W Islands* n” Paciflc

Subsidy To Burns

h^ PP ?i g o mail services Mr A d Tr b r-v £l2 ’ 6s4 v. Pe £ an u num? ” asked Mr. A. E. Green, who has become the watch-dog of Pacific Territories af fairs in the Australian Parliament The Prime Minister reniieH agreement between the Commonwealth Government and Bums, Philp and Co Ltd. for the maintenance of shipping ser

vices to the Pacific Islands, which ex pired on March 31, 1937, provided for a subsidy payment at the rate of £44 000 per annum, to which the British Solo mon Islands Protectorate contributed £3,000 per annum. The expenditure dur ing 1937-38 was £40,346.

“A further agreement was made with the company, providing for the mainten ance of the services for a period of six years and nine months from April 1 1937. That agreement requires a sub sidy payment at the rate of £44,000 un til December 31, 1938, or until a new vessel is employed in the Papua-New Guinea service, and thereafter the sub sidy is to be at the rate of £52,500 per annum.

“The agreement also provides for a variation of subsidy in the event of vari ations in the rates of wages of the com pany s employees engaged in the main tenance of the services. Under that pro vision, additional payments were made inoo of the Deriod ended June 30, 1938, and an additional subsidy at the rate of £3,250 per annum is being paid from Jffiy i, 1938. The payment of such additional subsidy is to be reviewed in the event of further variations in the rates of wages”.