A BAD BARGAIN.

Wairarapa Age, Volume XXXI, Issue 3057, 30 November 1908, Page 4

A BAD BARGAIN.

Ths policy of reciprocal trade has always appealed to us as a basis upon which freetraders and protectionists can come to a practical settlement in regard to trade questions of vital interest to their country, but it is a policy that must be pursued cautiously. The same remark applies to subsidising foreign steamship services. Sir Joseph Ward stated, when replying on Friday last to the sawmillers' deputation, that "the steamship service running to New Zealand, and which had been mentioned in connection with the timber trade, had been entered into so far as New Zealand was concerned with the object of trying to assist producers to get an output trade to Canada. The Canadian Government paid the whole of the subsidy (£10,000) to New Zealand, and the Government had agreed to pay £IO,OOO a year from New Zealand to Canada in order to develop trade. It was not at that time contemplated that timber would form a portion of the trade between Canada and New Zealand by this service. None of the steamers had at first, or for a considerable time after the commencement of the service, carried timber. The date of the expiry of the subsidy, so tar as New Zealand was concerned, was April 26th next. The Government was not prepared to subsidise any line of steamers to carry timber against the interests of the people working in this country. When the subsidy was originally started they had never contemplated that the American timber basinesa was going to be developed." In this instance it must be admitted that the Government made a bad bargain, and they would hardly have done so had due care and attention been paid to the admonition contained in the old, but wise, saying: "Never buy a pig in a poke" If steamship companies are going to be subsidised to any extent to carry goods to New Zealand, it would seem to be necessary that the goods to be carried should be specified before any subsidy is agreed to. There is no reciprocal trade treaty between Canada and New Zealand, and, presumably, it would be a difficult matter to arrange.