["State Fish Supplies", The West Australian, Monday 04 December 1916, page 8]
STATE FISH SUPPLIES.
TO BE CLOSED DOWN AT END OF THE MONTH.
STATEMENT BY THE COLONIAL SECRETARY.
The Estimates passed through Parliament last week make provision, for the continuance of the State fish supply business for six months only--from the beginning of July to the end of December of the present year. Speaking in the Legislative Council on Friday last the Colonial Secretary (Mr. H. P. Colebatch) said that it was the intention of the Government to close up the business at the end of the month. To a "West Australian" reporter, Mr. Colebatch has since made the following statement:--"About twelve months ago my predecessor in office (Mr. Drew) announced his intention of closing up the State fish shop in the Perth markets because all the members of the Leislative Assembly representing metropolitan districts had declared themselves hostile to the venture. A petition was then presented to the Minister as a result of which his decision was abandoned. The Government has now decided to close up the whole enterprise for the simple reason that the resulting losses are altogether out of proportion to the possible benefit derived by a section of the community. Like many other similar ventures, the State fishing enterprise was established by our predecessors without the least suggestion of Parliamentary authority. It has been running for about two years, and in that time has lost upwards of £7,000, assuming that the assets will realise their book value. The average loss throughout has, consequently, been
About £70 Per Week,
or £10 per day, and one wonders how long a private venture of the same sort would have carried on under such conditions.
"The capital expenditure, involved is approximately £6,000, the larger items being the steamers Una and Torrens. The former was taken over from the State Steamship Department at a valuation of £3,000. The latter was purchased from Messrs. Mcllwraith, McEacharn' Proprietary, Ltd., for £800. The fact that there was no vote of Parliament out of which the purchase money could be paid troubled Ministers little. The Under-Treasurer was simply ordered to issue 4 per cent. Treasury Bills, redeemable in two years and his comments regarding the irregularity of drawing on the loan suspense account for an absolutely new undertaking were met by an instruction to make payment from the Loan Suspense account and have the money invested in Treasury bills. These Treasury bills will fall due in about six months' time, and it is an interesting commentary on the practice of providing the capital for speculative trading ventures by the issue of short-dated Treasury bills, to find the whole concern closed down in a hopelessly bankrupt condition six months before the Treasury bills mature. I do not propose to traverse the whole history of this unhappy adventure. Shortly after the present Government assumed office, there were placed before me balance sheets dealing with the State fish supplies up to Jun 30, 1916. From those it appeared that in the first twelve months of its operations, from November 30, 1914, to November 30, 1915, the undertaking had lost £3,183, whilst for the seven months ended June 30, 1916, there was a further loss of £2,740. This looked like going from bad to worse since the first twelve months showed a loss of £63 per week and the next seven months a loss of nearly £90 per week. During the Ministerial by-election Mr. Drew spoke in terms of enthusiasm of the improved positio of affairs in regard to the fish supply, and on the re-assembling of Parliament he quoted figures indicating that in the few months immediately preceding his retirement, substantial profits had been earned. These statements seemed to me so
Inconsistent with the Balance Sheets
that I called for a report from the Chief Inspector of Fisheries, who has charge of the department. In this report he refers to the loss of £2,740 for the seven months ended, June 30 last and adds 'This last-mentioned figure has,' I must confess, 'come as a real disappointment to me, as I was under the impression, after sighting the monthly statements prepared by the accountant's branch for the information of Mr. Drew, that improvement rather than the reverse had been shown.'
"At a little later date I had a pro forma profit and loss account compiled for the three months ended September 30, and this showed a further loss of £650. October proved a most disastrous month, the loss being no less than £601--or at the rate of about £140 per week. The reason for this exceptionally bad showing was that it became necessary to have the Una slipped for cleaning, tail shaft drawing, and survey. The Chief Inspector of Fisheries, in a report dated October 30, said that he 'anticipated further interruptions to the service, and the necessity for the expenditure of considerable sums of money at the end of three months. He also declared that he saw
No Hope of Any Improvement
in the venture from a financial point of view, and suggested that 'the Minister consider the advisableness of discontinuing operations at the end of November or at the latest at the end of December.' I am satisfied now that I should have done the State a service had I closed up this venture directly after assuming office, but in view of the statements of my predecessor regarding the greatly improved position, I felt bound to give the thing a fair trial. It may be suggested that an increase in the price of fish would meet the case. As a matter of fact, at the outset of the venture – the time in which the losses were least – prices were lowest. Schnapper cutlets were first sold at 9d per lb., and the price was increased to 10d per lb., and later to 11d., with a corresponding increase in the price of other fish. My chief reason for delaying the closing of the business was a desire not to disorganise the fish supply of the community, and that is still my reason for giving a month's notice of the closure. In this connection it may be interesting to "the consumers" to learn that during the period the State fish supply has been in operation, it has been responsible for about 14 per cent. of the fish consumed in the metropolitan and goldfields areas. The number of persons directly employed is 24.
"The operations of the State fish supply have at least demonstrated that choice fish are to be found in large quantities at Sharks Bay, and can be brought down in ice and landed here in good condition. The knowledge of that fact may induce private people to take on the venture and fully supply the public demand. Having given the whole matter very careful consideration, I am satisfied that there are two
Prime Causes for the Failure
of this particular State enterprise:--
"(1) The vessel employed in bringing down the fish was not suitable for the purpose. She is about 26 years old, and will necessarily not improve. If the Government proposed to continue the service, it would be imperative to secure an up-to-date vessel, specially designed for the work. This I cannot recommend, in view of what I believe to be the second reason for the calamity.
"(2) That the catching of fish is not an industry that can be profitably conducted under Governmental methods. The fish will not always bite within the regular hours allotted for the work of State employees."
