The Comptroller-General of Customs has forwarded the following memorandum for advice:

Section 286 of the Navigation Act 1912-1920 provides:

1. Where it can be shown to the satisfaction of the Minister, in regard to the coasting trade with any port or between any ports in the Commonwealth or in the Territories under the authority of the Commonwealth-

1. that no licensed ship is available for the service; or
2. that the service as carried out by a licensed ship or ships is inadequate to the needs of such port or ports,

and the Minister is satisfied that it is desirable in the public interest that unlicensed ships be allowed to engage in that trade, he may grant permits to unlicensed British ships to do so, either unconditionally or subject to such conditions as he thinks fit to impose.

3. A permit issued under this section may be for a single voyage only, or may be a continuing permit.

2. An application was recently made for a single voyage permit for the unlicensed British ship Eastern to carry passengers from Hobart to Melbourne.
3. There is no direct passenger service from Hobart to Melbourne, but as there is an adequate passenger service to Melbourne via Launceston (i.e. by train to Launceston thence to Melbourne by steamer) the application was refused.
4. The favour of advice is requested as to whether, in cases such as the above, there is power to refuse applications for permits.

In the case in question the voyage was one between ports in the Commonwealth. In deciding whether or not to grant a permit under section 286 the Minister must be guided by two considerations, viz.:

1. the existence or otherwise of one or other of the circumstances specified in paragraphs (a) and (b); and
2. the question whether the granting of the permit is in the public interest.

In forming his opinion upon the second consideration the Minister is free to base his opinion upon whatever grounds he thinks fit, and, as regards the case in question, if the Minister does not consider it to be in the public interest to grant a permit for a voyage from Hobart to Melbourne seeing that there is a passenger service via Launceston, he has full power to refuse a permit for that voyage.

[Vol. 18, p. 446]