Shipping Rearrangement

B.P. May Invade N. Caledonia

Norfolk Island In Luck’S Way

Very interesting developments in connection with the traffic and trade between Sydney, Norfolk Island, New Caledonia, the New Hebrides and Auckland, are pending.

WHEN, under the recent rearrange ment, the Morinda was put on * s. to the Sydney-Norfolk Island- Auckland service, it was hoped that sufficient business would be available to make the improved service worth while. The experience of the past two months, however, has been most dis heartening to Messrs. Burns, Philp and Co. Both the passenger traffic and freights available have been so small as to mean that every mile that the Morinda has travelled under the new arrangement has represented a loss.

The average number of passengers car ried, since she entered the new service, is about eight—and she is capable of carrying 70!

It is not surprising, therefore, to learn that the Burns, Philp interests have been further examining the situ ation with a view to obtaining some relief; and it is now believed that a new arrangement, embracing the Nor folk Island-Auckland services, but bringing in New Caledonia and New Hebrides, will operate after the com pletion of the Morinda’s trip scheduled to commence on September 5.

Various factors in the situation have been considered. One is that Norfolk Island is eagerly seeking a market for its produce in New Zealand. Another is, that it is believed that many New Zealanders will visit Norfolk Island, as a holiday resort. A third is that New Caledonia, resenting Australia’s hostile tariffs, is now proposing to buy from New Zealand much of the food stuffs which she originally obtained from Australia, and is seeking shipping communication. Still another is that Burns, Philp interests are awake to the fact that New Caledonia is offering an attractive field of enterprise, be cause the French Government, having plenty of gold, is pronosing to make a large loan available to New Caledonia for developmental enterprises. The ex penditure of this money is likely to create commercial activity in New Cal edonia and the New Hebrides. Burns, Philp have no branch in New Caledonia at the present time, although they are soundly established in the New Heb rides. Burns, Philp steamers have not in the past called at Noumea.

New itineraries for the Morinda, now under consideration, include the fol lowing : Sydney New Hebrides Norfolk Island Noumea Auckland Norfolk Island Norfolk Island Auckland Noumea Norfolk Island (Cont’d on right) Sydney Under this itinerary, the Morinda would leave Sydney every six weeks.

Other alternatives are: Sydney OR Sydney Norfolk Island Norfolk Island Auckland Noumea Norfolk Island New Hebrides Noumea Noumea New Hebrides Norfolk Island Noumea Auckland Norfolk Island Norfolk Island Sydney Sydney Under either of these itineraries, the steamer will return to Sydney every five weeks.

The proposed rearrangement has been under discussion for some weeks now between Messrs. Burns, Philp and the Federal Government, and it is un derstood that the itinerary providing a round trip every five weeks is the one favoured by the Government. Other interests, however, favour the sixweekly schedule, allowing for direct shipment from New Caledonia to Auck land —an arrangement which, it is con fidently believed, will build up a sub stantial trade between the French Colony and the Dominion. It would also provide New Zealanders with a most attractive tourist trip.

The entry of Messrs. Burns, Philp into the New Caledonian trade, parti cularly if it is attended by the estab lishment of a branch store in Noumea, is likely to be strongly resented by the French interests. Such a development, however, may be regarded as certain, sooner or later. It is the general belief that fairly soon the New Hebrides will

pass entirely under French control (the muddling and short-sighted policy of British officialdom making the con tinuance of an independent British community there practically imposs ible) and in those circumstances it is not likely that Burns, Philp will aban don their valuable New Hebrides con nection—particularly as the firm had so much to do with the early British colonisation of that group. It is much more likely that Messrs. Burns, Philp will extend their operations to New Caledonia and seek to establish them selves more strongly in the French is lands, even if it means the incorpora tion of the Burns, Philp interests in those islands as a special company registered under French law.

Generally speaking, it is a very inter esting development, although not at all pleasing to those who desire to see Aus tralia’s trade connections with those islands maintained. The effect of the new shipping itinerary will be the div ersion of the quite valuable trade of Norfolk Island, New Hebrides and New Caledonia from Sydney to Auckland.

As against that, however, the strength ening of the Burns, Philp connection in the French islands will be of defi nite advantage to Australian manufac turers, from whom the big firm buys so large a proportion of its supplies.

The whole question of the Morinda timetable is now under consideration by the company and the Federal auth orities. It may be said, however, that it is practically certain that a rear rangement will come into force at an early date. The main difficulty, at the moment, appears to be a desire on the part of the company to avoid a time table that will bring bananas from the New Hebrides-Noumea-Norfolk Island region to the Auckland market at a time when they would conflict with the arrival of similar cargo by the Tofua from the Samoa-Fiji-Tonga groups.

Incidentally, Norfolk Island, from be ing a very inconspicuous dot on the road to the New Hebrides, is now appar ently going to find itself an important point at the crossroads of important ocean traffic. The new arrangement is going to bring it into frequent and close contact with Sydney, Auckland, Noumea and Vila; and if present plans for the development of the tourist traf fic mature, the charming little island is likely to enjoy a very prosperous future.

Papua And New Guinea

Renewed appeals by the residents of New Guinea and Papua for lower pas senger and freight rates on the steam ers running to Australia have brought about a further reconsideration of the northern islands shipping services, as between Messrs. Burns, Philp and Co.

Ltd. and the Federal authorities.

The company, however, quite reason ably pointed out that under present conditions every one of its Islands steamers is being run at a loss, and any reduction of fares and freights is quite impossible. The company, how ever, suggested that its original plan to lay-up one steamer and allow the other steamer to work both Papua and New Guinea should be again consid ered. This would mean, in effect, that one steamer would be kept fully em ployed and possibly run at a profit instead of two steamers being half employed and both running at a loss It was suggested that if one steamer could work New Guinea and Papuan ports, a reduction of fares and freights might be considered.

The Administration, however, has ascertained that public opinion, in the two Territories is strongly against the suggested amalgamation of the two ser vices. Each Territory wants its own steamer, as at present, and apparently would rather have the two services maintained, instead of one steamer ser vice and reduced rates.

Negotiations are still going on, but it is not expected that there will be any material alteration in the present New Guinea and Papuan timetables.