Both Norfolk Island and Lord Howe Island are becoming increasingly popular tourist 
resorts. 
The current contract provides for a through service every five weeks by s.s. Makambo 
(1,158 gross), proceeding from Sydney to Lord Howe Island, Norfolk Island and Vila in the New 
Hebrides, and not less than four other ports in the New Hebrides. returning via Vila, Norfolk 
Island. Lord Howe Island and Svdnev. 
The contractor must also maintain a supplementary inter-island service in the New 
Hebrides by means of a small steamer connecting at Vila with the service from Sydney, and calling 
at not less than 40 ports in the New Hebrides and/or Banks Group. This supplementary 
service is maintained by the s.s. Makatea, at present being relieved bv s.s. Malinoa. which travels 
about 1.566 miles each trip calling at 60 ports. 
The amount of subsidy for the through service is £12,000 per annum, and for the supplementary 
service £3.000. 
Early in 1925, the New Hebrides service was extended to Vanikoro (about 380 miles north 
of Vila), in the Santa Cruz Group of the British Solomons, and on account of the increasing tourist 
traffic between Norfolk and Lord Howe Islands and Australia, the passenger accommodation on 
the present vessel was found to be quite inadequate. To meet this demand, an arrangement 
was made in April, 1926, whereby the steamer left Sydney direct for Lord Howe Island only, 
discharged and received passengers and cargo, and returned to Sydney, without delay ; the 
steamer then proceeded to Norfolk Tsland and the New Hebrides and returned by that route 
omitting Lord Howe Island from that trip. Experience showed this itinerary to be unsatisfactory 
and the original service has since been reverted to. buf, in addition. the short trip to T.ord Howe 
Island 1s made. 
VARIATIONS IN SUBSIDIES AND RATES. 
The following statements show the alterations in subsidies, together with the reasons for 
such alterations, and in passage and freight rates for the term during which Burns. Philp and 
Company Limited have been contractors to the Commouwealth Government :- 
Yate 
| Amount 
Subsidy. 
lat March, 1901 
[st March, 1902 
lst January, 1905 
Ist September, 1910 
lst January, 1914 
lst September, 1915 
£ 
3,600 
6,000 
12,000 
19,850 
22,850 
21.050 
40 000 
[st August. 1920 
Lat August, 1921 .. | 50.000 
{st August. 1929 C1 BB.OON 
Increase 
2,400 
3,000 
7,850 
3,000 
1,800 
decrease) 
IR GRO 
0.000 
= O00 
Reasons. 
Bxtension to Gilbert and Ellice Islands 
Txtension to Papua 
*e-arrangement and enlargement of services 
myproved service to Papua 
Ye-arrangement of services to New Hebrides and Marshall and 
Gilbert and Ellice Islands 
+ had been the practice to include in the earlier contracts a clause 
providing that the contractors would be re-imbursed in respect 
of increased expenditure caused by increases in wages to crews 
and waterside workers, and increases in the cost of coal. From 
Ist September, 1917, to 31st July, 1920, a definite sum of £10,000 
ser annum was provided in the contracts for this purpose, Since 
‘st August, 1920, no such provision has been made, but the 
subsidies for the respective services were increased from that 
date to make up for the discontinuance of the practice. Other 
‘nereases at this date were due to improved services, viz, :— 
Papua-Rabaul service from £11,000 to £14,000 ; Solomons ser- 
vice extended to Rabaul, and subsidy raised from £2,750 to 
£14,000 ; New Hebrides from £4,900 to £12,000—total increase 
£21,350—against which there was a saving of £2,400 due to the 
discontinuance of the service to the Marshall. Gilbert and Ellice 
Islands . 
New service direct to Rabaul and other New Guinea ports, £8,000. 
Increase in service to Solomons and Papua, £2,000 
fnereases of £1,000 each in Papua and Solomons services. Subsidy 
of £3,000 per annum for vessnle perfarmine New Fehrides inter- 
wwland service