay cocsiderable quantities of cargo nor transhipped at Sydney and sent vj* Wellington could be transhipped ai Melbourne and sent via Bluff. Thu Maheno has several times sailed from Bluff for Melbourne with her ho& full and. as it is known she is a very costly boat to run, this raises the question, can she be made to pay hi any service (even with a subsidy)? What is essential to the success of ttds service is a more frequent service conducted by modern and ccenonried steamers. “In fairness to th© South Island it should be pointed out that this is th* first South Island service for which * subsidy lias been asked, whereas die North Island has been assisted far many years through subsidies paid t* th© San Francisco and Vancouver routes. In view of the fast terries now provided via Panama, it is extremely doubtful whether both subsidies are now necessary- It should not be forgotten that huge losses hav» been incurred on public undertaking* in the North Island toward which the south Island contributes pro rata. Tts wonder is that the loss on the Me!- | bourne service is not greater consider- ! ing the amended service commence! without any advertising, with the harI dicap of an unsuitable boat, and win

i lukewarm attitude on the part of tbe Union Steam Ship Company.”