D—No. 4

The Government of this Colony has demurred to this claim, as being clearly contrary to the spirit of the Treasury minute above referred to, —which can only be understood as a complete scheme, embracing all the Australian Colonies, and distinctly providing for branch services to those Colonies not actually visited by the Suez steamers. It has therefore been maintained on the part of this Government that New Zealand is entitled to demand, under the agreement of 1855, that the branch service to her shores should form part of f—and should be charged to the contract for—the main line. A Return is furnished in Appendix H showing approximately the amount chargeable to this Colony, supposing the claim acceded to, from the date of the commencement of the Coleman Service on the Ist December 1858, till the end of the year 1860. The Return for the period ending 31st July 1860, is only an estimate, as the records of the several Post Offices were not then kept in such a form as to ensure complete accuracy. The figures given, however, shew approximately the amount of the claim. The Returns from the 31st July 1860, to the end of the year are compiled from records kept in the various offices for the express purpose of furnishing the information required. The agreement entered into by the Government with the Inter-colonial Royal Mail Company in April 1859, coming into force in June of that year, and which was further developed in the following December by the establishment of a Service between Auckland and Wellington by way of the East Coast, has been terminated under the directions of the House of Representatives. The inconveniences of reverting to the original and less complete Service are naturally felt more tangibly, (as regards the Provinces of Auckland and Hawke's Bay especially,) than would haye been the case had the Colony never enjoyed the advantages of a Service better adapted to its circumstances. It is understood that the Provincial Government of Auckland, sensible of the evils likely to result from the proposed alterations made an attempt before that alteration took effect to conclude arrangements with the Company for continuing the Sydney and Auckland line. It appears, however, that the negociations entered into for effecting this object were attended with no results beyond that of prolonging the direct service by a single trip. A proposal was at the same time made for the establishment of a permanent service, intended to bring the various Ports of New Zealand into communication both with Melbourne and Sydney, and to be performed by two vessels monthly ; —one starting from each of these Australian Ports and making the circuit of the Colony by the Eastern Coast in opposite directions ; the one starting from Sydney for Auckland—thence via Otago for Melbourne ; —the other starting from Melbourne for Dunedin, and proceeding via Auckland to Sydney with the homeward Mails. The following Time Table shews the details of the plan proposed, taking one trip for an example:— Leave Arrive at Melbourne, January 12 Otago, January 20 Otago „ 23 Canterbury „ 24 Canterbury „ 26 Wellington „ 27 Wellington „ 29 Hawke's Bay „ SO Hawke's Bay, February 1 Auckland, February 3 Auckland „ 6 ...... Sydney „ 13 The other steamer To leave Arrive at Sydney, January 18 ...... ...... Auckland, January 25 Auckland „ 28 ...... ...... Hawke's Bay,, 30 Hawke's Bay, February 1 Wellington, February 2 Wellington „ 4 Canterbury „ 5 Canterbury „ 7 ...... ...... Otago „ 8 Otago „ 10 Melbourne „ 18 It should be borne in mind, in discussing this, as well as other alterations in the contract with the Inter-colonial Royal Mail Company, that the right finally to agree to them does not rest altogether with the Colony. The Imperial Government, as a party interested, claims to be consulted, in order that it may judge whether its interests or liabilities under the contract originally entered into with the Admiralty are thereby in any way affected. This right was distinctly insisted upon in the case of the alteration of the Service in April, 1859, which, although eventually acceded to, was subjected to a severe scrutiny ; and it is not to be supposed that a proposal of the nature now under discussion would be submitted to a less rigid examination. On the contrary, the reasons which induced hesitation in acceding to the re-arrangement of the Service in the former case would feecome of much greater weight in the latter. In one pase the alteration proceeded on the basis of the original contract, and was substantially nothing more than an additional Service engrafted en it, the cost of which was defrayed out of Colonial funds. By the other the whole original contract is abolished, and a new one substituted for it. The more obvious objections to the plan as proposed may be summed up under three heads: Ist. The increase of distance to be traversed, and consequent increase of expense. 2nd. Greater liability to irregularity of arrival than under the present contract. 3rd. Deficient Inter-Provincial Communication. The increase of distance may be seen by the following comparative Table of distances to be traversed under the proposed scheme, and the existing contract respectively,—which, ir not absolutely accurate, may be considered as substantially correct.

Appendix H

Return to original cantract.

Proposed new arrangemerits.

Objections t» ropese sew service.

5

ON THE POSTAL SERVICE OF NEW ZEALAND.