POST OFFICE—MAIL CONTRACTS (TABLE BAY AND ZANZIBAR), AND (ZANZIBAR AND ADEN). (Hansard, 4 August 1873)

THE CHANCELLOR OF THE EXCHEQUER,

who was now present, expressed his regret that he had been absent when the matter was called on. The statement he had to make on this subject, which he trusted would be satisfactory to the House, would be a very short one, because the question involved in it had been narrowed to a single point. The House had appointed a Committee to consider and report on the question, and that Committee had decided that it was the duty of the Government to offer the contract to the Union Steam Ship Company on reasonable terms. They did not show exactly what these reasonable terms were to be; the nature of the case, in fact, did not admit of that being done. The Government had, however, undertaken to give effect to the recommendation of the Committee in the form which it assumed, and called upon the Company to state what terms 1554 they were willing to agree to. The result was that the Company had assented to the contract price being reduced from £26,000 to £20,000 per annum. It was, of course, impossible for him to know whether that reduction would appear satisfactory to the House; but, at any rate, it could not be denied that the sum he mentioned was a considerable reduction on the terms for the conveyance of the mails between the two places mentioned in the contract. It was exceedingly desirable that the matter should be settled at once, because otherwise considerable difficulties might arise in reference to it, leading to a stoppage of the Service, which would be a matter of great public inconvenience. He might mention, in illustration of the effect the contract was likely to have, that the Company had already entered into a contract for the conveyance of 500 negroes from Zanzibar to Natal, where they would be employed as free labourers. It would be a great pity were such a promising experiment to be interrupted in consequence of delay resulting from the House refusing to approve this contract. He freely admitted that at this late period of the Session, and taking into consideration the short Notice that had been given, it would not become the Government to press the matter, even were they sure of a majority against any decided objection; but, at the same time, it would be a great misfortune if the subject were merely delayed for any other reason than a real intention to alter the terms of the contract. The Government had endeavoured to meet the wishes expressed by the Committee, and he trusted that the House would think they had succeeded in doing so. He might also mention that there would be no change in the contract to carry the mails from Zanzibar to Aden.