y 
Conditions of Tender.—From a careful review of all the circumstances, the Committee is 
of opinion that improved services at lower cost should be obtained if the conditions for their 
conduct were framed to attract more competition. Short extensions of the contract from time to 
ime cannot be expected to give satisfaction, and this practice has been largely responsible for 
many of the present complaints. The last contract between the Commonwealth and Burns, 
Philp and Company Limited provided for the conduct of the services for a period of two years and 
four months, which has been extended on three occasions for terms of six months, six months, 
and twelve months respectively. In September, 1924, and October, 1925, fresh tenders were 
invited for these services for alternate terms of one year and three years. 
To achieve the best results, the Committee is of opinion that the contracts for the 
island services should be for a period of five years. 
Competition in the past has also been restricted on account of the short time 
available between the calling of tenders and the date for the commencement of the services. 
For instance, the notification calling for tenders published in the Commonwealth Gazette 
of 8th October, 1925, intimated that tenders would close on 30th November, 1925, for services 
to commence on Ist February, 1926 ; and by notification in the Gazette of 25th September, 1924, 
tenders closed on 15th January, 1925, for services to be conducted from 1st August, 1925. To 
overcome this objection, and it is a very serious one, the Committee recommends that a period of 
1t least twelve months should elapse hetween the dates of the acceptance of tenders and the 
mauguration of the service to enable the successful tenderer to acquire the necessary vessels or 
0 have new tonnage built. 
Steamer Routes. —After full consideration of all aspects of the question, the Committee is of 
opinion that the objects of the Pacific Island shipping services can best be achieved by conducting 
‘WO main routes— 
One serving the Territories of Papua and New (Guinea, and 
The other serving the British Solomon Islands Protectorate and the New Hebrides 
together with Norfolk and Lord Howe Islands ; 
hese main services to be supported by local or inter-island services. 
Papua and New Guirea.—To meet the requirements of the Territories of Papua and New 
uinea, the Committee recommends that these Territories be served by a three-weekly mail service 
from Sydney, calling at Brisbane, Cairns and Townsville on alternate trips, Port Moresbv. Samarai. 
Rabaul, Kaewieng, Madang and returning to Sydney by the same ports. 
Such a route, it is considered, would, by offering an inducement to shipping companies 
‘rading to south-east Asia to tender, be of advantage to the Territories themselves by placing 
them on a main trade route and providing them with direct connexion with the Kast, and to 
Australia also, by giving her regular steamship connexion with south-east Asia where, properly 
fostered, there is a growing market for Australian products. Lower freight rates between the 
Cerritories and Australia should also be possible by adopting this course. 
Solomons, New Hebrides, Norfolk Island and Lord Howe Island.-—Admittedly, the New 
Hebrides service is not justified as a commercial proposition, but its continuance is necessary to 
maintain British prestige in the Islands, and to keep in touch with British and Australian settlers there. 
Very little cargo is brought to Australia by this service, and the main passenger traffic is between 
Sydoey and Lord Howe and Norfolk Islands. On the other hand, the Solomons provide 
aractically full cargoes to Australia. The Committee is of opinion, therefore, that the interests 
of these Groups, both of which are under the same Administration—the British High Commissioner 
‘or the Western Pacific-—can be best met by combining the present services and Instituting a six- 
weekly service from Sydney to Lord Howe Island, Norfolk Island, Vila (New Hebrides), Vanikoro 
Santa Cruz), thence to the Solomons. calling at Tulagi. Russell Grou. Gizo and Faisi, and returning 
by the same route. 
Type of Steamers,.—In the conduct of these two main services, it must be stipulated that 
she vessels to be engaged thereon shall be of adequate capacity to properly cater for the passenger 
and cargo business offering. and shall have an economic speed of not less than twelve (12) knots 
per hour. 
Fares and Freights—Although by these routes, the distance between Australia and some 
ports which are now served direct will be increased, the additional speed of the steamers as 
recommended will, to some extent, compensate for this drawback. The Committee is of opinion, 
lowever, that there should be no increase in fares and freichts between Australia and the 
7arious ports by the adoption of these routes. 
Inter-Island Services.—In order that outports and places which have been enjoying a 
regular call under the present services shall not be left without adequate communication. the 
Committee considers that inter-island shipping services should be instituted.