HC Deb 20 August 1857 vol 147 cc1944-8

MR. MACARTNEY moved an Address for copy of any contract entered into with the European and Columbian Steam Company, or the European and Australian Royal Mail Company, in pursuance of a tender bearing date the 11th day of June, 1856. In so doing, he disclaimed any personal interest whatever in the matter; but he had, for several years, taken a deep interest in the prosperity of the Australian Colonies, and had acted with his late lamented Friend, Lord Jocelyn, for the purpose of promoting postal intercourse between them and this country. Last year, the subject of postal communication to Australia occupied the attention of the House, and he would refer to that and the circumstances which preceded it. In the year 1854, the postal service between these colonies was performed by the General Screw Company, in connection with the Peninsular and Oriental Steam Company, but the former Company had ceased, and the latter had to withdraw several of its vessels for the transport service. In 1855 it was performed by clipper ships, but they exceeded the average time agreed upon so greatly that the Government had to put an end to the contract. In 1856 a question was put to the hon. Gentleman the Secretary for the Treasury on the subject, and he stated that the service would be performed by screw steamers under contract, and that the colony would pay half the amount. In the May following he said that tenders had been sent in in the March preceding, but that they had been all rejected. On the 19th June, the right hon. Member for Droitwich (Sir John Pakington) asked the hon. Gentleman what was the position of the arrangements, and the reply was, that tenders had been sent in that day, but that, as there had not been sufficient time to examine them, he would give an answer on the day following. It was not, however, until the 26th that the right hon. Gentleman answered, and then he stated:— That it was a matter of no small difficulty to arrange a service of such importance in a manner in which it should be carried out perfectly satisfactory to the Government of this country, and to those colonies that were so much interested in it. There had been so many trials and failures of former experiments, that it was obviously necessary that the matter should be arranged, not only in a manner that would give satisfaction at present, but that would ensure permanence. The House was aware that after a great deal of consideration, advertisements were issued for tenders, the object of which was to test all the different routes by which Australia could be reached in the shortest possible time. After putting out these advertisements, offers were received by the Government of such a nature as to show both the Government at home and the representatives of the colonists in this country interested in the subject that the only sure way of reaching Australia in a short time would be, by the overland route to Suez, down the Red Sea to Point do Galle, round Cape Louis to Melbourne. Well, after very considerable attention to the subject, the Admiralty came to the conclusion that this was the best route, and they authorized the Treasury to advertise for tenders, and the Government had received four tenders for that service. He would shortly state the nature of them. One proposed to carry the mails for a comparatively small sum of money, but there was, as regarded that tender, this disadvantage—that no vessels were ready, that at least twelve months would elapse before the vessels could be ready, and three months more before they could be placed on the sation. It therefore appeared to the Government that this tender could not be accepted. On the ground of delay alone they would not be justified in accepting it, as it involved a delay of fifteen months. The next tender was of a similar nature. The amount was not very large, but there again the vessels were not ready, and a very long time must expire before the service could be commenced. Under these circumstances the Government also felt justified in rejecting that offer. The third tender was put in by a very powerful company, competent to carry out the service, and having in their possession vessels sufficient in power and sufficient in number; but the company proposed this condition, that, the Government should wait for an uncertain period before the commencement of the service, and until those vessels were disengaged from the transport service in which they were, at present, employed. That was a conclusive reason against accepting that tender. But there was another reason, namely, that the company refused to be bound by the penalties, which were strict, and which, on all occasions where there was a non-fulfilment of a Government contract, it was necessary should be imposed. Besides, it was obvious that, in a contract of this kind, affecting both this country and the colonies, whatever conditions were imposed must be imperatively adhered to by the home Government, who could not relax any condition in which the Colonies were equally concerned. Therefore, on two grounds, the Government were obliged to reject this tender; first, because the company were not in a position at once to commence the service, and, secondly, because they would not bind themselves by those penalties which were considered absolutely necessary to insure that the service should be performed in a satisfactory manner. The fourth tender was the largest in amount by a considerable sum, but it comprehended the immediate commencement of the service by vessels recently built. The company also took upon themselves the performance of the contract under the penalties in full; they likewise proposed to commence the service at Southampton, though the conditions of the tender only required it to commence from Suez. They would take the mails and passengers direct from Southampton to Australia. That appeared to the Government to be a very important object, because, although there was now a perfect postal establishment at Suez, yet a late Indian mail might delay the Australian mail for a fortnight, and in that way many of the advantages which the Government were anxious to secure would be lost. Therefore, though the amount of this tender was much larger than the other offers, yet, after a communication with his right hon. Friend the Secretary for the Colonies, whom he, on this occasion, looked upon as representing those colonies which had joint interest with this country in the arrangement, and would bear a considerable portion towards the expense of the service he (Mr. Wilson) could not hesitate in consenting to pay a large sum of money in order to secure what he believed to be great advantages to the Australian Colonies. He had made strict inquiry as to the responsibility of the parties, and nothing could be more satisfactory than the account he had received, not only as to their ability in point of capital, but also as to their knowledge, energy, and business-like habits. The arrangement would be this:—The first vessel would be ready for survey in the month of August, and would depart on a voyage between Southampton and Melbourne direct round the Cape, with passengers in October; that vessel would be ready in January to take up the service from Melbourne to Suez and back; another vessel would be despatched for Melbourne in November; a third in December, and a fourth in January. From January the service would be performed between Suez and Melbourne monthly, without interruption, backwards and forwards each month. The vessels would be of 2200 tons burden, and not less than of 500 horse power. He thought everything had been done which money and invention could achieve in order to accomplish the most rapid and regular communication between this country and the Australian colonies. The hon. Gentleman subsequently stated, That none of the vessels to be permanently employed would be less than 2,200 tons burden. There were two of 1800 tons to be employed temporarily. He did not exactly remember the time stipulated for the passage, but he thought that the number of days was about fifty from London to Australia. The penalty to be incurred for the non-performance of the contract was, for the first day of infringement, £50, and so increasing by £50 every day afterwards. The first vessel should have been ready for sailing on the 1st of October, but she was not tendered as for survey, according to the statement of the First Lord of the Admiralty, until the 17th or 18th of October. The penalty was, for every day after the 1st of August, £10 per day, and £100 a day for every day after that upon which she was to start. She was surveyed on the 18th of October, she started on the 19th, and she broke down soon after.

