TRANS-TASMAN SERVICE

Sun (Auckland), Volume IV, Issue 1054, 19 August 1930, Page 10

TRANS-TASMAN SERVICE

CRITICISM OF BLUFFMELBOURNE SUBSIDY MINISTER STRESSES VALUE THE SUN'S Parliamentary Reporter PARLIAMENT BLDGS., Today. A motion passed by the Southland executive of the Farmers’ Union, that the value of the Bluff-Melbourne shipping service, particularly in these stringent times, did not warrant Government expenditure, was commented on today by the Hon. P. A. de la Perrelle, who was associated with the late Sir Joseph Ward in establishing the service. The Minister referred in particular to the remarks at the meeting made by Mr. W. J. A. McGregor, who stated that notwithstanding the subsidy of £39,000 the service had shown a loss of £9,500 and that ii> his opinion the Union Company was strong enough to carry on without a subsidy. “I may say,” said Mr. de la Perrelle, “that when the original agreement was entered into with the Union Company making it possible for the Manuka, and Maheno to carry out an eight days’ service between the Bluff and Melbourne, the subsidy from the Government was fixed at £36,000 per annum. Unfortunately, just after the arrangements were entered into the Manuka was lost, and this information the Farmers’ Union had not before it. No part of the £36,000 was paid. “I look upon the Bluff-Melbourne service as being the most important connection with Australia and New Zealand, and as Minister of the Tourist and Publicity Departments, I want to see both islands get their share of the patronage. The arrangement at present is that the Maheno will 'be making a regular service between the Bluff and Melbourne, and afterward will proceed up the coast as far as Wellington, later returning to the Bluff, from which port she will make her departure for Melbourne. The subsidy paid by the Government to the, Union Company is £SOO a. month or £6,000 per annum. I think that the money is well spent to give the South Island a shipping service in line with the North Island.”