PASSENGERS' POLL-TAX.

Taranaki Daily News, Volume LII, Issue 193, 18 September 1909, Page 6

PASSENGERS' POLL-TAX.

SHIPPING COMPANIES' PROTEST. The Harbor Board yesterday received a deputation from representatives of shipping companies in reference to the revenue tax of two shillings levied by tlic Board upon all passengers embarking or disembarking at the breakwater, and asking for its abolition. Mr. W. D. Webster, in introducing the deputation to the Board, said he had been asked by the Northern Steamship Company to the deputation, owing to his long connection with the local shipping, having been agent for the U.S.S. Co. when its first vessel called, and similarly for the Northern Company. He could say from his long connection with the latter agency that the companies and the Board had always worked very amicably together. As the Board knew, the companies wcie feeling the pinch of the Main Tru.ik line competition. Mr. Rudd 6aid he had been instructed by his head office to ask the Board if it could see its way to reduce or abolish the passenger tax, for they found it » great burden to carry. The Board would understand, of course, that it was desirable that the ship should be run, if possible at a profit. This deduction of 2s/off a £1 single saloon fare, and 4s off the return fare of £1 15s, was a big tax. On steerage fares the loss was still greater in proportion, viz, 2s off a 15s fare, and 4s off the return fare of £1 2s Gd, leaving 18s Ud for the companies, or only 9s Ud /per passenger each way. At present there was . a good steamer, an expensive steamer, perhaps, on the New Plymouth-One-hunga service. This vessel, the Ramra, stood well in the public esteem, and the companies did not want to put on a smaller one if this one could be run at a profit. They didn't want to reduce this to merely a cargo service. The Rarawa could carry 300 passengers comfortably, but at present the average was only about forty. A smaller steamer, with less passenger accommodation, and with less cargo space, could comfortably do all the business at present offering. This passenger levy was not charged in any other port in Australasia. He quite understood that it used to be a prolific source of revenue to the Board, but it was not now. As they knew, the passenger fares had been reduced, but the tax had not been reduced in proportion, or at all. Mr. Wilkinson: You din't pay the tax before. The passengers paid it. Mr. Rudd: The company paid one shilling, and the passenger paid one. Mr. Rudd said it had been thrown up at the companies from time to time that this service had been quite a goldmine for them. Sir .Tames Mills had recently informed him that this was not so. His company had had two expensive steamers in this trade, but owing to the competition of the Main Trunkline there was no use for them now. 't had to be remembered that his company had had to maintain a double connection here, one with Onehunga, and one with Wellington, and there were pracSically no passengers between Wellington and here. From the ship-owners' point of view this passenger-tax made the port very unpopular. -Be drew attention to the fact that the passe'ngsr Tares between Wellington and Lyttelton were the same as here, but on the former run there was no passenger levy. He asked the Board to consider the advisability of revising, reducing, or abolishing it. Mr. J. C. Webster, agent for the Northern S.S. Co., said that his company was moving in this, mainly because they considered that as' they were losing money, and not earning the money they had to pay out in tax, it was a very unfair thing to have the tax charged. Regarding Mr. Rudd's remark about the gold-mine, there were goldmines and gold-mines. Some paid, and some did not. He knew that the trade was satisfactory. Had it not been, his company would not have brought thi Rarawa out, and would not have con-

tinned her in the service. Whilst the companies might have been making money, it must be remembered that it had been a big thing for the Harbor Board. It had to be remembered, too, that the steamship companies had recently reduced their passenger fares, but the Board still collected the fuil tax. At present the passenger traffic and the cargo trade was small. Mr. McCluggage asked how New Plymouth's berthage charges compared with those at Wellington and Lyttulton.

Mr. Rudd said he did not know the rates, but certainly New Plymouth was no cheaper than Lyltclton. He had been stationvd there and at Picton, and he had never had to pay 3'/™d per ton on cargo handled as was (lie case' here. The cost ot taking the Corinna into Picton was so much less than the cost of bringing her here that he hesitated to quote the figures. Mr. McCluggage remarked that there was n natural harbor there.

Mr. Rudd stated that the companies were concerned only with the cost of running their ships to the variola ports.

Mr. King asked if the companies Kverc prepared to reinstall! a tri-weckly service if these concessions were made. Mr. Webster said that if sttllicient inducement offered lie would be prepared to recommend his company to make three trips weekly.

At this stage a messenger handed Mr. Webster the followiiig telegram from his head olliet' at Auckland: —"Very sorry cannot promise three weekly services, greatly adding cost of running.

.'resent trallic does not warrant it, an i as not profitable increased service t-assenger toll is heavy burden, and it continued may compel substitution smaller boat for Rarawa." Mr. Wilkinson remarked that the shipping people had not said anything about the recent increase of freight by about 25 per cent. That had been a big tax on the district. Air. Rudd said that New Plymouth had been very favorably treated in Jie. matter of freights, having paid only IDs per ton on cargo instead of 12s Od as was paid between any other two principal ports. The increase to the regular charge was caused by the greatly increased cost of running steamer?, consequent upon the increased wages under arbitration awards,coal,food, and everything else, and, of course, freights must be increased to pay expenses. The deputation withdrew, and the matter was discussed during the afternoon.

Mr King said that the companies had had a vit. _j»od innings. Now that they hau a reduced passenger list thi-y hart reduced their fares, and came to the Board with a request to wipe out the passenger charge. The passenger trade was so far lost that it remained lor the Board to say whether they were prepared to write off the remainder or not. He thought the Board should not attempt t6 deal with the matter right away, but consideration should be deierred for a month, during which time the secretary should prepare and circulate among members a return showing (1) the amount of passcutrer-tax derived during the past three months, ami (2) the percentage derived by the BcH'd from each vessel of the liarawa class. He moved that this return be prepared. The chairman (Mr. Coiiuetl) said that during the present year the Board had received £IOOO. The passengertax revenue, they would sec, had not

altogether ceased. . Since March last, during the whole of which time til.' Main Trunk line had been opened for through passenger traffic, the passenger levies had been worth £503. The next six months were sure to he better, no that the Board's revenue from this source for the twelve months might reasonably be expected to approximate .£lllOO, even more. There was no need to defer discussion. He was opposed to the abolition of the system, because '.'itBoard could not give up this revenae and keep their pledge to the ratepayers that there should be no rate. Mr. McCluggage agreed with the chairman. Mr. Maxwell was quite satisfied that the Board could not accede to the request, for the Board could not afford ;o lose the revenue. If by reducing the tax they could increase the number of passengers there would be something to recommend the proposal. , After an irregular discussion. Mr. [King protested against the Board being iskoil to decide upon an important matter sprung on them without notice.

He was not prepared in his private bu ■!- ne.=fi to decide important matters in 'lrs off-hand manner, and he was goiii" In conduct the ratepayers' business as he conducted his own. trpon Mr Maxwell pointing out that tfe Board couldn't come to any effoe'itve decision without notice of'motion to amend the by-laws, the matter was allowed to stand over till the October meeting.