MR. WILSON

said, there was no objection to give the returns which were asked for, but he could assure the hon. Member that, although there had been one or two failures incidental to a new company, yet upon the whole, the service had hitherto been satisfactorily performed. The Government had exacted the penalties prescribed for any breach of the terms of the undertaking, and would continue strictly to enforce the contract.

MR. CONINGHAM

said, that he must complain of the vast amount of money which was granted out of the public purse to the mail companies, He understood, from the report of a recent meeting, that it was proposed to amalgamate the West India Mail Company and the Australian Company. What interest had the public in granting the enormous sum of £910,000 to enable two companies to amalgamate, neither of which had been very successful? There was a suspicion amongst the public that great favouritism had been shown, and he was inclined to think there was good ground for that suspicion. In the case of the West India Mail Company, their contract had been granted without being put up to competition, while the Australian Company's contract was the highest which had been offered. Neither of these Companies had successfully accomplished their work. The penalties for non-performance had been fixed, so as to enable the companies to execute their works slowly or rapidly as best suited their purposes. He would conclude these few observations by deprecating, for the future, the granting of contracts without public competition.

MR. WILSON

said, that the question of the amalgamation of the two companies had not come before him officially, but when it did, it would be considered solely with a view to the public interest.

Motion agreed to.

Address for Copy of any Contract entered into with the European and Columbian Steam Company or the European and Australian Royal Mail Company, in pursuance of a Tender bearing date the 11th day of June, 1856, and signed by John Orr Ewing, for conveying the Australian Mails from England to Melbourne via Southampton, Alexandria, and Suez. Returns setting forth the number of Days occupied in each voyage out and home, separating the portions of the route between Southampton and Alexandria from that between Suez and Melbourne; also, a list of Penalties incurred by reason of non-arrival according to Contract, and the amount (if any) already levied or deducted from the Contractors' remuneration. Of the Names, Tonnage, and Horse-power of all Vessels employed by virtue of said Contract in the Australian Postal Service. And, Copies of all Communications between the Treasury, the Directors of the European and Australian Royal Mail Company, and of the Royal Mail Steam Packet Company, with the view of amalgamating said Companies, to enable them to continue the Mail Service to Australia and the West Indies as one Company, and the terms proposed by the Government or the said united Company for performance of the Postal Services now performed by those Companies separately.

House adjourned at half after Ten o'clock.