and Subsidy
pp. 11-12 · Read in the full issue
Commonwealth Government and Subsidy Probability of An Inquiry
From a Special Correspondent.
Canberra, June 12
IT can be said definitely that there is a section of the Commonwealth Government which is opposed to a continuance of the subsidy to Messrs. Burns, Philp and Co. Ltd. in connection with the Pacific Islands service.
It appears that the position has been under investigation in recent weeks, and the view is held in certain quarters that there is no justification for subsidising the steamers running to Papua and New Guinea, because both steamers on every voyage are full of passengers and cargo.
Both the freight rates and the passenger rates are high—very high according to some opinions—and if the Company cannot make the service pay, as an ordinary commercial proposition, under these conditions, it is not owing to the backward development of the Territories concerned, but must be due to internal arrangements for which neither the Commonwealth Government nor the Pacific Territories can be held responsible.
The view is also held that, if the present Papuan and New Guinea timetables are unduly “stretched,” it is not the fault of the Commonwealth Government, but of Messrs. Burns, Philp and Co. themselves, who have withdrawn certain interisland steamers from service and are trying to make up for the transport facilities thus lost by compelling the overseas steamers to call at too many small islands ports, which previously were worked by the inter-island vessels. It is stated that the firm is now running only one interisland vessel in New Guinea and the Solomons, where not so long ago it was running three.
With regard to the rates charged, it is strongly held here that the passenger rates from Rabaul to Sydney, for instance, are too high: and it is said that it is possible to ship cargo on some vessels from Australia to Europe at a lower rate per ton than is charged on cargo from Australia to New Guinea.
It is evident from comments I have heard here, that there is little likelihood of a new contract being made be tween the Commonwealth Government and Messrs. Burns, Philp & Co. Ltd. unless and until further inquiries have been made into the whole of the circumstances surrounding the transport facilities existing between Australia and the Islands, and it is likely in that connection that Messrs. Burns, Philp & Co.
Ltd. will be asked to submit more detailed information than they have done in the past to justify their present services and charges.
New Guinea Tariff
It is likely that such an enquiry will embrace the possibility of imposing in New Guinea a preferential tariff in favour of Australia. It seems to be a fact that during the past year or so Japanese goods
(Continued overleaf.)
of all descriptions have been pouring into the Mandated Territory, and displacing goods of Australian and British manufacture which formerly held this market, practically unchallenged. The people of New Guinea may not like the idea of a further tariff; but there are strong arguments, it seems, in favour of the contention that, if Australia is to be responsible for the administration of this rich and growing Territory, Australia should have definite preference in the matter of trade.
EDITORIAL NOTE: There are two points which are not dealt with in the foregoing article, but which necessarily will receive the consideration of the Federal Ministers. One is that the ships which run to New Guinea and Papua carry very little cargo on their return voyages to Australia, the other is that Burns, Philp and Co., during the long period that they have received an Australian subsidy have observed Australian wages, rates and conditions aboard their ships. The cost of this, on occasion, has been staggering. We published not long ago, some details of the amounts paid to cooks, firemen and stokers aboard a B.P. steamer, showing that in a number of instances they received more per month than the officers. Presumably, if B.P. lose the subsidy, they will feel that they are under no further obligation to observe Australian rates and conditions.